Maryland does not put a retail sales tax on the boat you title here. You pay a 5% vessel excise tax to the Maryland Department of Natural Resources, with a $5 floor and a $16,100 ceiling that took effect July 1, 2026. On a $100,000 purchase after that date the tax is $5,000, then add a $20 title fee and $70 for two-year registration. DNR, not the Comptroller, sets the receipt. Confirm the current cap, fees, and any credit on DNR’s boat registration page before you sign.
- How much is boat sales tax and registration in Maryland?
- The tax rule: 5% vessel excise, not retail sales tax
- Trade-in, dealer vs private
- No local overlay on the vessel excise
- Title, registration, documented decal, and lien fees
- Gifts, family, military, reciprocity, and documented vessels
- How to calculate Maryland boat tax
- What this page does not estimate
- Two complete buying examples
- FAQ
- Before you sign
How much is boat sales tax and registration in Maryland?
People type “Maryland boat sales tax” because that is how every other purchase feels. On the water, the bill is different. The State Boat Act charges an excise on the vessel you will use principally in Maryland. DNR collects it when you title and register, or a licensed dealer collects it at sale and remits it. The money goes to the Waterway Improvement Fund. The Comptroller’s sales-tax rate is the wrong number for this transaction.
The tax sits on purchase price or fair market value. Motors, spars, sails, and accessories that travel with the vessel are in the base. The trailer is not. If you bought the boat in the last three years, DNR looks at the bill of sale or title price. If the purchase is older, DNR uses the BUC Book average of low and high retail. That is why two similar hulls can produce different tax if one sale is fresh and the other is a three-year-old private transfer with no clean invoice.
Registration is a separate, flat companion cost. Maryland does not charge one two-year fee for a 16-foot skiff and another for a 40-foot cruiser. The published registration is $70 for two years for all lengths, and the documented-use decal is also $70. Those figures rose with the October 1, 2025 fee increase. Older “$24 registration” figures are stale.
| What you pay | Official amount | Who bills it |
|---|---|---|
| Vessel excise tax | 5% of price or FMV | Maryland DNR (or licensed dealer) |
| Minimum tax | $5 | DNR |
| Maximum tax (on/after July 1, 2026) | $16,100 | DNR |
| Title fee | $20 | DNR |
| Registration (2 years, all lengths) | $70 | DNR |
| Documented-use decal | $70 | DNR |
| Lien / security-interest filing | $15 | DNR |
| Voluntary non-motorized decal | $12 (up to 2 years) | DNR |
Example 1: $100,000 purchase in August 2026
Scenario: You buy a used cruiser for $100,000 after July 1, 2026, title it in Maryland, and register it for two years. No trade-in. Not a family transfer. Not documented.
Five percent of $100,000 is $5,000, so the cap does not save you anything on this boat. You still owe the title and registration on top of the tax.
Example 2: $400,000 yacht in July 2026
Scenario: You close on a $400,000 yacht in July 2026 and will use it principally in Maryland. Five percent of $400,000 is $20,000. That is not what Maryland bills.
The cap is the expensive myth to get right. An old $15,000 or $16,000 ceiling is wrong for a purchase on or after July 1, 2026. DNR’s current maximum is $16,100.
- Maryland DNR — Boat Registration (5% excise, min/max, fees, documented-use decal)
- COMAR 08.04.10.02 — 5% rate, $5 minimum, trade-in, 90-day use
The tax rule: 5% vessel excise, not retail sales tax
Maryland’s vessel excise is a statewide tax under the State Boat Act. Natural Resources Article §8-716 is the statute. DNR administers it. Licensed dealers collect it on retail sales and may keep a 1.2% collection allowance if they remit on time; you still pay the 5% on the taxable base. Private buyers pay at titling and registration. Either way, the Comptroller’s retail sales-tax schedule is not the form you use for the hull.
The tax is due within 30 days of the date liability arises. Miss that window and DNR adds a 10% penalty plus 1.5% interest per month. That clock is why a weekend handshake without a title appointment can get expensive even when the rate itself is simple.
Any vessel with mechanical propulsion used principally in Maryland is in the program. A Coast Guard documented yacht is not a free pass. If Maryland is the principal-use state, the excise still applies and you buy the documented-use decal instead of a standard registration. Out-of-state numbered boats may use Maryland waters for 90 days cumulative in a year without Maryland excise if principal use is elsewhere. After that, you are in Maryland’s system.
Example 1: $50 junker hits the $5 floor
Scenario: You take a $50 project boat from a neighbor so you can salvage the motor. Maryland still has a minimum excise.
The floor exists so a token price cannot wipe out the Waterway Improvement Fund charge. Title and registration still apply unless DNR tells you a specific exemption covers the hull.
Example 2: Documented yacht, same 5% rule
Scenario: A $100,000 documented vessel will live in a Maryland slip. Someone told you federal documentation skips state tax. DNR’s rule is the opposite for principal use here.
Documentation changes the sticker, not the 5% math. Ask DNR whether a Maryland title is also required on your documented file; the tax itself is not waived by the Coast Guard certificate.
- Maryland DNR — Boat Registration (principal use, documented vessels, 90-day out-of-state use)
- Natural Resources Article §8-716.1 — dealer collection, penalty, interest
Trade-in, dealer vs private
Trade-in is the other place Maryland buyers overpay in their heads or underpay at the desk. DNR allows a reduction only when you trade a vessel to a licensed dealer, the allowance is documented on DNR’s form, and the value does not exceed the BUC Book. A camper, motorcycle, car, or trailer traded toward a boat does not shrink the excise. A private-party swap does not get the dealer trade line.
On a dealer ticket, subtract the qualifying vessel trade from the purchase price, then take 5%, then apply the $5 minimum and the $16,100 cap. On a private sale, tax the price or fair market value with no trade subtraction. Licensed dealers collect; private sellers do not. If you buy from a private owner, you bring the tax to DNR when you title.
Example 1: Dealer $80,000 boat minus $15,000 vessel trade
Scenario: A Maryland dealer sells you an $80,000 boat. You trade a titled vessel the dealer values at $15,000, within BUC Book, on DNR’s form.
That $15,000 only works because it is a vessel traded to a licensed dealer. The same dollar on a truck would not come off the boat’s excise.
Example 2: Private $80,000 sale — no trade line
Scenario: The same $80,000 boat is a private sale. You also sell your old boat to someone else for $15,000. That is two transactions, not a DNR dealer trade-in.
Selling your old boat privately does not create a Maryland excise credit against the new one. Only the dealer vessel-trade path, on DNR’s form, reduces the base.
- COMAR 08.04.10.02 — trade-in limited to vessel value, BUC Book, DNR form
- Natural Resources Article §8-716 — dealer trade documentation
No local overlay on the vessel excise
Maryland counties do not add a local sales-tax percentage on top of DNR’s vessel excise. DNR’s fee list does not include a county or city vessel-excise add-on. A buyer in a Chesapeake county and a buyer in a western Maryland county both face the same 5%, the same $5 floor, and the same $16,100 cap. Local slip fees, marina tax on services, or property tax on a trailer are separate bills. They are not a hidden county boat-tax rate on the hull.
That is why this page does not ask for a county percentage. Inventing one would be the wrong model. If a county tax collector later bills something else on a trailer tag or personal property, that is a different office. The vessel excise you pay to title the boat is statewide through DNR.
Example 1: Same $60,000 boat, two Maryland counties
Scenario: Two buyers each pay $60,000 for similar boats in different Maryland counties. Neither has a trade-in. Both title after July 1, 2026.
The county name does not change the 5% line. Do not add a local sales-tax percent copied from a retail receipt.
Example 2: $200,000 boat still uses the statewide cap, not a county rate
Scenario: A $200,000 boat would be $10,000 at 5%. That is under the $16,100 cap. No Maryland county percentage is stacked on it.
High-value boats hit the statewide cap, not a county surtax. The cap is $16,100 from July 1, 2026, not a local extra.
- Maryland DNR — Boat Registration fee list (no local vessel-excise add-on)
Title, registration, documented decal, and lien fees
DNR’s companion fees are small next to a 5% tax on a six-figure hull, and they are easy to get wrong if you still have an old brochure. Title is $20. Two-year registration is $70 for every length on the current list. The documented-use decal is $70. Recording a security interest is $15. A voluntary non-motorized decal is $12 for up to two years. Those title and registration numbers reflect the increase that took effect October 1, 2025. Do not budget $24 for registration.
Registration and the documented decal are alternatives for principal-use boats, not a stack of both $70 charges unless DNR’s instructions for your file say otherwise. A lien filing is extra if a lender is on the title. The optional non-motorized decal is not a substitute for numbering a motorboat. Length does not change the $70 registration on DNR’s current all-lengths line; if you see a length-based chart from another state, ignore it for Maryland.
| Fee | Amount | When it applies |
|---|---|---|
| Title | $20 | Maryland title |
| Registration, 2 years | $70 | Numbered vessels, all lengths on DNR list |
| Documented-use decal | $70 | USCG documented, principally used in Maryland |
| Security-interest filing | $15 | Lien recorded with DNR |
| Voluntary non-motorized decal | $12 / ≤2 years | Optional; not a motorboat registration substitute |
Example 1: Everyday numbered boat, cash purchase
Scenario: A $25,000 private boat, not documented, no lien, titled and registered in Maryland after July 1, 2026.
The tax is still the large line. Fees are the $90 pair unless a lender needs the $15 filing.
Example 2: Documented boat with a recorded lien
Scenario: Same $25,000 value, but the vessel is documented and the bank files a security interest. Principal use is Maryland.
The $70 decal replaces the numbered registration in the usual documented principal-use path. The $15 lien charge is real when DNR records the interest. Ask DNR which combination of title paperwork applies to a documented file; do not skip the $1,250 excise.
- Maryland DNR — Boat Registration (title $20, registration $70, documented decal $70, lien $15, non-motorized $12)
Gifts, family, military, reciprocity, and documented vessels
Immediate-family transfers can zero the excise when they meet DNR’s conditions and you file Form B-105. DNR’s rule looks at Maryland title, a prior Maryland title, or prior Maryland tax paid on a documented vessel. “Immediate family” is the list in COMAR, not a handshake among cousins you hope will qualify. If your relationship is not on DNR’s list, do not assume $0. Ask DNR and use B-105 only when it fits.
Active-duty military members get a one-year exemption when they bring a vessel that is already registered out of state because of a duty transfer. A new purchase in Maryland is not covered by that one-year rule. Reciprocity can credit tax you already paid to another jurisdiction if that jurisdiction reciprocates and you prove the prior tax. Documented vessels remain in the excise when Maryland is principal use. Inheritance and other estate transfers are not a separate published “always $0” dollar on DNR’s boat page beyond the family B-105 path; bring estate papers to DNR and do not treat an heir transfer as automatically tax-free unless B-105 or another DNR exemption applies.
Example 1: Spouse transfer with Form B-105
Scenario: A Maryland-titled boat moves to a spouse who qualifies as immediate family. You file B-105 as DNR instructs.
The exemption is the paperwork path, not a verbal gift. Title or registration fees can still appear on the same visit.
Example 2: Military one-year bring-in vs a new purchase
Scenario A: You are on active duty, already registered the boat out of state, and bring it to Maryland because of a duty station change. Scenario B: After you arrive, you buy a new $80,000 boat at a Maryland dealer.
Moving a boat you already number elsewhere is not the same as buying a new hull in Maryland. DNR’s military note is limited to the bring-in year, not a blanket service exemption.
- Maryland DNR — Boat Registration (family B-105, military one-year, reciprocity, documented use)
- COMAR 08.04.01.01(B)(16) — immediate-family definition used with B-105
- Natural Resources Article §8-716(f) — reciprocity credit
How to calculate Maryland boat tax
Work the bill in this order. First decide whether you have a qualifying family B-105 transfer or a qualifying one-year military bring-in. If yes, the excise is $0 and you still ask DNR about title and registration. If no, start with purchase price, or with fair market value when DNR’s three-year / BUC Book rule applies. For a licensed-dealer sale only, subtract a qualifying vessel trade. Multiply by 5%. Raise the result to $5 if it is lower. Cut it to $16,100 if you are on or after July 1, 2026 and the raw tax is higher. Then apply a reciprocity credit only if you paid tax to a reciprocal jurisdiction and DNR accepts the proof. Add $20 title and either $70 registration or $70 documented-use decal. Add $15 if a lien is filed. Pay within 30 days or budget the 10% penalty and 1.5% monthly interest DNR assesses.
Walkthrough 1: Dealer purchase with vessel trade, August 2026
Scenario: Dealer price $80,000, $15,000 vessel trade, Maryland principal use, numbered (not documented), no prior out-of-state tax credit.
If the dealer also sold a trailer, that trailer is outside this vessel-excise base. DNR’s boat page excludes the trailer from the vessel tax; any tax or tag on the trailer is a different bill.
Walkthrough 2: Private sale of an older boat using fair market value
Scenario: You buy a boat that last changed hands more than three years ago. The handshake price is $8,000. DNR’s BUC Book average of low and high retail is $12,000. You title in Maryland in 2026.
When the purchase is recent (within three years), DNR uses bill-of-sale or title price instead. Bring both the contract and any BUC printout DNR asks for. This page does not guess a BUC number for a hull DNR has not valued.
- Maryland DNR — Boat Registration (price vs BUC Book, 30-day due date)
- COMAR 08.04.10.02 — minimum tax and trade-in
What this page does not estimate
This page estimates Maryland vessel excise and the DNR fees listed above. It does not price a trailer tag, marina liveaboard tax, storage, survey, insurance, dealer documentation charges, or a late-interest dollar until DNR applies 1.5% to your exact due date. It does not convert an out-of-state sales-tax receipt into a credit unless that other jurisdiction is reciprocal and DNR accepts the proof. It does not zero a gift to a relative who is outside COMAR’s immediate-family list. It does not treat a new purchase as military-exempt. It does not use the Comptroller’s retail sales-tax rate on the hull.
If your facts are a commercial passenger vessel, a dealer/broker resale affidavit, or a boat that will leave Maryland before principal use attaches, ask DNR. Those paths are real; ask DNR for the amount that applies.
Example 1: Late filing — penalty is official, interest needs DNR’s clock
Scenario: Tax on the boat is $5,000. You miss the 30-day window. Two months have passed since liability.
The 10% penalty is a published add-on. Interest is also published at 1.5% per month. How many days DNR counts, and whether they apply interest to tax only, is their worksheet, not a guess here.
Example 2: Trailer and dealer extras are not this excise
Scenario: Invoice shows $70,000 boat plus $6,000 trailer plus $495 dealer documentation.
Do not fold the trailer into the 5% vessel base. Do not treat a dealer office fee as a DNR title fee. The $20 / $70 / $15 figures are DNR’s list, not the dealer’s extras.
Two complete buying examples
These two files stack tax and DNR fees the way a Maryland closing actually feels: one mid-range dealer deal with a legal trade, and one high-value yacht that hits the 2026 cap.
Complete example 1: Dealer cruiser, vessel trade, numbered, August 2026
Scenario: Maryland dealer. Price $80,000. Vessel trade $15,000 on DNR’s form, within BUC Book. Not family, not military, not documented. You want a two-year registration and no lien filing.
If you had bought the same boat privately with no qualifying trade, the excise would have been $4,000 instead of $3,250. The $750 difference is the legal dealer vessel-trade, not a private swap.
Complete example 2: $400,000 documented yacht, July 2026, financed
Scenario: Purchase $400,000 in July 2026. Principal use Maryland. USCG documented. Bank records a security interest with DNR. No family exemption. No reciprocity credit on file yet.
Bring proof of any tax already paid in a reciprocal state if you want DNR to consider a credit. This page will not subtract an unverified out-of-state receipt. The cap, not 5% of $400,000, is the tax line that matters on this yacht.
FAQ
Is Maryland boat tax 6% sales tax?
No. It is a 5% vessel excise collected by DNR under the State Boat Act. The Comptroller’s retail sales tax is a different tax. Using 6% on a boat title file is the wrong rate.
What is the maximum Maryland boat tax in 2026?
On or after July 1, 2026 the maximum vessel excise is $16,100. Before that fiscal change the published maximum was $16,000. A $15,000 cap story is also stale.
How much is Maryland boat registration?
DNR lists $70 for two years for all lengths, after the October 1, 2025 increase. Documented principal-use boats use a $70 documented-use decal. Those are not the old $24 figure.
Do I pay tax if the boat is documented?
Yes, when the vessel is used principally in Maryland. Documentation does not cancel the excise. You buy the documented-use decal rather than a standard registration.
Does a trade-in lower Maryland boat tax?
Only a vessel traded to a licensed dealer, on DNR’s form, at a value that does not exceed BUC Book. Private sales and non-vessel trades do not get that subtraction.
Is there county boat sales tax in Maryland?
Not on DNR’s vessel-excise fee list. The 5%, $5 minimum, and $16,100 cap are statewide. Do not add a local percentage copied from a store receipt.
Are gifts and family transfers tax-free?
Immediate-family transfers that meet DNR’s conditions and use Form B-105 can pay $0 excise, including the $5 minimum. Relationships outside that COMAR list are not automatically zero. Ask DNR before you skip the tax line.
I paid sales tax in another state. Do I still owe Maryland?
Maryland may credit tax paid to a reciprocal jurisdiction if you were titled or numbered there, or documented with principal use elsewhere, and you prove the payment. If the other state is not reciprocal, ask DNR before you assume a dollar-for-dollar credit.
How long can I use an out-of-state numbered boat in Maryland?
DNR allows 90 days cumulative in a year for an out-of-state registered vessel whose principal use is elsewhere. After that, Maryland liability rules apply. Do not treat a summer of weekends as an open-ended visitor pass.
Before you sign
Write three numbers on the contract before you leave the dock: the taxable vessel price (or the BUC value DNR will use), the 5% excise after the $5 floor and the $16,100 cap, and the $20 plus $70 DNR pair (or $70 documented decal). If a dealer is taking a vessel in trade, make sure that trade is a vessel, on DNR’s form, not a car or trailer. If someone promises “no tax, it’s documented” or “military so it’s free” on a brand-new purchase, stop and read DNR’s page. If someone quotes 6% sales tax, they are in the wrong tax. Pay within 30 days. Then keep the DNR receipt with the title file.
- Maryland DNR — Boat Registration — https://dnr.maryland.gov/boating/Pages/registration.aspx
- COMAR 08.04.10.02 — 5% rate, $5 minimum, trade-in, 90-day use — https://www.law.cornell.edu/regulations/maryland/COMAR-08-04-10-02
- Natural Resources Article §8-716.1 — dealer collection, penalty, interest — https://law.justia.com/codes/maryland/natural-resources/title-8/subtitle-7/section-8-716-1/
This page estimates Maryland vessel excise and DNR fees from official figures current for 2026. Maryland DNR sets the amount you pay. It is not the Comptroller’s retail sales tax.