Does Maryland charge sales tax on cars?

Maryland does not apply its general 6% sales tax to vehicles. Instead it charges a separate 6% excise, or titling, tax on the taxable price of the car when you title and register it at the MVA. The effective rate is the same 6%, but it is administered as a vehicle excise.

Does a trade-in reduce the tax?

Yes. Maryland lets you subtract the trade-in allowance from the taxable price, so you pay the 6% excise tax only on the difference. Trading in a $5,000 vehicle against a $28,000 purchase reduces the taxable base to $23,000 before other adjustments.

Manufacturer rebates and dealer cash shown on the bill of sale reduce the taxable price in Maryland, so you are not taxed on the rebated amount. Enter the rebate and the tool subtracts it before applying the 6% rate.

Is the dealer doc fee taxed?

Yes. Maryland includes the dealer processing, or doc, fee in the taxable price, but that fee is capped at $500 by state law. The tool adds the doc fee up to the cap before computing the excise tax.

Is there a minimum tax?

Yes. Maryland enforces a minimum vehicle excise tax of $38.40, which corresponds to 6% of a $640 taxable price. If your adjusted taxable price is below that, the floor applies instead of the percentage.

Maryland Car Sales Tax Calculator

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Buying a car in Maryland triggers a 6% excise tax — administered separately from the general sales tax — that you pay when you title the vehicle at the MVA. Trade-ins and rebates lower the taxable base, and the dealer doc fee raises it, so the tax rarely equals a flat 6% of the sticker. This calculator applies all of those adjustments.

How it works

The 6% rate applies to an adjusted “taxable price,” not the raw sticker:

taxable price = purchase price + min(doc fee, $500) − trade-in − rebate
excise tax    = max(6% × taxable price, $38.40 minimum)

Because trade-ins and rebates come off before the rate, a generous trade can save you a meaningful amount: every $1,000 of trade-in value removes $60 of tax.

Example and notes

A $28,000 car with a $5,000 trade-in, a $1,000 rebate, and a $300 doc fee has a taxable price of $28,000 + $300 − $5,000 − $1,000 = $22,300, so the excise tax is 6% × $22,300 = $1,338. Out-of-state buyers titling a recent vehicle may instead be taxed on fair market value rather than the bill of sale price. Confirm the current rules and any credits for tax paid to another state with the Maryland MVA; this is an estimate, not tax advice.