Maryland Auto Loan Calculator (with Maryland Sales Tax & Fees)

Maryland does not technically call its vehicle sales tax a "sales tax." It is a titling tax, assessed at a flat 6% rate whenever a vehicle changes ownership and is titled with the Maryland Motor Vehicle Administration. The rate mirrors Maryland's general 6% sales tax rate, and functionally it behaves the same way for budgeting purposes: a flat 6% is added to the taxable value of the vehicle at the time of purchase, uniformly across every Maryland county, since Maryland does not permit local jurisdictions to add their own vehicle tax on top.

This calculator applies that 6% rate to the vehicle's purchase price, adds a flat estimate for title, registration, and documentation fees, subtracts your down payment and trade-in value, and amortizes the remaining balance over your chosen loan term to produce a monthly payment and total finance charge.

1. Titling tax on the vehicle price. Maryland's 6% rate is applied to the purchase price: $\text{Tax} = \text{Price} \times 0.06$.
2. Title, registration, and documentation fees. A flat $350 estimate covers typical paperwork costs for titling and registering a vehicle in Maryland.
3. Total vehicle cost. Purchase price plus titling tax plus fees gives the full out-the-door cost before your down payment is applied.
4. Financed amount. Your combined down payment and trade-in value is subtracted from the total vehicle cost, floored at $0.
5. Amortized monthly payment. The financed balance runs through the standard fixed-payment amortization formula, $A = P \times \frac{i(1+i)^n}{(1+i)^n-1}$, where $i$ is your APR divided by 12 and $n$ is the loan term in months.
6. Total finance charge. Interest is summed across every period of the amortization schedule to give the total borrowing cost over the loan term.

The engine runs this as a full period-by-period schedule using decimal-precision arithmetic, so cumulative totals reconcile exactly to the reported total interest figure rather than drifting from floating-point rounding across the loan's full term.

Using the default scenario: a $35,000 vehicle, $5,000 down payment and trade-in, a 60-month term, and a 7.25% APR.

1. Titling tax: $35,000 \times 6\% = \$2,100.00$.
2. Fees: a flat $350.
3. Total vehicle cost: $35,000 + \$2,100 + \$350 = \$37,450$.
4. Financed amount: $37,450 - \$5,000 = \$32,450$.
5. Monthly payment: amortizing $32,450 at 7.25% APR over 60 months yields a payment of approximately $646.38.
6. Total finance charge: over 60 months, total interest comes to roughly $6,333.

Because Maryland's rate is the highest of the three states covered by comparable calculators on this site (Louisiana at 4.45%, Maine at 5.5%, Maryland at 6%), the tax add-on here has the largest dollar impact on the financed amount and monthly payment for an identically priced vehicle.

• The Maryland trade-in tax credit. Maryland law generally allows the value of a trade-in vehicle, when the trade is made as part of a purchase from a licensed dealer, to reduce the taxable value subject to the 6% titling tax. This calculator applies down payment and trade-in as a single post-tax reduction to the financed amount and does not model that credit, meaning the tax figure shown here can be higher than what an actual Maryland dealer transaction with a trade-in would produce.
• Minimum titling tax on low-value vehicles. Maryland applies a minimum taxable value floor for titling tax purposes on certain older or lower-value vehicles, which is not modeled by this straightforward percentage-of-price calculation.
• Excise tax exemptions. Certain transfers, such as between immediate family members or into a business entity under specific conditions, may be exempt from Maryland's titling tax; this calculator assumes a standard taxable retail purchase.
• Dealer add-on products and extended warranties, which are not part of the base price or financed amount modeled here.
• Rate variation by credit tier. The APR entered is treated as a flat input; your actual approved rate depends on your credit profile and lender.

• Overlooking the trade-in tax credit. Buyers trading in a vehicle at a Maryland dealership often pay titling tax on a lower taxable amount than the full purchase price, so this calculator's tax figure can overstate the actual tax due when a genuine trade-in is involved.
• Confusing Maryland's titling tax with a county-level sales tax add-on. Maryland's 6% rate is flat and uniform statewide with no county or municipal add-on, unlike states that permit local option vehicle taxes.
• Assuming a longer loan term is automatically a better deal because the monthly payment is lower; a 72-month term increases total interest paid compared to a 48- or 60-month term at the same rate.
• Budgeting from the sticker price instead of the full out-the-door cost, which routinely understates the amount that actually needs to be financed.
• Not shopping the APR across lenders, since even a one-point rate difference changes the monthly payment and total finance charge meaningfully over the loan term.

• Comptroller of Maryland: General sales and use tax rate information.
• Maryland Motor Vehicle Administration: Titling tax, registration, and trade-in credit rules for vehicle purchases.
• Consumer Financial Protection Bureau: Guidance on auto loan financing, APR disclosure, and amortization mechanics under Regulation Z.