Official fees
Maryland car sales tax chart
Standard excise tax rate
6.5%
up from 6.0% before July 1, 2025
Short-term rental vehicles
3.5%
Dealer sale base
price − trade-in
$0 tax if trade-in ≥ price
Private sale, notarized VR-181 Bill of Sale
actual price paid
Private sale, no notarized bill of sale
lower of price or book value (within $500) or book value
Minimum taxable value
$640
tax floor on any vehicle
Qualifying family gift (VR-103)
$0 excise tax
Figures verified July 2026 against official sources (listed below). Always confirm the final amount with the Maryland MVA - counties can add small local fees.
- Excise tax rate
- 6.5%
- Minimum taxable value
- $640
- No notarized bill of sale
- Taxed on book value
- Qualifying family gift
- Tax-exempt (VR-103)
- New resident credit
- Within 60 days
Overview
The tricky part isn't the rate, it's the base. Dealer sales are taxed on price minus trade-in, with the tax dropping to $0 if the trade-in covers the full price. A private sale is taxed on your actual price only if both parties sign a notarized Bill of Sale (MVA form VR-181); without one, the MVA taxes the NADA clean-retail book value instead - unless your stated price is within $500 of book value, in which case it uses whichever of the two is lower. There's also a $640 floor: no vehicle is taxed on less than that, and gifts to close relatives skip the tax entirely under a separate certification.
Pick your scenario below and the calculator applies Maryland's actual rule, not a flat percentage.
Same state, other costs
More Maryland vehicle costs
Common questions
Maryland car sales tax FAQ
- Is Maryland car tax really not 'sales tax'?
- Correct - it's a titling excise tax under Maryland's Transportation Article, administered entirely by the MVA. The general 6% state sales tax specifically exempts vehicles that pay this excise tax instead, so you never pay both.
- What happens if I don't have a bill of sale for a private purchase?
- The MVA falls back to the vehicle's NADA clean-retail book value (adjusted for mileage). If your declared price happens to be within $500 of that book value, they'll tax the lower of the two numbers; if your price is more than $500 under book value with no notarized proof, they tax the full book value. Always get a notarized Bill of Sale (VR-181) signed by both parties if you actually paid less than book value.
- Does trading in a car lower my Maryland excise tax?
- Only through a licensed dealer. The tax applies to the purchase price minus the trade-in allowance, and if your trade-in is worth as much as or more than the new vehicle, the excise tax due drops to zero. Private-party buyers get no such credit - there's no dealer to apply it.
- Is there a minimum excise tax even on a cheap car?
- Yes - Maryland won't assess tax on less than $640 of value, so the effective floor is about $41.60 (6.5% of $640), regardless of how low your actual purchase price was.
- How do I avoid the tax when gifting a car to family?
- File Form VR-103, Application for Maryland Gift Certification. It exempts genuine gifts between spouses, parents and children, grandparents and grandchildren, siblings, and even aunts/uncles and nieces/nephews from the 6.5% excise tax entirely - one of the more generous family lists among the states.
- I moved to Maryland with a car I already paid tax on elsewhere - do I owe 6.5% again?
- You get a credit for the tax you already paid, but only if you title and register the vehicle in Maryland within 60 days of becoming a resident. After that window closes, the credit is gone and you owe the full excise tax with no offset.
- Do rental car companies pay the same 6.5%?
- No - short-term rental vehicles are taxed at a separate, lower 3.5% excise rate, and their title fee is also discounted to $100 instead of the standard $200.
Receipts
Official sources
Every number on this page comes from these documents - check them yourself.
