In Maryland, the taxes and fees associated with leasing a car include state excise tax, DMV fees, and dealership fees. Here’s a breakdown of these components:
- State Excise Tax:
- A 6% state excise tax is collected on the purchase of all vehicles in Maryland.
- For vehicles leased in Maryland, sales tax is paid upfront and may be “capped,” meaning the cost is spread over the lease payments.
- For short-term passenger car and recreational vehicle rentals, an 11.5% tax is imposed, while certain short-term truck rentals are subject to an 8% tax. Leases for a maximum of 180 days will be taxed at a special rate, while leases for at least one year are considered exempt.
- There are no additional local or county tax rates in Maryland.
- DMV Fees:
- Registration fee ranges from $128 to $180.
- Plate transfer fee is $10.
- The average car buyer in Maryland should expect to spend approximately $105 for the title, registration, and plate fees.
- Specific DMV fees include:
- Passenger Vehicles Under 3,700 Pounds: $135.
- Passenger Vehicles Over 3,700 Pounds: $187.
- Car Title: $100.
- Emission Tests: $14.
- Dealership Fees:
- In Maryland, a dealership can charge a maximum of $500 in document fees, with the average cost being about $295.
- Dealerships may also impose other fees such as advertising and transport fees, which can vary and are often negotiable.
It’s important to note that these rates and fees can vary, and there might be additional fees depending on the specific dealership or leasing company. When leasing a car, it’s advisable to consult with the dealership or leasing company for a detailed breakdown of all applicable taxes and fees.