Skip to main content
An Official Vermont Government Website
Holiday Closure
All offices will be closed on Memorial Day - Monday, May 27.

Tax

Related to tax collected by DMV.

Gifts

Registering a used vehicle received as a gift

You must provide the original title in the donor's name to qualify for the gift exemption if the vehicle was registered or titled in another jurisdiction/state. If the vehicle was not titleable in the previous jurisdiction, you must provide the original (or a certified copy) of the registration certificate in the donor's name.

Tax

Purchase and Use Tax (32 V.S.A.)

Purchase: 

Purchase and Use Tax is due at the time of registration and/or title at the rate of 6% of the purchase price or the National Automobile Dealers Association (NADA) clean trade-in value, whichever is greater (see allowable credits and exemptions).

Subscribe to Tax

FAQs.

How can I estimate the tax due on a vehicle?

Click the ‘Estimate Tax Due on a Vehicle’ button at the center of the home screen or the ‘Estimate Tax Due on a Vehicle’ link under the Vehicle Inquiry section. Enter the type of vehicle and then the required information (e.g., VIN, salvage status, odometer reading, purchase date/price). Additionally, enter any trade-in vehicles that you would be reporting. Then click ‘Get Estimate’. The estimated tax due is displayed.

I bought a new car in Florida and paid "Vermont" tax. Now I have sold my old car, can I get a tax refund?

No, not from Vermont.

Several states, including Florida, will collect taxes equal to the rate of your home state. In this example, the Vermont tax is 6%, so they will charge you 6% tax. That tax money is not transferred to Vermont. The only way to get any portion of it refunded to you is to contact the state that collected the tax.

List of DMVs from other states.

I am gifting my vehicle to someone, can I also gift my plates to them to use?

No, you may gift your personally owned vehicle to anyone you choose, but the plates belong to you, not the vehicle. The new owner must apply for new plates and registration under their name.

Exception: some low-number plates can be transferred to a family member.

Are dealer documentation fees taxable?

The documentation fee, which represents a charge for the preparation and handling of sale documents regardless of whether or not the vehicle is financed, should be included in the overall purchase price of the vehicle and is therefore subject to the Purchase and Use Tax.