How Much Is Virginia Sales Tax on Cars?

Virginia charges a 4.15% Motor Vehicle Sales and Use Tax on car purchases and transfers, with a minimum tax of $75, calculated on the vehicle’s gross sales price at the time of titling. This rate applies whether you buy from a dealer or a private seller, and is distinct from the state’s general retail sales tax. Below, we explain how the tax is calculated, what’s included or excluded, common scenarios, and examples to help you estimate what you’ll pay.

What the car tax is in Virginia

Virginia does not apply the general retail sales tax to vehicle purchases. Instead, it levies a specific Motor Vehicle Sales and Use Tax (MVSUT) at 4.15% on the “gross sales price” of the vehicle, with a $75 minimum collected at titling. The tax is due when you title the vehicle in Virginia, which typically occurs at purchase or when you bring a vehicle into the state and title it here.

How Virginia calculates the tax

The tax is based on the “gross sales price,” which Virginia defines as the total price you agree to pay for the vehicle, subject to specific inclusions and exclusions. The items below outline what commonly affects the taxable amount.

• Included in the taxable amount: the vehicle’s agreed selling price and commonly the dealer processing fee, destination/freight charges, and factory/dealer-installed accessories listed on the buyer’s order.
• Trade-in credit: the value of a trade-in for another vehicle typically reduces the taxable amount (you pay tax on the net price after the trade-in allowance).
• Discounts vs. rebates: dealer discounts generally reduce the taxable price; manufacturer cash rebates typically do not reduce the taxable price.
• Excluded from the taxable amount: DMV title and registration fees, and finance charges. Optional products may be treated separately depending on how they’re sold and invoiced.
• Minimum tax: regardless of price, the minimum motor vehicle sales and use tax collected is $75.

These rules aim to standardize the tax base across transactions; the buyer’s order and DMV guidance ultimately control how each line item is treated.

Examples

The following examples illustrate common purchase scenarios and how the 4.15% tax and the $75 minimum work in practice.

• Dealer purchase with trade-in: A $30,000 car with a $2,000 dealer discount and a $5,000 trade-in allowance results in a taxable price of $23,000 ($30,000 − $2,000 − $5,000). Tax = 4.15% × $23,000 = $954.50.
• Private party purchase: You buy a car for $6,000 from an individual. Tax = 4.15% × $6,000 = $249; the $75 minimum does not apply because the calculated tax exceeds $75.
• Low-price transaction: You buy a $1,000 beater car. 4.15% × $1,000 = $41.50, but you’ll pay the $75 minimum.

Your actual tax may vary based on the DMV’s valuation if a declared sale price appears unreasonably low, and based on how specific items are listed on the buyer’s order.

Special cases and common questions

Private sales

Private-party purchases are taxed at the same 4.15% rate with the $75 minimum. If the reported price is unusually low, DMV may rely on a standard valuation to compute tax.

Gifts and certain transfers

Virginia generally exempts bona fide gifts (no money or other consideration exchanged) from the motor vehicle sales and use tax, but you must provide the required DMV documentation to claim the exemption.

Out-of-state purchases and new residents

If you bought a vehicle elsewhere and title it in Virginia, the 4.15% use tax is typically due at Virginia titling. A credit may be available for legally imposed sales/use tax paid to another state on the same vehicle, subject to Virginia DMV rules and documentation requirements. Rules for new residents and length of prior ownership can affect what you owe, so verify with DMV before titling.

Leased vehicles

For leases, the tax is generally paid at titling by the titled owner (often the leasing company) on the applicable vehicle price. The lessor commonly recovers that cost in your monthly payments or upfront charges—check your lease agreement.

Other costs you’ll see at the DMV (not sales tax)

Besides the 4.15% vehicle tax, Virginia collects several fees at titling and registration that are not part of the sales tax. Knowing these helps you budget the total “out-the-door” cost.

• Title fee and registration fee: standard DMV charges due at titling/registration; amounts vary by vehicle and plate type.
• Local personal property tax: most Virginia localities charge an annual property tax on vehicles; it’s separate from the purchase tax and billed by your locality.
• Highway Use Fee (for fuel‑efficient vehicles): some hybrids, EVs, and other fuel‑efficient vehicles owe an annual fee intended to approximate foregone fuel taxes.

These fees are independent of the 4.15% motor vehicle sales and use tax and can materially affect your overall ownership cost.

Where to confirm and get the latest

For the most current rules, definitions, exemptions, and required forms, consult the Virginia Department of Motor Vehicles. Start with:

Virginia DMV → Taxes & Fees → Motor Vehicle Sales and Use Tax, and Vehicle Titling resources. Dealers can also provide a written buyer’s order showing how your taxable amount is computed.

Summary

Virginia’s car tax is 4.15% of the vehicle’s gross sales price, with a $75 minimum, collected when you title the vehicle. Trade-ins usually reduce the taxable amount; dealer discounts generally reduce it while manufacturer rebates typically do not. The same rate applies to private sales, and credits may be available if you paid qualifying tax in another state. Always review your buyer’s order and confirm edge cases with DMV to ensure an accurate total.

How much is tax and title on a car in Virginia?

Vehicle sales and use tax 4.15% of sales price, minimum charge $75.00.

How do I calculate sales tax on a car in Virginia?

Virginia is required to collect a 4.15% Sales and Use Tax (SUT) at the time of titling whenever a vehicle is sold, and/or the ownership of the vehicle changes. The amount due is based on the vehicle’s gross sales price, or $75, whichever is greater.

Do you pay tax twice if you buy a car out of state?

Sales tax is almost always paid in the state you register the vehicle, not the state you buy it in, so you’ll still have to pay sales tax to register the car in your home state.

Is the Virginia general sales tax 7%?

Virginia’s general sales tax rate is 5.3%. Local jurisdictions can add to this rate, with rates ranging from 0% to 2.7%. Depending on local municipalities, the total tax rate can be as high as 7%.