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]
| Item | Taxed? |
|---|---|
| Manufacturer rebate | Yes (included) |
| Dealer processing fee (up to $800) | Yes (included) |
| Trade-in allowance | No (deducted) |
| Dealer discount | No |
| Extended warranty | No |
| Case | Tax | Share of price |
|---|---|---|
| $36,000 car, $10,000 trade, $1,500 rebate, $800 fee | $1,742.00 | 4.84% |
| $36,000 car, no trade, $800 fee | $2,392.00 | 6.64% |
| $18,000 used car, $500 fee | $1,202.50 | 6.68% |
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.