Legislative Update - Effective October 1, 2026

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Legislative update - Effective October 1, 2026 

Purpose

This bulletin is to inform the business community of the legislative updates that will take effect on October 1, 2026. 

Summary

1. Out of State Vehicles- Improper Registration - Effective October 1, 2026, new requirements related to Maryland residents registering vehicles in another state go in effect.

   Under this new law, title service agents or employees cannot sell, offer for sale, advertise, or facilitate the sale of vehicle registrations issued by another state to a Maryland resident.  The MVA is required to suspend the license of a title service agent or employee found in violation. 

   MVA will also start notifying Maryland residents with vehicles registered in another state. (Trailers, semitrailers, or pole trailers are exempt.) These vehicle owners will have 60 days to title and register their vehicles in Maryland, obtain a non-resident permit, or submit to MVA documentation explaining why they do not need to title and register their vehicle in Maryland.   

   1. Out of state residents who plan to keep a vehicle in Maryland for more than 60 days may apply for a non-resident permit for $27 and the permit will be valid for one year or until the vehicle registration expires, whichever comes first. 
      1. Please note, applications for these permits may be made at a MVA Branch Office or by mail. Development of an online request is underway. 
   2. Military service members and their dependents have the option to apply for a non-resident permit at no cost. 

   If the Maryland resident does not title the vehicle within the initial 60-day compliance period, a penalty of $7.00 per day will be assessed. The daily fine will stop when: 

   1. The vehicle owner titles the vehicle in Maryland 
   2. The vehicle owner obtains a non-resident permit
   3. The vehicle owner submits information explaining why the vehicle does not need to be titled in Maryland and MVA approves this submission or 
   4. Another 60 days have passed.  The maximum penalty is $420.00. 

   The vehicle owner’s information will be referred to the appropriate county attorney for additional civil action if the vehicle is still non-compliant once maximum penalty is reached. 

   MVA will also issue a tag pickup order for certain vehicles.  A tag pickup order will be placed on the record for vehicles registered out of state, owned by a Maryland resident who has maintained residency for greater than 60 days, and one of the following:

   1. The owner failed to comply with two or more traffic citations, including automated traffic enforcement systems. 
   2. The owner’s license or privilege to drive is suspended for child support. 
   3. The vehicle’s registration has, at any point, been suspended for a lapse of insurance for a period of 6 months or more.   

   Maryland residents who re-title their vehicles in Maryland by December 31, 2026, will be exempt from paying any excise tax.  Effective January 1, 2027, these vehicles will no longer be eligible for the “Return to State” transaction and will be required to pay excise tax. 

   These changes were made by Senate Bill 111 (Chapter 487 - PDF).

    

2. Professional Licensing Portability - Members of the Foreign Service and Spouses: Effective October 1, 2026, the MVA will allow a member of the U.S. Foreign Service or spouse who relocates to Maryland because of an assignment or detail and holds a license in another state to practice in Maryland for the duration of the orders if the member/spouse: (1) submits an application with proof of assignment or detail, (2) is in good standing by the license issuing agency, (3) actively used the license in last 2 years, and (4) complies with standards of practice, discipline and fulfillment of continuing education requirements.
   1. Customers will upload the required documents via the business portal, and the review will be completed by the Business Licensing & Compliance Division. 

   2. These changes were made by Senate Bill 418 - PDF (Chapter 493 - PDF) and House Bill 1120 - PDF (Chapter 492 - PDF).

       

3. Modernizing Civil Relief for Service Members Act - Effective October 1, 2026 the MVA will allow an active service member or spouse who relocates to Maryland because of orders and holds a license in another state to practice in Maryland for the duration of the orders if the member/spouse: (1) submits an application with proof of orders and other required documents, (2) is in good standing by the license issuing agency, and (3) has no disciplinary action, no pending investigation related to unprofessional conduct, and has not voluntarily surrendered the license while under investigation. MVA is authorized to conduct a criminal history check and issue a temporary license if the review process takes more than 30 days.
   1. Customers will upload the required documents via the business portal, and the review will be completed by the Business Licensing & Compliance Division.

   2. These changes were made by Senate Bill 242 - PDF (Chapter 694 - PDF).

       

4. Motor Vehicles and Marine Vessels - Transfer-on-Death Designations - Effective October 1, 2026, a beneficiary may be designated on a jointly owned vehicle.  Since the designation is made prior to the death of the individual or last surviving owner, the vehicle will not be considered part of the estate and Letters of Administration will not be required for transfer.
   • The vehicle must be currently titled in Maryland.
   • Only one beneficiary can be named.  The beneficiary can be either an individual or a business entity.
   • The designation of a beneficiary does not affect ownership until the death of the last surviving owner.
   • The owner(s) of the vehicle may choose to delete or change the designation of a beneficiary or sell the vehicle at any time prior to their death without the consent of the beneficiary.

   • Once a beneficiary is designated, a corrected title will be provided to the vehicle owner(s). All previously issued titles will be voided.

     These changes were made by Senate Bill 145 - PDF (Chapter 73 - PDF) and House Bill 174 - PDF (Chapter 72 - PDF).

      

5. Driver Skills Examination – Motorcycle Safety Awareness: MVA added questions related to motorcycle safety awareness to the non-commercial class C knowledge test.   No changes to the driver education curriculum were needed.  These changes were required by Senate Bill 0068 - PDF (Chapter 0539 - PDF).

If you have any questions, please contact us at 410-787-2952 or via email.