Additional Fees and Taxes in Maryland for Car Purchases
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Even though you only paid $19,000 for the car, the taxes will still be calculated based on the full sticker price of $30,000.
In addition, you receive an additional $1000 in cash incentives and manufacturer rebates, reducing the total price of the car to $19,000. Let's say you find a car you like for $30,000 and trade-in your car to receive a $10,000 credit against the price. The sales tax applies to the full price on the vehicle, before trade-ins and other incentives that your dealer may offer. What Is the Sales Tax in Maryland for Car Purchases?Īccording to the Maryland Department of Transportation, the state of Maryland collects a six percent state excise tax on vehicle purchases. Because this is an additional cost on top of the purchase price of the vehicle, you should know what kind of tax bill you will face when you decide to make the purchase. Car purchases are the largest sales that are commonly made, which can result in a substantial tax bill. If you are thinking about purchasing a car in the state of Maryland, it's a good idea to know about the Maryland car tax and fees you can expect to pay when you buy.