Car Sales Tax in Virginia
Car purchases in Virginia are taxed at the state and local level at a combined average of 5.624%.
Written by Pat Roache
Reviewed by Jessica Barrett
The car sales tax in Virginia starts at 4.15% with a minimum of $75 at the state level, but taxes at the county and local levels can add up to 2.7%. The average combined tax rate on a car sale in Virginia is 5.624%.
Building a budget is one of the most important steps before going to the dealership when shopping for a new car, but failing to account for taxes could sabotage your financial plans. The taxes collected on your car vary greatly by location, and it’s easy for these extra costs to sneak up on you if you don’t do your research in advance.
Prepping for your next vehicle purchase in the Old Dominion? Look no further—the
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How much is the car sales tax rate in Virginia?
The Commonwealth of Virginia has a standard sales tax of 4.15% on all vehicle purchases. County and local municipalities can collect up to 2.7% in additional taxes depending on where you buy your vehicle, bringing the state combined average up to 5.624%.
The tax maxes out at 7% in James City County and York County including the cities of
Williamsburg
, Yorktown
, and Poquoson
. Most of the state’s major cities like
Chesapeake
, Norfolk
, and Virginia Beach
have a combined tax rate of 6%, but the lowest rate can be found at 5.3% in the northwest counties bordering West Virginia
.How are car trade-ins taxed in Virginia?
Trading in a car
is a great way to save money on a new car purchase, but in the state of Virginia, you’re required to pay tax on the original value of your new car. That means that your trade-in value will not affect the sales tax on your purchase.Let’s say you want to trade in an old
Ford F-150
for a $3,500 credit to put towards a new $28,000 Toyota RAV4
in Suffolk
where the combined sales tax is 6%. Although your new starting price for your RAV4 will be $24,500, you’ll still need to pay 6% on the original value of $28,000, bringing your final total up to $26,180.While trade-in values do not affect the taxable value of your vehicle purchase, rebates and incentives from the manufacturer do! If your new Toyota RAV4’s value is lowered to $24,500 after a manufacturer rebate or incentive, you will only have to pay the 6% sales tax on that reduced value, bringing your total to $25,970.
How to calculate sales tax on a car in Virginia
If you don’t feel like doing all that math on your own, you can get a good idea of the sales tax on your car purchase by using a Virginia sales tax calculator. All you have to do is enter your zip code and your car’s value after rebates and incentives to generate an estimated sales tax.
The calculator is a good tool to help you get an idea, but keep in mind that the actual sales tax on your car may vary depending on local policies around tax rates on vehicles and standard goods.
Key Takeaway Determine the total sales tax on your car by adding your county or city’s tax rate to the statewide standard of 4.15%.
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Exemptions from Virginia car sales tax
All car purchases in Virginia are subject to their local combined sales tax, but there is a long list of exemptions outlined under the
Code of Virginia Statute 58.1-2403
. If you qualify for a tax exemption listed in this statute, you can fill out a Statement of Tax Exemption
to present at your vehicle’s titling. Here are some examples of vehicle tax exemptions in Virginia:
- Vehicles sold to a local, state, or federal government agency
- Vehicles sold and registered to a member of a recognized Native American tribe in Virginia such as the Mattaponi and Chickahominy tribes
- Cars bought in a different state at least 12 months ago with proof of prior taxation
- A wide variety of circumstantial gifts or transfers
MORE: Car inspection in Virginia
How to estimate Virginia tax, title, and registration fees
Your budget is almost complete once you’ve accounted for your local sales tax, but there are still a few more costs to keep in mind. Once you’ve purchased your vehicle, you’ll need to pay the state fees for titling,
vehicle registration
, and a license plate transfer. The dealership where you buy your vehicle also charges documentation fees that are unregulated by the state.Here are some averages to help you estimate all of the additional costs associated with your Virginia car purchase:
Cost | Average cost |
|---|---|
Sales tax | 5.624% |
Registration fee | $30.75 to $109 |
Title fee | $15 |
Plate transfer | $10 |
Documentation fee | $490 |
The exact amount you’ll pay on registration depends on the type of vehicle you’re registering. Most vehicles have a registration fee ranging from $30.75 to $35.75, but you’ll have to pay the $109 fee if you’re registering an electric vehicle in Virginia.
MORE: Is car insurance tax deductible?
How to find affordable car insurance in Virginia
No car purchase is complete without car insurance, and in Virginia, you’ll need a policy that meets state minimum requirements. These costs are a lot easier to manage with a little help from the
trusted comparison tool
and expert insurance app Jerry
!First, Jerry finds the most competitive, affordable quotes for your unique insurance needs in less than a minute. All you have to do is pick your favorite, and Jerry takes care of the rest— securing your ultra-low rates, canceling your old policy, and checking your rates when it’s time to renew.
It couldn’t be easier, and the average Jerry user saves over $800 a year on car insurance.
“UsingJerryis a super straightforward process, and at each step, you can see exactly what coverage you’re paying for. Thanks to Jerry, I’m paying $900 less each year while keeping full coverage for my new car!” —Martin H.
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How much is sales tax on a used car in Virginia?
A used car purchase is taxed the same amount as a new car purchase, starting with 4.15% at the state level. The local or county tax rate where you plan to buy the car will also be included in the cost.
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