Maryland car sales tax: 6.5% and what it applies to

• Maryland charges 6.5%, and that rate is the same everywhere in the state — no county or city adds to it on a vehicle purchase.

• Taxed on top of the vehicle price: the dealer doc fee and dealer-installed accessories.
• Not part of the taxable amount: extended warranties and service contracts.
• Your trade-in comes off before tax is calculated.

• 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.
• 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.

Source: Maryland MVA; Transportation Article Sec. 13-809; COMAR 11.15.33 · rules last verified Oct 1, 2026. Methodology.