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Purchase & Use tax Exemption

FAQs.

How can I estimate the tax due on a vehicle?

Visit myDMV and click the ‘Estimate Tax Due on a Vehicle’ button.

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.