What you pay in tax when you buy a vehicle in Maryland, from the statute and the revenue department.
Verified September 21, 2026 · statute and revenue department cross-checked
The statute and the actual bill do not match. The rate rose from 6 to 6.5 percent on July 1, 2025. From October 1, 2026 you can no longer use a notarized bill of sale to prove a below-book private purchase price, so book value will apply whenever your price is $500 or more below book.
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Buying the car is only half the cost. You still owe an annual registration fee.
Local governments are barred from taxing vehicle titles, so 6.5 percent is the whole amount. Trade-in credit is full. Manufacturer rebates and dealer processing fees up to $800 are inside the taxable price. A private sale of a car seven or more model years old is taxed on the greater of price or $640.
Md. Code, Transportation § 13-809 “the tax imposed by this section is: (i) ... 6.5% of the fair market value of the vehicle; or (ii) For a rental vehicle, 3.5% ... the minimum tax imposed under this section shall be $100.”
2026 Laws of Maryland Ch. 119 (SB 125) “If the total purchase price is $500 or more below the retail value ... THE VALUATION SHOWN IN THE NATIONAL PUBLICATION OF USED CAR VALUES ... This Act shall take effect October 1, 2026.”
Last verified: September 21, 2026.
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Estimates only. Your dealer or the state issues the final bill, and exemptions can change what you owe. This page does not collect or store anything you enter.