Car sales tax · Maryland

Maryland sales tax on cars

Maryland sales tax on cars is a 6.5% vehicle excise tax collected at titling, at this rate since July 1, 2025. It applies to the price after a trade-in, but manufacturer rebates and the dealer processing fee are included. A $36,000 car with a $10,000 trade, $1,500 rebate and $800 fee owes $1,742.00.

Car Cost Calculator editorial teamUpdated 1 source

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Maryland car excise tax calculator

State rules in force November 2026

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Maryland: vehicle excise taxEstimate

Tax due$1,742.004.84% of the price
Price after trade-in, with tax and fees$27,042.00before title and registration
Price$36,000.00
Taxable dealer fees$800.00
Rebate (still taxed)−$1,500.00
Trade-in (credited)−$10,000.00
Taxable amount$26,800.00
Vehicle excise tax (titling tax) (6.5% of $26,800)$1,742.00
Total tax$1,742.00

The trade-in credit saves $650.00 of tax.

How it is calculated. Tax = 6.5% × (price + dealer processing fee − trade-in). Manufacturer rebates and down payments do not reduce the taxable price.

Maryland's vehicle excise tax

As of July 1, 2025, Maryland's excise tax for most vehicles is 6.5% of the total purchase price.[1] The MVA defines that price as the retail value certified by the dealer, including the dealer processing charge, less a trade-in allowance, with no allowance for a down payment or manufacturer's rebate.[1]

What counts in Maryland's taxable price
ItemTaxed?
Manufacturer rebateYes (included)
Dealer processing fee (up to $800)Yes (included)
Trade-in allowanceNo (deducted)
Dealer discountNo
Extended warrantyNo
Maryland car excise tax examples
CaseTaxShare of price
$36,000 car, $10,000 trade, $1,500 rebate, $800 fee$1,742.004.84%
$36,000 car, no trade, $800 fee$2,392.006.64%
$18,000 used car, $500 fee$1,202.506.68%

Why the rebate does not helpBecause Maryland taxes the price before the manufacturer rebate, a $1,500 rebate still costs you about $97.50 in tax.

Compare states on the car sales tax calculator, include the tax in a budget with the car affordability calculator, or see the yearly total on the cost of owning a car calculator.

Frequently asked questions

What is the sales tax on a car in Maryland?

A 6.5% titling excise tax since July 1, 2025.

Does Maryland tax manufacturer rebates?

Yes. Rebates are part of the taxable price; a trade-in is deducted.

Is the Maryland dealer processing fee taxed?

Yes. It is included in the total purchase price.

Sources

  1. Taxable Price · Maryland MVA, accessed November 14, 2026