Vermont Vehicle Sales Tax & Fees [+ Calculator]

Vermont Sales Tax

It’s exciting to buy a new (or new for you) car, but it’s also far from cheap.

Things like sales tax and other fees are often forgotten about in the excitement of making a new car purchase. But in Vermont, you’ll need to be prepared to spend additional money on these extra costs.

Here’s what to expect when it comes to taxes and fees in the state of Vermont.

How Much Is the Car Sales Tax in Vermont?

How Much Is Vermont Sales Tax

The state sales tax on a car purchase in Vermont is 6%. Therefore, you will be required to pay an additional 6% on top of the purchase price of the vehicle.

However, this does not include any potential local or county taxes.

The average local tax rate in Vermont is 0.156%, which brings the total average rate to 6.156%.

How to Calculate Vermont Sales Tax on a Car

You can calculate the sales tax in Vermont by multiplying the final purchase price by .06%.

For example, let’s say that you want to purchase a new car for $30,000, you would use the following formula to calculate the sales tax:

$30,000 x .06= $1,800

This means that your sales tax is $1,800 on a $30,000 purchase price.

Calculate Car Sales Tax in Vermont Example:

  • Initial Car Price: $30,000
  • Sales Tax Rate: 6%
  • Trade-In Amount: $5,000
  • Manufacturer/Dealer Rebate: $2,000

Sales Tax = ($30,000 - $5,000 - $2,000) * .06
Sales Tax = $1,380

Remember that the total amount you pay for a car (out the door price) not only includes sales tax, but also registration, and dealership fees.

Vermont Car Sales Tax Calculator

Do I Have to Pay Sales Tax on a Used Car?

Yes, in Vermont you must pay the car sales tax on a used vehicle. The sales tax rules remain the same whether the car is new or used.

Still, purchasing a used car is a wise choice for many. The overall price will be lower, which means you will pay less in sales tax than with a new vehicle.

Vermont Highest and Lowest TaxWhich County Has the Highest Tax? Which Has the Lowest?

Several counties have a sales tax rate of 7% (maximum). They include Addison, Bennington, Chittenden, Franklin, Rutland, and Windham counties.

Several counties have a sales tax rate of 6% (minimum). They include Caledonia, Essex, Grand Isle, Lamoille, Orange, Orleans, and Windsor counties.

Car Sales Tax for Trade-Ins in Vermont

Trade Ins VermontYou don’t have to pay sales tax on trade-ins in Vermont. In other words, be sure to subtract the trade-in amount from the car price before calculating sales tax.

As an example, let’s say you are purchasing a new SUV for $35,000 and your trade-in is worth $10,000. You will subtract the trade-in value by the purchase price and get $25,000. Therefore, your car sales tax will be based on the $25,000 amount.

Car Sales Tax on Private Sales in Vermont

A sales tax is required on all private vehicle sales in Vermont.

Tax on Rebates & Dealer Incentives

Tax on Dealer Incentives Vermont

You do not have to pay tax on dealer and manufacturer rebates in Vermont. In other words, be sure to subtract the rebate/incentive amount from the car price before calculating sales tax.

As an example, if you are purchasing a new car for $30,000 with a $5,000 rebate, you will pay sales tax on the $25,000 cost of the car.

Vermont DMV/State Fees

There are some other state and DMV fees associated with the purchase of a vehicle in Vermont.

A few of these fees include:

  • Registration Fee: $76 (gas-powered or diesel-powered)
  • Registration Fee: $74 (electric)
  • Title Fee: $35
  • Plate Transfer Fee: $25

Vermont Dealership Fees

Dealerships apply extra fees, sometimes referred to as “doc fees,” with the sale of the car.

Though these fees vary based on the dealership, the average fee in Vermont is $210, with no statewide limit on how much dealerships can charge.

When Sales Tax Is Exempt in Vermont

Vermont Tax Exemptions

Much like every state, Vermont has some sales tax exemptions for vehicle sales. Exemptions include:

  • You receive the vehicle as a gift from a spouse, parent, child, grandparent, or grandchild.
  • If you inherited the vehicle.
  • You receive the vehicle in a divorce.
  • You receive the vehicle from an individual’s revocable trust.

Vermont EV Rebates & Incentives

Vermont offers a $500 rebate on a new or used electric vehicle purchase. This is on top of the up to $7,500 rebate offered by the federal government.

 

Tax information and rates are subject to change, please be sure to verify with your local DMV. 

Frequently Asked Questions

What is the sales tax on a car purchased in Vermont?

The sales tax on a car purchased in Vermont is 6%. As an example, if you purchase a new SUV for $60,000, then you will have to pay $3,600 in sales tax to the Vermont DMV.

Do I have to pay sales tax on a used car in Vermont?

You will have to pay a 6% sales tax on a used vehicle purchase. For example, if you are purchasing a used truck for $30,000, then you will pay an additional $1,800 in car sales tax.

Which county in Vermont has the lowest tax?

Several counties have a sales tax rate of 6%. They include Caledonia, Essex, Grand Isle, Lamoille, Orange, Orleans, and Windsor counties.

Which county in Vermont has the highest tax?

Several counties have a sales tax rate of 7%. They include Addison, Bennington, Chittenden, Franklin, Rutland, and Windham counties.

Do I have to pay sales tax on a gifted car in Vermont?

You do not have to pay sales tax if the vehicle is gifted to you from a spouse, parent, child, grandparent, or grandchild.

How much is registration in Vermont?

  • Car Registration Fee: $76 per year (gas-powered or diesel-powered vehicles)
  • Car Registration Fee: $74 per year (electric-powered vehicle).
  • Car title fee: $35 (required for vehicles 15 years or newer).

Does a trade-in reduce sales tax in Vermont?

You can reduce your sales tax with a trade-in. As an example, if you purchase a new SUV with the price of $50,000 and your trade-in is worth $15,000, then your sales tax will be based on the $35,000.

How can I avoid paying sales tax in Vermont?

The following events are not taxable when it comes to vehicle transfers:

  • If you inherited the vehicle.
  • You receive the vehicle from an individual’s revocable trust.
  • You receive the vehicle in a divorce.
  • You receive the vehicle as a gift from a spouse, parent, child, grandparent, or grandchild.