Out-the-door price in Maryland

How Maryland works

• Maryland charges a 6.5% vehicle excise tax at titling instead of ordinary sales tax. It is flat statewide u2014 the law expressly forbids any county or city from adding to it.
• When you buy from a licensed dealer, new or used, the tax is calculated on the price the dealer certifies. Maryland's book-value rules apply only to private-party sales, so a dealer quote is the real base.
• The doc fee is capped at $800 and IS part of the taxable amount u2014 Maryland's definition of purchase price names the dealer processing charge explicitly. The cap is not inflation-indexed; it has moved only when the legislature has changed it.
• Manufacturer rebates are taxed in Maryland u2014 they are listed in the regulation as part of the taxable price. A dealer's own discount is not taxed, which is a clean and unusually explicit split.
• Freight and destination charges are taxed, and so are dealer-installed accessories. Extended warranties and mechanical service contracts are not.
• Your trade-in reduces the taxable amount with no dollar cap, but Maryland attaches real conditions: only ONE vehicle per sale, and the trade has to be owned by you or a close relative. If the trade belongs to someone else, you get no deduction at all.
• Registration is bracketed by your vehicle's manufacturer shipping weight, and crossing 3,700 lbs adds $66 a year. Many three-row SUVs and most electric vehicles are over that line.
• Maryland dealers are required by law to collect the tax and handle both title and registration for a passenger car, so the total above is what you should expect to pay at the dealership.

Rules last verified Oct 1, 2026. Our methodology.

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