How Maryland taxes a car deal
- State tax rate
- 6%
- Local add-ons
- None typical
- Trade-in credit
- None — taxed on full price
- Doc fee
- Capped at $800
Maryland doesn't technically charge sales tax on vehicles — it charges a 6% titling tax, and the distinction costs you money in one specific way: there is no trade-in credit. Tax is calculated on the full purchase price regardless of your trade. On a $32,000 purchase with an $8,000 trade, that's $480 more tax than a credit-state buyer pays. Like Virginia next door, Maryland shifts the trade-in decision: the dealer's allowance has to win on its own merits, so get a private-sale or online-buyer quote before you let the trade fold into the deal.
Maryland caps dealer doc fees at $800 — a cap that was raised from $500 in 2024, and one high enough that it functions more as a target than a limit; most Maryland dealers charge at or near it. Knowing it's the legal maximum at least tells you when a fee has crossed from 'steep' into 'illegal.'
The titling tax is calculated on the price including most add-ons, and Maryland applies a minimum-value floor on older private-party sales (tax on book value if the claimed price is too low). No local add-ons exist, so 6% of the full price plus the fee stack is the whole formula — flat, just not friendly.
Every figure above was last verified against official Maryland sources in August 2026. Tax rules do change — the final word is always your paperwork and the DMV.