Skip to main content

An Official Vermont Government Website

Vermont State Logo

Vehicle Taxation

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

Purchase: 

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

If the vehicle is currently registered/titled to you or your spouse out-of-state, tax is based on NADA clean trade-in book value and is due unless exempt.

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

If you are claiming the 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 a party to the 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. No additional tax will be due if the tax paid on an out-of-state registered vehicle was equal to or more than the Vermont tax rate.

Lease:

The tax will be calculated by the dealer/leasing company. A lease agreement or Vermont Dealer worksheet must be submitted with documents. If the individual purchases this vehicle at the end of the lease, they will pay tax on the "residual/lease end value" of the vehicle.

The registration application is received from a Vermont Dealer or a Vermont Dealer acting on behalf of the Lessor. A "Purchase and Use Tax Computation - Leased Vehicle" Form (form #VD-147) may be submitted in lieu of a copy of the lease agreement and dealer worksheet.

Original Acquisition Cost - Lease End Value = Purchase Price

The Purchase Price is the amount that will be taxed.

Tax Rate

Vehicle Classification 6% 9% Maximum
ATV X   N/A
Auto X   N/A
Motorboat X   N/A
Motorcycle X   N/A
Motorhome X   N/A
Short Term Vehicle Rental   X N/A
Trucks (10,099 lbs or less) X   N/A
Trucks (10,100 lbs or more) X   $2,075.00
All Other Vehicles X   $2,075.00

Download the PDF form to your computer and then open it with Adobe Reader

Title Sort descending ID# Description
Dealer Appraisal Form
VD-012
To apply for a lesser tax due at the time of registration when disagreeing with NADA value.
Lease Excess Wear & Tear / Excess Mileage Tax
VD-145
To document additional taxes collected as a result of excess wear and tear and/or excess mileage at the end of a motor vehicle lease contract.
Purchase & Use tax Exemption
VG-147
Used for organizations wishing to become certified as exempt from P&U tax
Purchase and Use Tax Computation - Leased Vehicle
VD-147
To be used only by Licensed Vermont Car Dealers.

FAQs

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.

TAGS: