Free Maryland Bill of Sale Template & Generator

Maryland Bill of Sale Requirements

Additional Forms Required in Maryland

• Form VR-005 (Application for Certificate of Title)
• Form VR-181 (Maryland Notarized Bill of Sale)

Maryland taxes vehicles through a 6.5% excise tax on fair market value — a rate that rose from 6% on July 1, 2025 under Md. Transportation §13-809, a change many online guides still haven't caught. The tax base depends on the vehicle's age. For a vehicle less than 7 years old, the MVA taxes the greater of the purchase price or the book value; for a vehicle 7 years and older, the greater of the price or $640. Either way, a $100 minimum excise tax applies ($50 for trailers).

That book-value default is why Maryland has an unusual conditional notary rule. If you buy a vehicle under 7 years old for $500 or more below book value and want the tax figured on what you actually paid, you must submit the MVA's own notarized bill of sale — Form VR-181 — with a written statement explaining why the vehicle sold below book. A routine sale needs no notary at all. And VR-181 should not be confused with VR-005, the Application for Certificate of Title that the buyer files to get the title itself.

The cost of titling rose too: the Maryland title fee is now $200, up from $100 effective September 1, 2025. That is on top of the excise tax and registration fees paid at the MVA.

Maryland is a safety-inspection state, and the timing matters for a sale. A used vehicle must pass inspection at one of roughly 1,600 licensed stations before the MVA issues full registration. If the vehicle has not been inspected yet, the buyer can get a 30-day temporary registration to drive it to a station — so a seller who provides a recent passing inspection certificate makes the transaction noticeably smoother.

Between the higher-of-price-or-book tax base, the conditional notarized bill of sale, and the inspection gate, Maryland rewards getting the paperwork exactly right. Document the true price, keep the vehicle's age in mind when estimating tax, and settle who handles the safety inspection before agreeing on a number.