Buying a car in Washington

Sales tax on a car in Washington

Washington charges a state sales tax of 7% on vehicle purchases.

Local sales tax varies by city and county and is added to the state rate.

The 7% state figure combines the 6.5% state retail sales tax with an additional 0.5% motor vehicle sales and use tax, which rose from 0.3% on January 1, 2026. In a private sale the buyer pays use tax when transferring ownership.

Does a trade-in lower the tax?

The value of a trade-in of like kind accepted by the seller at the time of sale is excluded from the taxable selling price.

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 $1,400. Without the trade-in it would be $2,100. Local taxes and fees are extra.

Dealer doc fees in Washington

A dealer may charge a documentary service fee of up to $200 per sale or lease. The fee must be disclosed in writing as negotiable, listed separately from the price, and not represented as required by the state.

The documentation fee is not taxed.

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 Washington State Department of Licensing. A dealer files the paperwork for the buyer. In a private sale the buyer has 15 days to transfer ownership; the penalty is $50 on the 16th day plus $2 per day after that, up to $125.

Also worth knowing

• The Washington Department of Revenue states that document service fees are not subject to sales tax.
• Cash paid back to the buyer on a trade-in does not reduce the taxable price, and a trade-in cannot reduce the tax on an extended warranty or service contract.
• A buyer may file a complaint if a dealer has not provided the title within 45 days of delivery.

Sources

1. Washington Department of Revenue: Motor vehicle sales/use tax (dor.wa.gov)
2. Washington Department of Revenue: Retail sales tax (dor.wa.gov)
3. Washington Department of Revenue: Auto dealers guide, Trade-ins (dor.wa.gov)
4. Washington Department of Revenue: Auto dealers guide, Miscellaneous (document service fees) (dor.wa.gov)
5. Revised Code of Washington 46.70.180: Unlawful acts and practices (app.leg.wa.gov)
6. Washington Department of Licensing: Buy and register a vehicle (dol.wa.gov)
7. Washington Department of Licensing: Use tax (dol.wa.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.