Maryland excise titling tax and MVA fees

A titling tax, not a sales tax

Maryland does not charge its sales tax on cars. The MVA collects an excise when it issues the title: under Transportation Article §13-809, 6.5% of the fair market value, with a $100 minimum. For a dealer sale, the base is the agreed price including the dealer processing charge, minus the trade-in. Private sales follow other rules: a car 7 or more model years old is taxed on at least $640, and a younger car sold $500 or more below its book value is taxed on the book value unless the MVA accepts a notarized bill of sale on its own form explaining the price.

Registration by shipping weight, plus the trauma surcharge

Since July 1, 2025, a passenger car pays $80.50 a year up to 3,500 lb, $85.50 up to 3,700 lb and $151.50 above, and every vehicle adds a $40 yearly surcharge that funds emergency medical services and the Shock Trauma Center. Registrations are usually issued for two years, so both amounts are doubled at the counter; a one-year term with a payment schedule is also available. Electric cars and plug-in hybrids owe an extra yearly surcharge set at $125 and $100 by the 2024 budget law and indexed to inflation by the MVA since July 2025. Compare with Virginia, where registration stays near $31 but localities tax the car every year.

Inspections: safety at resale, emissions every two years

A used car cannot be titled without a Maryland safety inspection certificate issued by a licensed station within the previous 90 days, and the station sets the price. Emissions testing is separate: cars registered in Baltimore City and 13 counties, from Anne Arundel to Washington County, go through the Vehicle Emissions Inspection Program every two years. The doc fee comparison shows how the $800 processing cap ranks among states.

What sets Maryland apart

• Maryland's purchase tax is an excise collected at titling: 6.5% of the vehicle's fair market value, with a $100 minimum (Md. Code).
• For a dealer sale, the taxed price includes the dealer processing charge and is reduced by the trade-in allowance (Md. Code).
• A private sale of a car 7 or more years old is taxed on at least $640; a younger car sold $500 or more below book value is taxed on the book value unless a notarized MVA bill of sale is accepted (Md. Code).
• A certificate of title costs $200 (Md. Code).
• Passenger car registration depends on shipping weight: $80.50 a year up to 3,500 lb, $85.50 up to 3,700 lb and $151.50 above, since July 1, 2025 (Md. Code).
• Every registration also carries a $40 yearly surcharge for the emergency medical system and Shock Trauma (Md. Code).
• Electric cars pay a yearly surcharge set at $125 and plug-in hybrids $100 by the 2024 budget law, adjusted for inflation every year since July 2025 (Md. Code).
• Dealer processing charges are capped at $800 for sales on or after July 1, 2024, and must be printed on the contract as not required by law (Md. Code).
• A used car needs a Maryland safety inspection certificate, valid 90 days, before the MVA titles and registers it (Md. Code).
• Cars registered in Baltimore City and 13 counties take a VEIP emissions test every two years; the fee was $30 through June 30, 2026 (Maryland Department of Legislative Services).

What the Maryland calculation cannot know

• The electric and plug-in hybrid surcharge was set at $125 and $100 a year by the Budget Reconciliation and Financing Act of 2024 and has been adjusted for inflation by the MVA since July 1, 2025; the current adjusted amount was not readable on an official page for this release (the MVA site refused access), so the line has no amount.
• The VEIP emissions test fee was capped at $30 through June 30, 2026 and is then adjusted for inflation; the adjusted amount was not read on an official page, so the emissions test is shown without an amount.
• The safety inspection required before titling a used car is priced by each licensed station; it is shown without an amount.
• On a private sale of a car less than 7 years old, the excise is due on the book value when the price is $500 or more below it (unless a notarized bill of sale is accepted); a car 7 years or older is taxed on at least $640. The form does not ask the book value, so the engine taxes the price.
• Registration fees are for a passenger car (Class A) by manufacturer's shipping weight; a pickup registered as a Class E truck pays a different schedule based on its maximum gross weight, which the form does not ask.
• The engine uses a two-year registration; a one-year term is also offered (with a payment schedule), at half the amount.