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Vermont car sales tax at a glance
| Vermont | |
|---|---|
| Tax | motor vehicle purchase and use tax |
| State rate | 6% |
| Counties and cities add tax | No |
| Trade-in lowers the tax | Yes, tax is on the price minus the trade |
| Leases | Its own rule (see leasing below) |
Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.
How to work out Vermont sales tax on a car
Multiply the taxable price by the rate. In Vermont the trade-in comes off first.
A $30,000 car with a $5,000 trade: $25,000 x 6% = $1,500 at the state rate.
6% of the purchase price or J.D. Power clean trade-in value, whichever is greater, less credits. No local add-on (local option sales tax does not apply). Cap of $2,486 applies only to heavy trucks (10,100 lb+) and 'all other vehicles', not to autos.
Trade-ins
32 V.S.A. 8902(5)(B)(i): taxable cost excludes the value the seller allows on a motor vehicle accepted as part of the consideration, if the trade was owned and registered or titled by the purchaser. The credit does not apply when the new vehicle is leased.
Leasing a car in Vermont
Vermont: for a lease, the taxable purchase price is the original acquisition cost minus the lease-end (residual) value, i.e. the depreciation, taxed at 6% when the vehicle is registered (the dealer or lessor computes it on the lease worksheet). No trade-in credit on a lease. A lessee who buys out pays tax on the residual. The calculator taxes the price at signing, the nearest fit; check the lease contract. The lease calculator uses Vermont's method when you pick the state.
Dealer doc fees
No cap found.