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How much is sales tax on a car in Vermont?
Vermont car sales tax guide
Short answer: Vermont charges 6% state tax on vehicle purchases, about $1,800 on a $30,000 car. Source: state revenue/DMV rules, checked October 28, 2026; local taxes and fees may add.
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Start my dealVehicle purchases taxed at the state general sales tax rate only (0% county or municipal auto sales tax on vehicle purchases). Doc fee taxability rule (Vermont DMV — "Are dealer documentation fees taxable?" (32 V.S.A. § 8903)): the dealer documentation fee is part of the purchase price and subject to the 6% Purchase and Use Tax. Rebates and add-ons aren't modeled.
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Vermont car sales tax, at a glance: 6% state tax on vehicle purchases. Vehicle purchases taxed at the state general sales tax rate only (0% county or municipal auto sales tax on vehicle purchases). Trade-in credit: allowed. A $30,000 car owes about $1,800 in state tax, or $1,200 with a $10,000 trade-in.
Statutory Status: Reviewed. Base sales tax: Tax Foundation, Facts & Figures 2026, Table 18 (State & Local Sales Tax Rates), as of October 28, 2026. Vehicle rules: Best-effort, checked October 28, 2026.
Leasing or getting a rebate in Vermont?
Leases and rebates change the tax line on your quote. Here is how Vermont handles each, in plain English, with the official source for each. Compare it to the tax on your dealer's worksheet.
Leasing in Vermont
Tax up front on the selling price minus residual · 6%
6% purchase-and-use tax up front on (selling price minus residual); trade-in credit does not apply to leased vehicles.
Source: 32 V.S.A. §8902(4), §8903; VT DMV VD-147 (checked Oct. 20, 2026)
Manufacturer rebates in Vermont
Rebate comes off before tax
Since Sept. 1, 2025, manufacturer rebates reduce the taxable cost.
Since Sept. 1, 2025.
Example math: $1,000 rebate × 6.0% (state rate, as of Oct 2026) = about $60 less state tax (estimate; state rate only, local tax not included).
Source: Vermont DMV: Vehicle Taxation; 32 V.S.A. 8907 (checked Oct. 21, 2026)
Best pick for your situation
If you have a car to sell: trade it in at the dealer when the private-sale price is less than $600 higher. Vermont gives a trade-in credit, so a $10,000 trade cuts state tax on a $30,000 car from $1,800 to $1,200. If a private buyer would pay more than $10,000 + $600, selling privately comes out ahead.
The math:
- $30,000 car, no trade-in: $1,800 state tax at 6%
- $30,000 car, $10,000 trade-in: $1,200 state tax (trade-in rule: allowed)
- Vermont charges a statewide rate only (0% county or municipal auto sales tax on vehicle purchases; the local rate field stays at 0%).
Sources: Tax Foundation, Facts & Figures 2026, Table 18 (State & Local Sales Tax Rates) (October 28, 2026); vehicle rules best-effort from state DMV/revenue (Best-effort, checked October 28, 2026).
A situational guide based on published state tax and fee rules, not legal or financial advice. VaultRubric accepts zero dealer, lender, or affiliate compensation.
Your roadmap
- Enter the vehicle price and any trade-in above to see your exact statewide tax (0% county or municipal auto sales tax applies).
- Get a written trade-in offer and a private-sale estimate, then compare using the math above.
- Ask for the out-the-door price in writing with tax, doc fee and title listed separately.
- Verify the rate with the Vermont DMV or revenue department before signing; dealer quotes can be wrong.
- Plug the total into the to see the monthly payment.
Vermont car sales tax by price
| Vehicle price | State tax, no trade | With $10,000 trade-in |
|---|---|---|
| $15,000 | $900 | $300 |
| $20,000 | $1,200 | $600 |
| $25,000 | $1,500 | $900 |
| $30,000 | $1,800 | $1,200 |
| $40,000 | $2,400 | $1,800 |
| $50,000 | $3,000 | $2,400 |
| $60,000 | $3,600 | $3,000 |
Vermont charges a statewide rate only (0% county or municipal auto sales tax on vehicle purchases; the local rate field stays at 0%).
Sources & as-of dates
- Base sales tax: Tax Foundation, Facts & Figures 2026, Table 18 (State & Local Sales Tax Rates) (as of October 28, 2026).
- Vehicle-specific rates and trade-in rules: best-effort compilation from state DMV/revenue rules (Best-effort, checked October 28, 2026); e.g. Virginia DMV, Michigan Treasury Form 485, California CDTFA Regulation 1610.
- Local vehicle tax (no local vehicle tax): Vermont DMV, Purchase and Use Tax (retrieved October 28, 2026). Vermont's 6% purchase and use tax is statewide; local option sales taxes don't apply. Data file: vt.json.
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FAQ
How much is car sales tax in Vermont?
6% at the state level. Vehicle purchases taxed at the state general sales tax rate only (0% county or municipal auto sales tax on vehicle purchases). Vermont charges a statewide rate only (0% county or municipal auto sales tax on vehicle purchases; the local rate field stays at 0%). On a $30,000 car with no trade-in that's about $1,800 in state tax.
Does Vermont charge sales tax on a trade-in?
Yes. Vermont generally taxes the price minus your trade-in value, so a $10,000 trade-in on a $30,000 car cuts the state tax from $1,800 to $1,200. (Verified from state statute / DMV rules.)
Is Vermont's general sales tax the same as its car tax?
Vermont's statewide general sales tax is 6% (Tax Foundation, Facts & Figures 2026, Table 18 (State & Local Sales Tax Rates), as of October 28, 2026); the rate applied to vehicles is 6%.
Does Vermont add county or city tax on a car?
No. Vermont's 6% purchase and use tax is statewide; local option sales taxes don't apply. (Vermont DMV, Purchase and Use Tax).
Does this include the doc fee, title and registration?
No. Those vary by dealer, county, vehicle weight and value.
Is this tax advice?
No. Estimates from best-effort state rules, not tax or financial advice; confirm with your state agency or dealer.
How are car leases taxed in Vermont?
Tax up front on the selling price minus residual (6%). 6% purchase-and-use tax up front on (selling price minus residual); trade-in credit does not apply to leased vehicles. Source: 32 V.S.A. §8902(4), §8903; VT DMV VD-147.
Is a car rebate taxed in Vermont?
No, the manufacturer rebate comes off before tax. Since Sept. 1, 2025, manufacturer rebates reduce the taxable cost. Source: Vermont DMV: Vehicle Taxation; 32 V.S.A. 8907.
Educational auto deal, sales tax, doc-fee, and loan/lease math only — not legal, tax, or financial advice. Dealerships are independent sellers; verify all out-the-door figures on your written buyer's order before signing.