Free Maryland Car Bill of Sale
Maryland's vehicle tax is a flat 6.5% Excise Tax — no local add-ons. Critical: MD requires a one-time safety inspection at title transfer (~$85), one of the most expensive transfer inspections in the country. After that, no re-inspection is needed (just biennial emissions via VEIP).
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Maryland Car Bill of Sale — What You Need to Know
Sales Tax Details
6.5% state Excise Tax on vehicles (flat, no local add-ons). For a used vehicle under 7 years old bought privately, tax is on the sale price unless it is $500 or more below book value, in which case book value is used.
Inspection Requirements
MD requires one-time safety inspection upon title transfer (~$85–$110). No annual re-inspection. Emissions testing (VEIP) every two years in 13 counties and Baltimore City (the fee rose from $14 to $30 in July 2025).
Maryland Car Sale — Step-by-Step Checklist
- Seller confirms current biennial VEIP emissions certificate.
- Seller or buyer obtains Maryland Safety Inspection Certificate (~$85, one-time, less than 90 days old).
- Complete a bill of sale with VIN, odometer, sale price (the MVA asks for one "if applicable").
- Seller completes odometer disclosure and signs the MD title over (Maryland law sets no notarization requirement for the title assignment).
- Buyer files Form VR-005 at MD MVA promptly — the MVA may add a service fee if the title and application arrive more than 30 days after delivery.
- Buyer pays 6.5% state Excise Tax (on the sale price, or book value if the price is $500+ below it on a vehicle under 7 years old) + the $200 title fee and registration fees.
Common Pitfalls
- Skipping the one-time MD safety inspection — transfer blocked at MVA.
- Underreporting sale price — on a vehicle under 7 years old, a price $500+ below book value is taxed on book value unless the buyer documents the lower price (for example, a bill of sale plus a canceled check or bank statement).
- Missing VEIP emissions — biennial and strictly enforced.
Pro Tip
MD car sales: 6.5% Excise Tax on book-adjusted value, one-time safety inspection, VR-005, VEIP emissions biennially.