ANNAPOLIS — The Comptroller of Maryland has announced changes are coming in 2026 to the regulations governing Maryland’s tire recycling fee and new tire fee.  

Effective Jan. 1, 2026, the tire recycling fee increases to $1 from 80 cents on the first sale of a new tire in the state by a tire dealer. Maryland will also implement a $5 new tire fee on Jan. 1 on the same sales.

The fees are imposed on the first sale of a new tire, including tires sold as part of a new or used vehicle, trailer, farm equipment, or similar machinery. The fee is not imposed on the sale of a new tire to an out-of-state wholesaler or an out-of-state retailer.

Tire sellers will report both the tire recycling fee and the new tire fee to the Comptroller of Maryland on the same return. Once administrative fees are deducted, revenue from the tire recycling fee will be allocated to the Used Tire Cleanup and Recycling Fund, and revenue from the new fire fee will be allocated to the Transportation Trust Fund.

The tire recycling fee may be adjusted every two fiscal years based on the Consumer Price Index, as determined by the Maryland Department of the Environment, and may not exceed $2 per tire.

The tire recycling fee was first imposed on Feb. 1, 1992. The rate for the tire recycling fee has been 80 cents per tire since April 1, 2005.

The changes will be published in the Maryland Register on Jan. 9 and comments will be accepted through Monday, Feb. 9 by email to CompMDLegal@MarylandTaxes.gov.