Sales tax on a car in VA: the gross sales price
Virginia's DMV collects a 4.15% motor vehicle sales and use tax (SUT) on the gross sales price, with a $75 minimum.[1] The DMV defines the gross sales price as the cost of the vehicle after rebates or incentives; it includes the dealer processing fee and is not reduced by a trade-in. Its own example: a $40,000 car with a $5,000 trade-in still has a gross sales price of $40,000, so the tax is $1,660.[1]
| Case | Tax | Share of price |
|---|---|---|
| DMV example: $40,000 car, $5,000 trade | $1,660.00 | 4.15% |
| $40,000 car, $5,000 trade, $899 processing fee | $1,697.31 | 4.24% |
| $32,000 car, $2,000 rebate | $1,245.00 | 3.89% |
| $12,000 used car, private sale | $498.00 | 4.15% |
| $1,200 older car (minimum applies) | $75.00 | 6.25% |
No trade-in creditBecause Virginia taxes the full price, a trade-in saves you nothing on tax there. Selling your old car privately does not change the tax either.
Private sales and older cars
In a private sale the price the seller writes on the title serves as the bill of sale. If a car less than five years old sells for more than $1,500 below its NADA trade-in value, the DMV asks for an affidavit (SUT-1A) explaining the price.[1]
Moving to Virginia
If you first title a car in Virginia that already has a valid out-of-state title and registration in your name, no SUT is due, but if you bought it within the last 12 months you must prove you paid sales tax elsewhere.[1]
Compare states on the car sales tax calculator, see financing with the car affordability calculator, or plan the yearly total with the cost of owning a car calculator.
Frequently asked questions
What is the sales tax on a car in Virginia?
4.15% of the gross sales price, or $75 if that is more.
Does Virginia give a trade-in credit on car sales tax?
No. The tax is on the gross price; the DMV example taxes a $40,000 car at $40,000 despite a $5,000 trade.
Is the dealer processing fee taxed in Virginia?
Yes. The DMV includes the dealer processing fee in the gross sales price.