Maryland used car dealer paperwork and sales tax guide
How Maryland sales tax works on a used-car deal, how trade-ins and dealer fees are treated, and the title forms and notices a Maryland dealer prints.
Last checked November 14, 2026
This is a plain-language summary of how a used-car deal works out in Maryland: the sales tax, what happens to a trade-in, how dealer fees are treated, and the paperwork a dealer prints. DMS Apex uses these same rules to work out each Maryland deal.
Maryland tax and fees at a glance
| Item | Maryland |
|---|---|
| State tax | 6.5% state rate |
| Who pays it | Collected by the dealer |
| Trade-in | Reduces the tax |
| Dealer processing charge (not required by law) | Part of the taxable amount |
| Service contract | Not taxed |
| Starting title fee in DMS Apex | $200 |
How Maryland sales tax is worked out
Maryland: the 6.5% titling excise tax is figured on the price including the dealer processing charge, less the trade-in allowance (no allowance for a down payment or a manufacturer rebate). A warranty or repair contract is not taxed. There is no local tax. The dealer processing charge is capped at $800 and must be shown as 'Dealer processing charge (not required by law)'. Title fee starts at $200. The processing charge line prints as 'Dealer processing charge (not required by law)' with its amount; add any freight charge as an other charge.
Maryland paperwork a dealer prints
DMS Apex prints these documents for a Maryland deal, all in black and white:
- Buyer's Order with the dealer processing charge wording
- Buyers Guide
Step-by-step form guides
- VR-005 Application for Certificate of Title: how to fill it out
This is general information, not legal or tax advice. Maryland rules change: confirm current requirements with the Maryland Motor Vehicle Administration.
Common questions
How much is sales tax on a used car in Maryland?
6.5% state rate. A trade-in reduces the taxable amount. See the table above and confirm the current rate with the Maryland Motor Vehicle Administration.
Does a trade-in lower the tax in Maryland?
Yes. In Maryland the trade-in allowance reduces the amount the tax is figured on.
Is the dealer fee taxed in Maryland?
Yes. In DMS Apex the dealer processing charge (not required by law) is part of the taxable amount for Maryland.
Does DMS Apex print Maryland dealer forms?
Yes. It prints Buyer's Order with the dealer processing charge wording, Buyers Guide.
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