Washington Vehicle Sales Tax & Fees [+Calculator]

https://www.findthebestcarprice.com/author-ftbcp

Geoff Cudd

Geoff Cudd

I am a serial entrepreneur and a consumer advocate. When I’m not helping car buyers, I love working on ventures that have a positive impact.

I run a cause marketing agency and serve on the board of Vayu Global Health where we are disrupting the medical industry and preventing the needless deaths of mothers and babies during childbirth.

Linkedin

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 Washington, 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 Washington.

How Much Is the Car Sales Tax in Washington?

The state sales tax on a car purchase in Washington is 6.8%. This number is a sum of the base state sales tax of 6.5% plus a 0.3% “motor vehicle sales/lease tax.”

However, this does not include any potential local or county taxes. The average local tax rate in Washington is 2.368%, which brings the total average rate to 8.868%.

As an example, if you were to purchase a new sedan at a purchase price of $20,000, then you will have to pay an additional $1,360 in sales tax.

How to Calculate Washington Sales Tax on a Car

You can calculate the sales tax in Washington by multiplying the final purchase price by .068%.

For example, let’s say that you want to purchase a new car for $40,000, you would use the following formula to calculate the sales tax:

$40,000 x.068 = $2,720.

This means that your sales tax is $2,720 on a $40,000 purchase price.

Calculate Car Sales Tax in Washington Example:

• Initial Car Price: $40,000
• Sales Tax Rate: 6.8%
• Trade-In Amount: $5,000
• Incentives/Rebates: $2,000

Sales Tax = ($40,000 - $5,000) * .068
Sales Tax = $2,380

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.

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

The sales tax is the same 6.8% on a used vehicle.

For example, if you were to purchase a used car for $15,000, then you will have to pay an additional $1,020 in sales tax.

Which County Has the Highest Tax? Which Has the Lowest?

The city with the highest car sales tax is Tacoma with a 10.4% tax on all cars.

The county with the lowest car tax is Pierce County with a combined total tax rate of 8.3%.

Car Sales Tax for Trade-Ins in Washington

You don’t have to pay sales tax on trade-ins in Washington. 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 $30,000 and your trade-in is worth $15,000. You will subtract the trade-in value by the purchase price and get $15,000. Therefore, your car sales tax will be based on the $15,000 amount.

Car Sales Tax on Private Sales in Washington

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

As an example, if you purchase a truck from a private party for $10,000, then you will pay 6.8% of that amount to the Washington DMV.

Tax on Rebates & Dealer Incentives

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

As an example, if you are purchasing a new car for $50,000 with a $5,000 rebate, you will pay sales tax on the full $50,000 final cost of the car.

Washington DMV/State Fees

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

A few of these fees include:

• Registration Fee: $50
• Plate Transfer Fee: $10
• Title Fee: $26

Washington 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, Washington law caps these fees at a maximum of $150.

When Sales Tax Is Exempt in Washington

There are a few instances in which a vehicle is exempt from sales tax in the state of Washington including:

• Sale to a nonresident
• Sale to military personnel currently stationed in Washington
• Sale to authorized Interstate Commerce Carriers (ICC)
• Sale to a member of a Washington Native American tribe
• Sale to a federal, state, or foreign government entity
• Gift of a car that has already had taxes paid on it

Washington EV Rebates & Incentives

Washington offers some EV incentives for folks who purchase electric vehicles.

The federal tax credit ranges from $2,500 to $7,500.

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 cars purchased in Washington?

The sales tax on cars purchased in Washington is 6.8%. However, this does not include any potential local or county taxes. The average local tax rate in Washington is 2.368%, which brings the total average rate to 8.868%.

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

Yes, you have to pay a 6.8% sales tax on a used car in Washington.

Which county in Washington has the lowest tax?

The county with the lowest car tax is Pierce County with a combined total of 8.3% tax.

Which city in Washington has the highest tax?

The city with the highest car sales tax is Tacoma with a 10.4% tax on all cars.

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

No, you do not have to pay sales tax on a gifted car in Washington.

How much is registration in Washington?

Car registration in Washington is $50.

Does a trade-in reduce sales tax in Washington?

A trade-in reduces sales tax in Washington. In other words, be sure to subtract the trade-in amount from the car price before calculating sales tax.

How can I avoid paying sales tax in Washington?

You do not have to pay car sales tax in Washington if you are a nonresident, have the car gifted to you by a family member, are military personnel stationed in Washington, are a member of a Washington Native American tribe, or using the car for government purposes.