Starting July 1, 2025, MVA-Maryland drivers will encounter significantly higher vehicle registration fees as part of a broader effort to address the state’s growing transportation funding shortfall. The increases—some nearly double—are triggering frustration among residents already dealing with rising car prices, gas costs, and insurance premiums.
What’s Changing in MVA?
Previously, Maryland vehicle owners registered their cars for a two-year period. Now, drivers will have the option to register annually. While this may offer flexibility, it comes with increased costs:
- Cars under 3,500 pounds will now pay $110 per year, up from $67.50.
- Cars between 3,500–3,700 pounds pay $120 annually.
- Vehicles over 3,700 pounds now face a $161.50 annual fee, up from $93.50.
Electric and hybrid vehicle owners aren’t spared either. Beginning July 2025, electric vehicle (EV) drivers will pay an additional $125 surcharge, while plug-in hybrid owners will be hit with a $100 surcharge.
One driver, Twan Beasley, noted the irony: “I don’t pay the gas tax, but now my rate is going up anyway.”
Why the Sudden Hike?
These fee increases were included in the state’s latest budget and approved by the Maryland legislature earlier this year. Lawmakers are trying to fill a projected $2 billion deficit in the Transportation Trust Fund, which pays for road maintenance, public transit, and infrastructure upgrades.
The revenue from higher registration fees and surcharges is intended to stabilize the fund and finance upcoming transportation projects, including those from a recently passed $3 billion package.
Public Frustration Mounts
Drivers across Maryland are already feeling financially squeezed, and many expressed concern that these additional costs couldn’t come at a worse time.
“Everything is going up right now—gas, insurance, groceries—and now vehicle registration,” one resident said. “It’s just a bad time. People are watching where they spend.”
Another driver lamented, “Couldn’t they have done this incrementally? Instead of just doubling it at once?”
According to state officials, this is Maryland’s first vehicle registration fee increase since 2004. Still, many find the sudden price jump jarring. Compared to neighboring states, Maryland’s fees now look steep: Pennsylvania charges just $40, while Virginia is around $60.
Costs Beyond Registration
If you’re planning to buy a new car in Maryland, be prepared to spend even more. The excise tax—a percentage of a vehicle’s value—will increase from 6% to 7%, doubling the average registration cost from $100 to $200.
“The little people are under pressure,” one resident commented. “We’re all just trying to stay afloat.”
The Bottom Line
Maryland’s fee hike may be financially necessary, but it’s being felt at a deeply inconvenient time for many working families. With inflation and living expenses already high, this added cost burdens everyday drivers who rely on their vehicles for commuting, childcare, and more.
For those wanting to avoid annual fee shocks, the state still allows a two-year registration option—but it’ll cost you double upfront.
To learn more or calculate your specific fees based on vehicle type and weight, visit the Maryland Department of Transportation’s website.
Stay tuned with UState Pulse for more updates on how these changes affect Marylanders.