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Do we pay sales tax on electric cars?

I want to invest in my first electric car, but a lot of the regulations surrounding them are confusing, and I’m afraid I might miss out on an incentive or exemption. For example, do you have to pay sales tax on an electric car?

avatar
Allison Stone · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
First of all, congrats on shopping around for a new
electric car
. It’s a very exciting time to be looking into electric cars, but you’re right that there’s a lot to learn in terms of incentives, and they tend to vary by state.
In
Washington
, new passenger cars, light-duty trucks, and medium-duty passenger vehicles that are dedicated Alternative Fuel Vehicles (AFVs) would be exempt from state motor vehicle sales and use taxes.
The same used to be true in
California
but hasn’t been the case since 2018. Since these laws are constantly changing and being updated, research in your state to find out what incentives and exemptions you’re eligible for.
If you’re thinking about buying your first electric car, save big on your
car insurance
plan through the
Jerry
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