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.
01 - Official fees
Maryland car sales tax fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| 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 June 2026 against official sources (listed below). Always confirm the final amount with the Maryland MVA - counties can add small local fees.
03 - Same state, other costs
More Maryland vehicle costs
04 - 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.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.