Last checked Nov 10, 2026
Buying a car in Maryland
The tax you will pay, whether your trade-in lowers it, what the dealer may charge for paperwork, and where to title and register. Taken from official Maryland sources.
- State tax on vehicles
- 6.5%
- Trade-in lowers tax
- Yes
- Doc fee limit
- $800
- Deadline to title or register
- Check with the state
vehicle excise tax
Sales tax on a car in Maryland
Maryland charges a state vehicle excise tax of 6.5% on vehicle purchases.
The 6.5% rate has applied to most vehicles since July 1, 2025. Vehicles seven years and older are taxed on the greater of the purchase price or a minimum value of $640, and extra documentation may be required if the price is $500 or more below book value.
Does a trade-in lower the tax?
The excise tax is charged on the total purchase price less an allowance for the trade-in of a non-leased vehicle. A down payment or manufacturer's rebate does not reduce the taxable price.
Example, state tax only. On a $30,000 car with a $10,000 trade-in, the taxable amount is $20,000, so the state tax is about $1,300. Without the trade-in it would be $1,950. Local taxes and fees are extra.
Dealer doc fees in Maryland
A dealer processing charge must be reasonable and may not exceed $800 on and after July 1, 2024. The sales contract must show it as a dealer processing charge that is not required by law.
The documentation fee is taxed along with the vehicle.
Whatever the rule, the fee is part of your out-the-door price. Ask for it in the written quote and negotiate the total, not the line. See dealer fees explained.
Title and registration
Titles and registrations are handled by the Maryland Motor Vehicle Administration. A dealer usually handles the title and registration. In a private sale the buyer is responsible for inspection, titling, and registration.
Also worth knowing
- Most used vehicles must pass a Maryland safety inspection before they can be titled and registered.
- An advertised price must include the dealer processing charge unless the amount is clearly disclosed next to the price.
- Shipping or freight charges and manufacturer rebates are part of the taxable price; extended warranties and the electronic registration fee are not.
Sources
- Maryland Motor Vehicle Administration: Excise Tax (mva.maryland.gov)
- Maryland Motor Vehicle Administration: Taxable Price bulletin (April 23, 2026) (mva.maryland.gov)
- Maryland Transportation Article 15-311.1: Dealer processing charge (mgaleg.maryland.gov)
- Maryland Transportation Article 13-809: Excise tax on certificates of title (mgaleg.maryland.gov)
- Maryland Motor Vehicle Administration: Buying a Vehicle (mva.maryland.gov)
Last checked Nov 10, 2026; next review by Feb 10, 2027. This page explains how the rules generally work and is not tax or legal advice. Rules change, so confirm with the state. Report an error.
Concierge
Rather not do this part yourself?
Tell us the car you want. A person finds it, checks it, negotiates the out-the-door price in writing, and lines up the paperwork. You approve every step.