Updated October 2026
Relocating to Maryland? You may not have to pay the full excise tax again. Here’s how the out-of-state tax credit, the 60-day rule, and military relief really work.
If you recently moved to Maryland and are titling your vehicle here, you’re probably asking: “Am I getting taxed twice?”
Short answer? Usually not. Long answer? It depends on when you moved, the tax rate in your previous state, and how old your vehicle is.
Let’s break it down clearly.
What Is Maryland Vehicle Excise Tax?
Maryland charges a 6.5% motor vehicle excise tax when you title a vehicle in the state. This is not regular retail sales tax. It’s a titling tax: it’s triggered when you request a Maryland title, even if you bought the vehicle years ago somewhere else.
You’re not being taxed for buying the car again. You’re being taxed for titling it in Maryland. For vehicles coming from another state, the MVA uses the National Automobile Dealers Association (NADA) clean retail value to figure the tax.
The 60-Day Rule: The Most Important Date
New residents should title and register their vehicle within 60 days of moving to Maryland. The credit for tax you paid in your previous state only applies if you haven’t been a Maryland resident for more than 60 days. Miss that window and you lose the credit, and you can be cited for out-of-state registration.
How Much Will You Pay? The Formula
Moved within the last 60 days, vehicle 6 model years or newer
- Previous state’s rate was 6.5% or higher: you pay $100. That’s Maryland’s minimum excise tax, so you still owe $100 even if you already paid tax in your old state.
- Previous state’s rate was below 6.5%: you pay the difference. Example: Virginia’s rate is 4%, so you pay 2.5% of the vehicle’s retail value.
- Previous state’s rate was 0%: you pay the full 6.5% of the retail value.
Moved more than 60 days ago
- Vehicle 6 model years or newer: full 6.5% of the retail value. No credit.
- Vehicle 7 model years or older: $41.60.
Trailers, Motorcycles and RVs
The same excise tax and the same 60-day rule apply when you title a trailer, motorcycle or RV in Maryland, since the tax covers motor vehicles and trailers (Transportation Article §13-809). The one difference the MVA lists: a trailer 7 model years or older pays $20.80 instead of $41.60. Titling and registration fees vary by vehicle type, so check the MVA fees page.
The MVA lists each state’s tax rate on its official excise tax page. For a quick number, try our Maryland Out-of-State Vehicle Tax Estimator.
Active-Duty Military Relocating Under Orders
Maryland provides excise tax relief for qualifying active-duty service members. You may qualify if you were on active duty, relocated to Maryland under official military orders, and owned the vehicle before relocating.
Documents usually include official PCS or relocation orders, proof of active-duty status, proof of prior ownership, and identification.
Important: the relief isn’t automatic. If documentation isn’t provided during processing, tax may be charged and you may need to request a refund afterward. See the MVA’s Information for Active Service Members and our guide, Military Relocation to Maryland: When Vehicle Excise Tax May Be Refunded.
New in October 2026: Out-of-State Plates Law
A new Maryland law took effect October 1, 2026. The MVA is now notifying Maryland residents who keep vehicles registered in another state. Those owners must title and register in Maryland, get a non-resident permit, or show why they don’t need to. Active-duty service members and their dependents can apply for a non-resident permit at no cost.
Maryland residents who re-title a vehicle back into Maryland by December 31, 2026 are exempt from excise tax on that “Return to State” transaction. Starting January 1, 2027, those vehicles will pay excise tax. Details: Maryland Out-of-State Plates: New Law Started Oct 1, 2026.
Why Does Maryland Call It “Excise” Instead of Sales Tax?
Because legally it’s a tax on the privilege of titling a vehicle in Maryland, not a retail sale. The trigger is titling, not purchase. Some transfers, such as certain gifts between family members and inherited vehicles, are treated differently under Maryland Transportation Article §13-810, so ask before you assume the full rate applies.
Can You Get a Refund?
Yes. If excise tax was paid in error and you qualify for the out-of-state tax credit or the military exemption, you may submit a refund request to the Maryland Motor Vehicle Administration. Refunds require documentation and review, and processing time varies.
New-Resident Checklist
- Your vehicle’s out-of-state title (or lienholder information if it’s financed)
- A passed Maryland safety inspection certificate
- Proof of Maryland insurance
- A Maryland driver’s license or proof of a Maryland residential address
- Lease contract or leasing company letter showing tax paid, if the vehicle is leased
Full requirements are on the MVA’s Title & Register Your Vehicle (New Residents) page, and current fees are on the MVA fees page.
Common Mistakes That Cost People Money
- Waiting more than 60 days after moving to title the vehicle
- Not bringing military orders at the time of processing
- Not bringing lease tax documents for a leased vehicle
- Assuming you’ll owe nothing because you already paid tax. The $100 minimum still applies.
Final Thoughts
Relocating to Maryland doesn’t automatically mean paying the full tax again, but timing matters. Title within 60 days, bring the right paperwork, and you’ll keep any credit you’re entitled to.
Frequently asked questions
How much is Maryland vehicle excise tax?
6.5% of the vehicle’s value at titling, with a $100 minimum. For vehicles from another state, the MVA uses the NADA clean retail value.
Do I pay excise tax if I already paid sales tax in another state?
If you title within 60 days of moving and your vehicle is 6 model years or newer, you pay $100 when your previous state’s rate was 6.5% or higher, or the difference when it was lower. For example, from Virginia (4%) you pay 2.5%.
What if I moved to Maryland more than 60 days ago?
You lose the out-of-state credit. You pay the full 6.5% for a vehicle 6 model years or newer, or $41.60 for a vehicle 7 model years or older.
Does excise tax apply to trailers, motorcycles and RVs?
Yes. The same 6.5% rate, $100 minimum and 60-day credit rule apply. A trailer 7 model years or older pays $20.80 instead of $41.60.
Does active-duty military qualify for excise tax relief?
Yes, under certain conditions. Official relocation orders and proof that you owned the vehicle before moving are required.
Can I get a refund if I paid excise tax by mistake?
Yes. You may submit a refund request to the Maryland MVA with supporting documentation.
Is excise tax the same as sales tax?
No. Excise tax applies when you title a vehicle in Maryland, not simply when you buy it.
Need help with your out-of-state title transfer? Maryland Express Services, an MVA-licensed tag and title agent at 25 Main St Suite C, Reisterstown, can review your paperwork before processing. We’re open 7 days. Call, text or WhatsApp (443) 826-7843, or Contact Us.
