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State Guide Last verified August 30, 2026

Maryland Car Sales Tax, Trade-In Credit, and Out-of-State Rules

What the desk and the buyer each need to know when a Maryland deal crosses state lines: the rate, the trade-in math, the exemption paperwork, and the drive-home tags. Every fact links to the official source.

Check an Out-of-State Deal Jump to Quick Facts

Every fact sourced to Maryland official publications below

Short answer

Maryland charges 6.5% vehicle titling excise tax, no local add-ons instead of an ordinary sales tax. Maryland taxes the price after the trade-in is deducted. Maryland exempts out-of-state buyers only under specific conditions. Maryland gives only partial credit for tax paid to another state. The rules above cover retail dealer sales; most states handle leases and private-party sales separately.

Maryland car sales tax quick facts

Last verified August 30, 2026
Sales tax rate on vehicles6.5% vehicle titling excise tax, no local add-ons[1]
Trade-in creditMaryland taxes the price after the trade-in is deducted. The trade-in must be a non-leased vehicle. Down payments, manufacturer rebates, and other nonmonetary consideration do not reduce the taxable price.[1]
Selling to an out-of-state buyerMaryland exempts out-of-state buyers only under specific conditions. Maryland's excise tax is imposed on the issuance of a Maryland certificate of title, so nothing is owed to Maryland when the buyer titles and registers the vehicle in another state and the vehicle is never titled here. The MVA in-transit registration a nonresident buyer drives out on may be used only to transport the vehicle to a jurisdiction outside Maryland for titling and registration.[2]
Credit for tax paid to another stateMaryland gives only partial credit for tax paid to another state. The credit is rate-differential only: Maryland charges the difference between the other state's rate and its own 6.5% and never refunds an overage. It is available only to an owner who has been a Maryland resident for 60 days or less. Title after that 60-day window and Maryland allows no credit at all.[2]
Dealer doc feeCapped at $800[1] · taxable[1]
Temp tag for the drive homeMaryland issues an in-transit registration to a non-resident owner who bought a vehicle here, good for 14 days and usable only to drive the vehicle to another jurisdiction to be titled and registered there.[3]
Out-of-state buyer registrationYou do not need a Maryland driver's license to title and register here. MVA asks for a valid Maryland driver's license or proof of a valid Maryland residential address. A new resident must title and register within 60 days of moving. Someone visiting who keeps an out-of-state vehicle in Maryland for 60 days or longer may need a non-resident permit.[4]

Maryland car sales tax calculator

Enter the sale price and any trade-in to estimate Maryland vehicle tax and the out-the-door total before title and registration. It applies the verified rate, trade-in rule and doc fee treatment from the quick facts above.

General information, not tax or legal advice. Everything on this page was compiled from official Maryland government publications (listed under Sources) and last verified August 30, 2026, but rates and rules change and errors are possible. Voltra makes no warranty as to accuracy or completeness and accepts no liability for decisions made on this data. Confirm the current rules with the Maryland Motor Vehicle Administration or a licensed professional before acting on anything here. Covers retail dealer sales; leases and private-party sales follow different rules in most states.

From the desk

Maryland charges a titling excise instead of sales tax, with its own rules on trade-ins and minimums. Desks in the DC-Virginia corridor juggle three different systems, and Maryland's is the one keyed entirely to the title event.

Selling to an out-of-state buyer in Maryland

Maryland exempts out-of-state buyers only under specific conditions. Maryland's excise tax is imposed on the issuance of a Maryland certificate of title, so nothing is owed to Maryland when the buyer titles and registers the vehicle in another state and the vehicle is never titled here. The MVA in-transit registration a nonresident buyer drives out on may be used only to transport the vehicle to a jurisdiction outside Maryland for titling and registration.[2]

The desk's job doesn't end at the tax line. Somebody still has to chase the title, the temp tag, and the buyer's home-state registration until each one lands.

Buying in Maryland from out of state

If you live in another state and buy in Maryland, the deciding rule is where the vehicle gets registered: your home state's tax applies at registration, and what happens at the Maryland sale depends on the rule above. Maryland gives only partial credit for tax paid to another state. The credit is rate-differential only: Maryland charges the difference between the other state's rate and its own 6.5% and never refunds an overage. It is available only to an owner who has been a Maryland resident for 60 days or less. Title after that 60-day window and Maryland allows no credit at all.[2]

Registration and temp tags

Maryland issues an in-transit registration to a non-resident owner who bought a vehicle here, good for 14 days and usable only to drive the vehicle to another jurisdiction to be titled and registered there.[3] You do not need a Maryland driver's license to title and register here. MVA asks for a valid Maryland driver's license or proof of a valid Maryland residential address. A new resident must title and register within 60 days of moving. Someone visiting who keeps an out-of-state vehicle in Maryland for 60 days or longer may need a non-resident permit.[4]

Bordering states

Cross-border deals from Maryland most often involve Delaware, Pennsylvania, Virginia, Washington, DC and West Virginia. Every pair works differently; run the exact combination in the out-of-state checker.

Vehicle-type exceptions

A rental vehicle is taxed at 3.5% of fair market value instead of the 6.5% that applies to everything else.[2]

How Maryland actually levies this

Maryland does not charge sales tax on a vehicle purchase. It charges a titling excise tax instead, imposed when a Maryland certificate of title is issued and collected by the MVA at 6.5% of the vehicle's fair market value.[2]

Sources

  1. mva.maryland.gov/…/taxable-price · verified 2026-08-23
  2. mgaleg.maryland.gov/…/StatuteText · verified 2026-08-30
  3. mva.maryland.gov/…/transit-registration · verified 2026-08-23
  4. mva.maryland.gov/…/title-register-your-vehicle · verified 2026-08-23
Cite this page

“Maryland Car Sales Tax & Out-of-State Rules.” Voltra. Last verified August 30, 2026. https://voltra.ai/car-sales-tax/maryland/

More state-by-state guides: trade-in tax credit by state · recent rule changes · all states + the out-of-state checker

Maryland car sales tax questions

Maryland charges 6.5% vehicle titling excise tax, no local add-ons instead of an ordinary sales tax. The rate applies at titling or registration rather than the point of sale, and trade-in handling determines the amount it hits.

Maryland taxes the price after the trade-in is deducted. The trade-in must be a non-leased vehicle. Down payments, manufacturer rebates, and other nonmonetary consideration do not reduce the taxable price. The taxable price rides on that treatment, so identical deals can carry different tax bills depending on the state.

Maryland exempts out-of-state buyers only under specific conditions. Maryland's excise tax is imposed on the issuance of a Maryland certificate of title, so nothing is owed to Maryland when the buyer titles and registers the vehicle in another state and the vehicle is never titled here. The MVA in-transit registration a nonresident buyer drives out on may be used only to transport the vehicle to a jurisdiction outside Maryland for titling and registration.

Maryland gives only partial credit for tax paid to another state. The credit is rate-differential only: Maryland charges the difference between the other state's rate and its own 6.5% and never refunds an overage. It is available only to an owner who has been a Maryland resident for 60 days or less. Title after that 60-day window and Maryland allows no credit at all.

Maryland caps dealer doc fees at $800. The doc fee is taxed along with the vehicle.

Start with the sale price and subtract the trade-in allowance (Maryland credits it in full), then multiply by 6.5% vehicle titling excise tax, no local add-ons. The dealer doc fee is taxable in Maryland, so add it before you multiply. The Maryland calculator on this page runs those steps with the verified figures and shows the out-the-door estimate before title and registration fees.