How Much Is Virginia Vehicle Tax?

In Virginia, you’ll generally pay a 4.15% state Motor Vehicle Sales and Use Tax (minimum $75) when you title a vehicle, plus an annual local personal property (“car”) tax that varies by city or county—commonly about $3.00 to $5.00 per $100 of the vehicle’s assessed value—along with DMV registration fees and, for fuel‑efficient and electric vehicles, a Highway Use Fee recalculated each year. Below is a clear breakdown of what that means and how to estimate what you’ll owe.

What “Vehicle Tax” Means in Virginia

Virginia doesn’t charge a standard retail sales tax on vehicles. Instead, the state levies a dedicated Motor Vehicle Sales and Use Tax (SUT) when you title a vehicle, and local governments assess an annual personal property tax on vehicles garaged in their jurisdictions. Additional statewide fees—such as registration and the Highway Use Fee—round out the total cost of vehicle ownership.

At Purchase or When You Title a Vehicle

When you buy a vehicle from a dealer or a private party, or bring a vehicle into Virginia and title it here, the primary tax you’ll encounter is the state SUT, with a few nuances that affect how it’s calculated.

• State Motor Vehicle Sales and Use Tax (SUT): 4.15% of the vehicle’s gross sales price, with a minimum tax of $75. This applies when titling in Virginia.
• Private sales under 6,000 lbs: SUT is based on the sale price or the DMV-assessed value (often from industry guides), whichever is higher.
• Out-of-state purchases/titles: You generally still owe SUT upon Virginia titling. Some exemptions or special cases can apply; confirm with DMV if you’ve owned/titled the vehicle elsewhere before moving.
• Dealer processing fees and add-ons: These may be included in the taxable “gross sales price” used to calculate SUT.

In short, expect to pay 4.15% of the taxable price (but not less than $75) when you title the vehicle in Virginia, regardless of where you purchased it, unless a specific DMV exemption applies.

What You’ll Pay Each Year

Once your vehicle is titled and registered, ongoing taxes and fees depend on where you garage the vehicle and its fuel efficiency. Local personal property tax is typically the largest recurring item.

• Local personal property (“car”) tax: Set by your city or county—commonly about $3.00 to $5.00 per $100 of assessed value. The assessment is usually based on a January 1 valuation from a recognized guide (e.g., J.D. Power/NADA) using standard conditions, not your purchase price.
• State Personal Property Tax Relief (PPTRA): For qualifying personal-use passenger vehicles up to the first $20,000 of assessed value, the state subsidizes a portion of your local tax. Your locality sets the annual relief percentage; it varies by jurisdiction and year.
• DMV registration fee: A base annual fee (often around $30–$36 for standard passenger vehicles, depending on weight), plus any locality-specific registration/license fee if applicable.
• Highway Use Fee (HUF): Applies to fuel-efficient and electric vehicles to offset foregone gas taxes. The amount is recalculated annually by DMV; for battery-electric vehicles it’s a flat fee updated each year, and for high-mpg gas/hybrid vehicles it’s a formula based on your model’s MPG.

Together, these items form your ongoing cost of ownership. The car tax can be substantial for newer or higher-value vehicles, while PPTRA relief typically reduces the bill on the first $20,000 of value.

How to Estimate Your Annual Local Car Tax

You can approximate your yearly local personal property tax with a few pieces of information from your locality and DMV valuation sources.

1. Find your locality’s tax rate: Look up the rate expressed as dollars per $100 of assessed value (for example, $4.00 per $100).
2. Get your assessed value: Use your locality’s assessment notice or a January 1 vehicle value from a recognized pricing guide that your locality uses.
3. Apply the tax rate: Multiply the assessed value by the rate (converted to a decimal). Example: $20,000 assessed value × ($4.00 ÷ $100) = $800 before relief.
4. Factor in PPTRA relief: If your vehicle qualifies, apply your locality’s current relief percentage to the first $20,000 of assessed value, then subtract that relief from the pre-relief amount.
5. Add any local registration/license fees: Some localities charge an annual vehicle license fee in addition to the property tax.

This quick calculation won’t capture every local adjustment, but it will put you close to the expected bill. Always verify the final amount with your locality’s Commissioner of the Revenue or Treasurer.

Special Cases and Exemptions

Certain owners and vehicles may qualify for partial or full relief from the local personal property tax. Knowing these exceptions can prevent overpayment.

• Active-duty military and spouses: Under federal law (SCRA/MSRRA), nonresident service members (and qualifying spouses) domiciled elsewhere may be exempt from Virginia personal property tax on vehicles titled in their names.
• Business-use vehicles: Often taxed without PPTRA relief and may have different depreciation/valuation rules.
• Antique/collectible plates: Some vehicles with antique registration have restricted use and may receive favorable tax treatment; rules vary.
• Local adjustments: In recent years, some localities applied temporary assessment ratios or one-time credits to offset unusual used-car value spikes; such measures can change annually.

If you think you qualify for an exemption or special treatment, contact your locality early—many programs require timely applications or documentation.

Example: Typical Cost Snapshot

Here’s a simplified illustration to show how the pieces add up for a commonly financed purchase and the first year of ownership.

• Purchase of a $25,000 used car from a dealer: SUT ≈ 4.15% × $25,000 = $1,037.50 (meets the minimum).
• DMV title/registration: Base registration often about $30–$36 for a standard passenger vehicle, plus title and plate fees.
• First-year local car tax: If assessed at $23,000 on January 1 at a $4.00 per $100 rate, pre-relief tax ≈ $920. PPTRA relief then reduces the portion of tax on the first $20,000 based on your locality’s annual relief percentage.
• Highway Use Fee: If the vehicle is an EV or high-MPG model, add the DMV-calculated HUF for the registration year.

Your exact numbers will differ based on your locality’s rate, your vehicle’s assessed value on January 1, the local PPTRA relief percentage, and DMV’s current-year fee schedules.

Key Takeaways and Where to Check

Because the SUT is statewide while the personal property tax and relief are local, you’ll need two sources to confirm your total costs: Virginia DMV for titling/registration/SUT/HUF details and your city or county for the annual car tax rate, PPTRA relief percentage, due dates, and any local license fees.

Summary

Virginia’s vehicle tax at purchase is the state Motor Vehicle Sales and Use Tax of 4.15% of the vehicle’s taxable price (minimum $75). Every year thereafter, most owners pay a local personal property tax that commonly ranges around $3.00 to $5.00 per $100 of assessed value, reduced by state-funded PPTRA relief for qualifying personal-use vehicles, plus DMV registration fees and a Highway Use Fee for fuel‑efficient and electric vehicles. Verify current DMV fees and your locality’s tax rate and relief percentage to get an exact figure for your situation.