Maryland excise tax rates are set separately for each taxable category: cigarettes are taxed at $5.00 per pack of 20, other tobacco products at 15% to 70% of the wholesale price, alcohol at $0.09 to $1.50 per gallon depending on type, motor fuel at roughly $0.46 to $0.4675 per gallon, and vehicle titles at 6.5% of fair market value. Each category has its own deadlines and its own penalty structure, and the differences matter.
Tobacco Tax Rates
Cigarettes are taxed at $5.00 per pack of 20, one of the higher state rates in the country. The tax is collected through stamps that licensed wholesalers buy from the Comptroller and affix to each pack before selling to retailers.1Alcohol, Tobacco and Cannabis Commission. What Is the Current Maryland Excise Tax on Cigarettes?
Other tobacco products are taxed as a percentage of wholesale price rather than a flat per-unit amount:
- Most tobacco products: 60% of wholesale price
- Cigars: 70%
- Premium cigars: 15%
- Pipe tobacco: 30%
The gap between the 70% cigar rate and the 15% premium-cigar rate is large enough that product classification carries real money.2Maryland General Assembly. Maryland Code Tax – General 12-105 – Tax Rates Cigarettes sold to the federal government or its agencies are exempt.
Alcohol Tax Rates
Maryland taxes alcohol at fixed per-gallon rates by beverage type, applied at the wholesale level:
- Distilled spirits: $1.50 per gallon
- Wine: $0.40 per gallon
- Beer and mead: $0.09 per gallon
Reduced rates may apply in certain circumstances under the same statute.3Maryland General Assembly. Maryland Code Tax – General 5-105 – Tax Rates Federal excise taxes from the Alcohol and Tobacco Tax and Trade Bureau apply on top of the state rate, so total tax on a bottle or a case is higher than these numbers alone suggest.
Motor Fuel Tax Rates
The Comptroller adjusts motor fuel rates periodically. As of July 1, 2025, the combined applicable rates per gallon are:
- Gasoline: $0.46
- Diesel: $0.4675
- Aviation gasoline and turbine fuel: $0.07
The gasoline rate also applies to gasohol, propane, LNG, CNG, ethanol, methanol, and biodiesel blends.4Comptroller of Maryland. Motor Fuel Tax Rate FY2026 Revenue flows into the Transportation Trust Fund, which pays for road, bridge, and transit work. The federal gasoline tax of 18.4 cents per gallon stacks on top, putting total tax on a gallon of gasoline at roughly $0.64 before any local surcharges.
Vehicle Titling Tax
When a vehicle is bought or transferred and a new certificate of title is issued, Maryland charges a one-time excise tax, commonly called the titling tax. The standard rate is 6.5% of the vehicle’s fair market value. Rental vehicles are taxed at 3.5%. The minimum tax is $100 regardless of value.
New residents get credit for sales or excise tax already paid to another state on the same vehicle, and owe only the difference up to Maryland’s 6.5%. That credit is available if you’ve been a Maryland resident for no more than 60 days.5Maryland General Assembly. Maryland Transportation Code 15-608 – Collection and Remission of Vehicle Excise Tax
Genuine gifts between qualifying family members are exempt from the titling tax, but “genuine” is strict: no money, trade, or services can change hands. The MVA lists the qualifying relationships on its Gift Certification form. An aunt or uncle can gift a vehicle to a niece or nephew tax-free only if the aunt or uncle is at least 65. If any co-owner on either side of the transfer fails the relationship test, the exemption fails entirely and the full 6.5% applies.6Maryland MVA. Titling – Gift to Family Member The gift exemption can reach a vehicle currently titled in another state, but only if the family member making the gift previously titled it in Maryland.
Filing Deadlines
Each category has its own schedule with the Comptroller, and they don’t line up:
- Tobacco: Wholesalers file monthly and remit by the 21st of the following month.
- Alcohol: Monthly returns and payment are due by the 25th of the month following the reporting period.7Comptroller of Maryland. Form 317 Monthly Return of Alcoholic Beverage Sales
- Motor fuel: Dealers, distributors, and special fuel sellers file monthly by the last day of the following month. Motor carriers registered under IFTA file quarterly, with returns due April 30, July 31, October 31, and January 31.8Comptroller of Maryland. Motor Fuel Tax Filing and Refund
- Vehicle titling: One-time payment when the title is issued.
Electronic filing and payment run through Maryland Tax Connect.9Comptroller of Maryland. Business Tax Services
Penalties for Late or False Filing
The penalty depends on which tax you missed. For most Maryland taxes, late payment triggers a penalty of up to 10% of the unpaid amount. Alcohol and tobacco carry a steeper ceiling of up to 25%. Late motor fuel returns are hit with a flat $25 penalty instead of a percentage.10Maryland General Assembly. Maryland Code Tax – General 13-701 – When Return Not Filed or Tax Not Paid
Filing a false return carries a civil penalty of up to 100% of the tax that should have been reported.11Maryland General Assembly. Maryland Code Tax – General 13-703 – False Returns Willful fraud can bring criminal charges, with potential fines and imprisonment. Interest accrues from the original due date, so delay keeps compounding the cost.
Federal Excise Taxes on Top
Maryland rates are not the whole tax. Businesses in tobacco, alcohol, or fuel also owe federal excise tax on the same product. The federal cigarette tax is $50.33 per thousand small cigarettes, or roughly $1.01 per pack of 20.12Office of the Law Revision Counsel. 26 USC 5701 – Rate of Tax Federal alcohol taxes run considerably higher than Maryland’s: $13.50 per proof gallon on distilled spirits, $18.00 per barrel on beer, and $1.07 to $3.40 per wine gallon depending on type and carbonation.13TTB: Alcohol and Tobacco Tax and Trade Bureau. Tax Rates Federal gasoline tax is 18.4 cents per gallon and diesel is 24.4 cents, both unchanged since 1993.
Federal excise tax is reported quarterly on IRS Form 720, due April 30, July 31, October 31, and January 31.14Internal Revenue Service. Instructions for Form 720 Late Form 720 filings carry a federal penalty of 5% per month, up to 25%.15Office of the Law Revision Counsel. 26 USC 6651 – Failure to File Tax Return or to Pay Tax Alcohol and tobacco producers need a federal permit from the Alcohol and Tobacco Tax and Trade Bureau before they can legally produce or distribute; the application is free.16TTB: Alcohol and Tobacco Tax and Trade Bureau. Applying for a Permit and/or Registration