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Maryland car sales tax at a glance
| Maryland | |
|---|---|
| Tax | vehicle titling excise tax |
| State rate | 6.5% |
| Counties and cities add tax | No |
| Trade-in lowers the tax | Yes, tax is on the price minus the trade |
| Leases | Tax on the car's price, due at signing |
| Dealer doc fee cap | $800 |
Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.
How to work out Maryland sales tax on a car
Multiply the taxable price by the rate. In Maryland the trade-in comes off first.
A $30,000 car with a $5,000 trade: $25,000 x 6.5% = $1,625 at the state rate.
6.5% of fair market value (3.5% for rental vehicles), paid at titling instead of sales tax; local governments may not add a titling tax (Md. Transp. 13-809). Private sales of vehicles 7+ years old: greater of price or $640.
Trade-ins
For dealer sales, fair market value is the total purchase price certified by the dealer, which includes any dealer processing charge less an allowance for trade-in (Md. Transp. 13-809(a)(3)).
Leasing a car in Maryland
Tax on the car's price, due at signing. Maryland: for leases over 180 days the 6.5% excise is charged at titling on the vehicle's retail value certified by the dealer (including the processing charge, less any trade-in), not on the payments (Md. Transp. 13-809(a)(3)(ii)). The lease calculator uses Maryland's method when you pick the state.
Dealer doc fees
Md. Transp. 15-311.1: dealer processing charge may not exceed $800 on and after July 1, 2024 (was $500), must be reasonable and disclosed.