SNOW HILL, Md. —Worcester County will raise its room tax on short-term rentals beginning Jan. 1, 2026. This follows a request made by Ocean City's council to raise the tax made earlier in 2025.
The tax will increase from 5 percent to 6 percent and will apply to rentals lasting four months or less. This includes hotels, motels, condos, cottages, apartments and other places that offer overnight stays.
The room tax is added to the total cost paid by guests for their stay. Rentals lasting longer than four months with the same renter are not subject to the tax.
Property owners who rent out rooms or homes are required to register with the county and file a room tax report each month. Owners who manage their rentals themselves must contact the Worcester County Treasurer’s Office to get the proper forms. If a rental is handled by a real estate agent or rental company, that agency is responsible for filing the report and paying the tax.
Room tax reports are sent out by the county every three months and are due by the 21st of the month for the previous month’s rentals. Officials said the room tax should be paid separately from Maryland’s retail sales tax, which is also due on the 21st.
County officials warned that late payments can result in penalties. Taxes that are unpaid for more than one month will be charged a 10 percent penalty, along with additional interest each month until the balance is paid.
The new 6 percent room tax rate will take effect countywide on Jan. 1, 2026.