Maryland car tax
Maryland has no yearly car tax. When you title a car you pay a one-time 6.5% excise titling tax. Registration is billed every two years at a flat rate by weight.
No yearly car tax; only registration fees.
Buying a car in Maryland: one-time tax
Maryland motor vehicle excise (titling) tax — 6.5%. Your trade-in is subtracted before tax.
6.5% of fair market value (rentals 3.5%). The trade-in allowance is deducted. Private sales of cars 7+ years old are taxed on at least $640. The rate rose from 6%.
Registration and due dates
Registration costs about $137–$187 for two years, by weight. A title costs $200.
No yearly car tax. Registration renews every two years.
Cut what your car costs in Maryland
Car tax is set by your town, but your loan and insurance aren't. Refinancing a car loan at a lower rate often saves more each year than the tax itself.
Questions
What tax do I pay when I buy a car in Maryland?
A 6.5% excise titling tax on the price after trade-in, paid to the MVA.
Does Maryland tax cars every year?
No. Only the two-year registration fee applies.
Can I deduct Maryland car taxes on my federal return?
Generally no. Maryland has no yearly value-based car tax, and flat registration fees cannot be deducted as personal property tax. Sales tax on the purchase can be deducted instead of income tax if you itemize.
Sources
Last checked October 14, 2026. Rates are for passenger cars owned by individuals; leased, business and specialty vehicles can differ. Confirm with your tax collector or commissioner of the revenue.