Does Delaware Have Sales Tax on Cars?
No. Delaware does not impose a state sales tax on car purchases. Instead, the state charges a Motor Vehicle Document Fee—generally 4.25%—when you title/register the vehicle with the Delaware Division of Motor Vehicles. This fee functions much like a sales tax for vehicles, and you’ll also pay standard title, registration, and plate fees.
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How Delaware Taxes Vehicle Purchases
Delaware’s reputation as a “no sales tax” state holds true at the dealership—but vehicle buyers should budget for the state’s Motor Vehicle Document Fee, which is assessed when the car is first titled in Delaware. In practice, this is the principal tax-like charge on car purchases for Delaware residents, whether the vehicle is bought in-state or brought in from another state and titled in Delaware.
The Motor Vehicle Document Fee
As of 2025, Delaware’s Motor Vehicle Document Fee is typically 4.25% of the vehicle’s purchase price (or a valuation method accepted by the DMV). The fee is collected at first titling/registration in Delaware and applies to both new and used vehicles. This charge is separate from flat DMV charges such as title and registration fees.
Other DMV Costs You May See
Beyond the document fee, buyers should expect standard title, registration, and plate fees, which are flat amounts that vary by vehicle type and registration term. Dealers may also charge their own processing or documentation fees, and buyers must carry state‑required insurance before registering the vehicle.
Buying In-State vs. Out-of-State
If you buy in Delaware, you won’t pay a state sales tax at the point of sale; the DMV will collect the 4.25% document fee when you title the vehicle. If you buy out of state, the key is where the car is titled and registered. Many out-of-state dealers can avoid charging their state’s sales tax if the vehicle is being titled in Delaware, but rules vary by state (for example, delivery requirements or exemption forms). Once you bring the car to Delaware and title it, you should expect to pay Delaware’s document fee. If you’re moving to Delaware with a car already titled in your name, consult the Delaware DMV regarding any time-based or situational exemptions that may apply.
What To Budget For When Buying a Car in Delaware
The following list outlines typical cost components you should plan for when purchasing and titling a vehicle in Delaware. Exact amounts depend on your vehicle, transaction details, and dealer practices.
- Vehicle price (as negotiated with the seller)
- Delaware Motor Vehicle Document Fee (generally 4.25%)
- Title, registration, and plate fees (flat DMV charges that vary)
- Dealer documentation/processing fees (if applicable)
- Insurance premiums required for registration
- Optional add-ons (extended warranties, service contracts, accessories)
Tallying these items will give you a realistic out-the-door estimate. The document fee is the largest tax-like charge in Delaware and is applied at titling, not at the sales counter.
Key Takeaways
Use these quick points to understand how Delaware treats taxes and fees on car purchases.
- No state sales tax on vehicles in Delaware
- Expect a 4.25% Motor Vehicle Document Fee at first Delaware titling
- Standard title/registration fees apply in addition to the document fee
- Out-of-state purchases generally pay Delaware’s document fee when titled in Delaware; rules for avoiding another state’s sales tax vary by that state
- Confirm specifics with the Delaware DMV or your dealer before you buy
These points cover the most common scenarios for residents buying or bringing a vehicle into Delaware and help avoid surprises at registration.
Summary
Delaware does not levy a state sales tax on cars. Instead, you’ll pay a Motor Vehicle Document Fee—generally 4.25%—when you title the vehicle with the Delaware DMV, plus standard title and registration charges. If buying out of state, ensure the seller handles any tax exemptions correctly and plan to pay Delaware’s document fee at titling.
Is it worth going to Delaware to buy a car?
In addition to no sales tax, Delaware offers some of the lowest registration and titling fees in the region. The process is also streamlined when purchasing through a licensed dealership, as most handle the paperwork in-house.
Which state has no sales tax on cars?
Car tax rate by state
| States – alphabetical | Car tax rate | States – highest to lowest |
|---|---|---|
| Alaska | 0.00% | California |
| Arizona | 5.60% | Illinois |
| Arkansas | 6.50% | Indiana |
| California | 7.25% | Rhode Island |
How much is car sales tax in Delaware?
Is there a sales tax on automobiles? A. No. However, when you bring a vehicle into Delaware there is a one-time document fee, a.k.a. transfer tax of 4.25% of the purchase price or NADA book value, whichever is greater.
Can I buy a car tax free in Delaware?
Without a sales tax, Delaware consumers pay only the listed shelf or menu price when shopping at stores, restaurants, car dealerships, and other retailers. No additional taxes are added at checkout.
