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Tax

Related to tax collected by DMV.

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.

Credits & Refunds

A tax credit/refund may be available within three (3) months before or after purchasing a new vehicle.

A tax credit may be applied toward the tax due at the time of registration for a vehicle registered to you and sold three (3) months before the purchase. A tax refund may be applied for when a vehicle is registered to you and sold within three (3) months after purchasing a different vehicle. Contact the Department of Motor Vehicles for further information.

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.

Certification of Tax Exemption

To request exemption of tax because the tax was paid to another state, the vehicle was received as a gift, the vehicle is equipped with altered controls or a mechanical lifting device for a disabled person, or the vehicle was transferred from an individual or business to a business controlled by the transferor. Form VT-014 replaced VT-013, VT-029 & VD-050 in July of 2022.
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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.