Maryland Boat Tax – 2015

It has been some time since I discussed the basic issues with how Maryland taxes boats and yachts.  The basics are that Maryland imposes a 5% tax on the purchase price or fair market value of any boat that is either purchased in Maryland or principally used in Maryland.  There are a variety of exceptions to tax.  A boat can be purchased in Maryland and taken out under affidavit for use in another jurisdiction.  A boat can purchased elsewhere and brought in for up to 90 days without taxation.  It can stay much longer without being taxed under certain special circumstances.   Below is a rough graphic showing which boats are subject to tax and when.  The most important initial consideration is whether the boat was purchased in Maryland.

Boat Tax Thought Map