Last checked Nov 10, 2026
Buying a car in Vermont
The tax you will pay, whether your trade-in lowers it, what the dealer may charge for paperwork, and where to title and register. Taken from official Vermont sources.
- State tax on vehicles
- 6%
- Trade-in lowers tax
- Yes
- Doc fee limit
- Check with the state
- Deadline to title or register
- Check with the state
purchase and use tax
Sales tax on a car in Vermont
Vermont charges a state purchase and use tax of 6% on vehicle purchases.
The tax is 6% of the purchase price or the J.D. Power clean trade-in value, whichever is greater, and is due when the vehicle is registered or titled.
Does a trade-in lower the tax?
The value the seller allows for a trade-in that the buyer owned and had registered or titled is subtracted from the taxable cost.
Example, state tax only. On a $30,000 car with a $10,000 trade-in, the taxable amount is $20,000, so the state tax is about $1,200. Without the trade-in it would be $1,800. Local taxes and fees are extra.
Dealer doc fees in Vermont
We could not confirm from an official source whether the state limits the documentation fee. Ask the dealer for the fee in writing and compare it with other dealers.
The documentation fee is taxed along with the vehicle.
Whatever the rule, the fee is part of your out-the-door price. Ask for it in the written quote and negotiate the total, not the line. See dealer fees explained.
Title and registration
Titles and registrations are handled by the Vermont Department of Motor Vehicles. In most cases a Vermont dealer handles registration and titling for the buyer.
Also worth knowing
- The Vermont DMV states that a dealer documentation fee is part of the purchase price and is subject to the purchase and use tax.
- A vehicle without a valid Vermont inspection sticker must be inspected within 15 days of registration.
- New residents must register their vehicles within 60 days of moving to Vermont.
Sources
- Vermont DMV: Tax (Purchase and Use Tax) (dmv.vermont.gov)
- Vermont Statutes: Title 32, Chapter 219, Motor Vehicle Purchase and Use Tax (legislature.vermont.gov)
- Vermont DMV: Are dealer documentation fees taxable? (dmv.vermont.gov)
- Vermont DMV: Registration, New (dmv.vermont.gov)
Last checked Nov 10, 2026; next review by Feb 10, 2027. This page explains how the rules generally work and is not tax or legal advice. Rules change, so confirm with the state. Report an error.
Concierge
Rather not do this part yourself?
Tell us the car you want. A person finds it, checks it, negotiates the out-the-door price in writing, and lines up the paperwork. You approve every step.