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Maryland · What a car really costs

Buying a car in Maryland.

Maryland charges vehicle excise tax (titling tax) of 6.5% statewide on vehicles, with no local add-on. A trade-in does reduce the taxable price, which is real money on the deal.

6.5%
Vehicle excise tax (titling tax) on a vehicle
Full credit
Trade-in reduces the taxable price
$200.00
Title fee
$121
Registration, typical new car
$800
Doc fee, capped by law

How the tax works.

No local sales tax; the excise tax is uniform statewide.

The FY2026 budget reconciliation act raised the excise tax to 6.5% and doubled the title fee to $200 effective July 1, 2025, and raised registration surcharges.

Manufacturer rebates are not deducted from the purchase price for excise tax purposes (MVA treats them as part of the price); dealer discounts are. Verify for the specific deal.

Leases: the excise tax is charged on the vehicle's full purchase price (capitalized cost) when the leased vehicle is titled, not on the monthly payments.

6.5% of the purchase price (minimum taxable value $640, so minimum tax $41.60). Rate rose from 6% to 6.5% on July 1, 2025.
Trade-ins: For a dealer sale, the taxable price is the total purchase price less the allowance for a vehicle traded in (Md. Transportation Code 13-809).

At the DMV.

FeeAmount
Title$200.00
Registration (weight-based)~$121
Security interest (lien) filing (if financed)$20.00
Class A passenger car annual fee (includes the $40 EMS surcharge): 3,500 lbs or less $120.50; 3,501-3,700 lbs $125.50; over 3,700 lbs $191.50. New registrations are issued for two years, so a 3,500 lb car pays $241 at titling.

Leasing in Maryland.

on cap cost

Cities in Maryland.

Pick your city for the exact combined rate where you register, plus what title and registration run there.

BaltimoreBaltimore CountySilver SpringMontgomery CountyBethesdaMontgomery CountyGaithersburgMontgomery CountyAnnapolisAnne Arundel CountyRockvilleMontgomery CountyBowiePrince George's CountyHyattsvillePrince George's CountyLaurelPrince George's CountyFrederickFrederick County
What is my car worth? How buying with us works Every state

Questions.

How much is sales tax on a car in Maryland?

6.5%. Maryland applies one rate statewide on vehicles, so it does not change from city to city.

Does a trade-in lower the sales tax in Maryland?

For a dealer sale, the taxable price is the total purchase price less the allowance for a vehicle traded in (Md. Transportation Code 13-809).

What are title and registration fees in Maryland?

Title is $200.00. Class A passenger car annual fee (includes the $40 EMS surcharge): 3,500 lbs or less $120.50; 3,501-3,700 lbs $125.50; over 3,700 lbs $191.50. New registrations are issued for two years, so a 3,500 lb car pays $241 at titling.

Is the doc fee capped in Maryland?

Yes, at $800. Md. Transportation Code 15-311.1(b): dealer processing charge may not exceed $800 on and after July 1, 2024. Typical $499 per CarEdge 2026 (secondary).

How is a lease taxed in Maryland?

on cap cost

Where these numbers come from.

Rates, fees, and rules change. These figures are estimates for planning, not tax advice; confirm the final numbers with the dealer and your state's motor vehicle agency before you buy.