Vehicle Taxation

Purchase and Use Tax

Purchase and Use Tax is due at the time of registration and/or title at a percentage of the purchase price or the average trade-in value (NADA), whichever is greater, minus value of trade-in vehicle or any other allowable credit.

If the vehicle is currently registered/titled to you or your spouse or party to a civil union out-of-state, tax is based on NADA average trade-in book value, and is due unless exempted.

If you believe that the vehicle’s value is less than book value, you may submit a Vermont Dealer Appraisal Form.

If you are claiming tax credit for a vehicle registered to you or your spouse or party to a civil union out-of-state, please send a copy of the Registration Certificate in your name or your spouse’s or party to a civil union name and complete section 7 of the application. You may be required to submit legal documentation that you and your spouse or party to a civil union were married or became party to civil union at the time the tax was paid out-of-state. You should also be prepared to submit documentation that the tax was paid and the amount of tax paid. Credit will be given for the purchase and use or sales tax paid on this vehicle to another jurisdiction. If tax paid on an out-of-state registered vehicle was equal to or more than the Vermont tax rate, no additional tax will be due.

Tax Rates

  • 6% Sales & Use Tax
    • ATV
    • Motorboats
    • Snowmobiles
  • 6% (Net Taxable Cost)
    • Autos (Cars & Trucks)
    • Motorcycles
    • Trailers
    • Trucks (10,099 lbs or less)
    • Trucks (10,100 lbs or more) - $2,075 maximum
    • All other vehicles - $2,075 maximum
  • Other
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Vermont Department of Motor Vehicles
120 State Street
Montpelier, VT 05603-0001

Monday-Friday: 7:45am-4:30pm
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