Vermont Car Sales Tax Calculator (2026)

• Vermont charges a 6 percent Purchase and Use Tax on the purchase price or the J.D. Power clean trade-in value, whichever is greater.
• Local Option Tax does not apply to motor vehicles subject to the Purchase and Use Tax, and autos have no maximum tax.
• No Vermont source says whether a manufacturer rebate lowers the Purchase and Use Tax, so the calculator assumes it does not; with a rebate, your tax may be lower than shown.

Purchase and Use Tax

6%

Local tax

None on vehicles

Trade-in

Full credit: reduces the taxable price

Manufacturer rebate

Taxed: tax is figured before the rebate

Figured with Vermont's rules for a buyer from a dealer.

• Used car, no trade-in$1,080

  $18,000 price. Taxed on $18,000.

• New car with a trade-in$1,500

  $35,000 price, $10,000 trade-in. Taxed on $25,000. The trade-in saves $600.

• New car with a trade-in and a rebate$1,800

  $45,000 price, $15,000 trade-in, $2,000 rebate. Taxed on $30,000. The trade-in saves $900. The rebate does not lower the tax.

These examples treat the agreed price as the taxable price. Where a state uses a book value instead, the tax can differ.

The calculator covers a car bought from a dealer. These rules apply to other ways of buying or bringing a car to Vermont.

Buying from a private seller

The 6% Purchase and Use Tax is figured on the purchase price or the J.D. Power clean trade-in value, whichever is greater. If the car is worth less than the J.D. Power value, the buyer may submit a Vermont Dealer Appraisal form. (dmv.vermont.gov, checked Nov 10, 2026)

A car received as a gift

A car given to the donor's spouse, parent, child, sibling, grandparent or grandchild (including in-laws and step-relatives listed by DMV), or to a trust for them, is exempt if it was registered or titled in the donor's name. A transfer involving any payment does not qualify, and the exemption is denied if the application lists a lienholder. (dmv.vermont.gov, checked Nov 10, 2026)

Moving to Vermont with your car

A new resident's car is valued with J.D. Power at registration, and sales or Purchase and Use tax paid to a previous state is deducted from the 6% Vermont tax; if that tax was lower, the difference is due. No credit is given for property or excise tax. (dmv.vermont.gov, checked Nov 10, 2026)

Buying outside Vermont

Sales or use tax paid to another state by the applicant, or by the applicant's spouse at the time, is credited against the 6% Vermont tax; if it was less, the difference is due. Proof includes the other state's title and a cancelled check to that state's motor vehicle department. (legislature.vermont.gov, checked Nov 10, 2026)

Active-duty military

If a buyer sells their previous car after buying a new one, the sale price can reduce the taxable cost only if the sale happens within three months; for National Guard or U.S. Armed Forces members, that period is extended for time spent outside Vermont on activation or deployment plus 60 days after return. A car a veteran buys with U.S. Department of Veterans Affairs financial assistance is exempt with an approved VA Form 21-4502. (legislature.vermont.gov, checked Nov 10, 2026)

Paying late

If the Purchase and Use Tax is not paid as required, a penalty of 1% of the taxable cost or $150, whichever is smaller, is added to the tax due. (legislature.vermont.gov, checked Nov 10, 2026)

Vermont is tied for 24th lowest of all 50 states and the District of Columbia for tax on a $30,000 car. See all states.

Tax on a $30,000 car before trade-in, in nearby states. You generally pay tax based on where you register the car.

• New Hampshire$0
• Vermont$1,800
• Massachusetts$1,875
• New York$2,100 – $2,663

• All car calculators
• Sales tax calculators by state
• Car sales tax by state
• Trade-in tax credit by state
• Car cost by state
• Vermont out-the-door price
• Auto loan calculator

• Massachusetts car sales tax
• New Hampshire car sales tax
• New York car sales tax