Virginia Vehicle Sales Tax: 4.15% With a $75 Minimum

The Virginia Department of Motor Vehicles collects the SUT when a vehicle is titled, whenever a vehicle is sold or its ownership changes. For purchases from a dealer or manufacturer the dealer works out the tax for you. For private sales the DMV has rules on proving the price.

The point that catches buyers is the base: it is the price after rebates and incentives, including the dealer processing fee, but with no credit for a trade-in, an unpaid lien or other unpaid credits.

Rate, Minimum and Gross Sales Price

The DMV states: "Virginia is required to collect a 4.15% Sales and Use Tax (SUT) at the time of titling whenever a vehicle is sold, and/or the ownership of the vehicle changes." The amount due is based on the vehicle's gross sales price, or $75, whichever is greater. The gross sales price is the cost of the vehicle after any rebates or incentives are applied. It includes the dealer processing fee, but does not include any other price reductions, such as credit for trade-ins, unpaid liens or other unpaid credits.

The first row follows the DMV's example: even though you pay $35,000 for the new car, the gross sales price is still $40,000. The other rows are our arithmetic.

Scope: the 4.15% rate and the $75 minimum are for motor vehicles that must be registered. The DMV treats mopeds, ATVs and off-road motorcycles on separate pages; its Vehicle Licensing Guide VLIC 4.620 says they are taxed at 6% in the Northern Virginia, Hampton Roads and Central Virginia areas and 5.3% elsewhere (plus 1% in the Historic Triangle), on the actual sales price with no minimum tax, and manufactured homes at 3%.

Private Sales and Proving the Price

• Title price: the sales price the seller enters on the title certificate is a bill of sale.
• Vehicle more than 5 years old: if the seller has not entered the price or an incorrect price was entered, you may submit the Vehicle Price Certification (SUT 1) or a handwritten bill of sale signed by seller and buyer showing the purchase price, year, make, model, VIN and date of sale.
• Vehicle less than 5 years old (by model year): you must give the DMV an Affidavit for Procurement of Title (SUT-1A) when the sales price is not within a $1,500 variance of the current trade-in value listed in the NADA Official Used Car Guide.
• Dealer or manufacturer purchases: they calculate the SUT for you.

Exemptions

• Most common: if you are titling the vehicle in Virginia for the first time and hold a valid title or registration in your name from another state or a branch of the US Armed Forces, you do not pay the SUT. If you bought the vehicle within the last 12 months, you must provide proof that the SUT was paid elsewhere to be exempt in Virginia.
• Disabled veterans: certain disabled veterans of the US Armed Forces or the Virginia National Guard may be exempt for a vehicle owned and used primarily by or for them (the DMV guide limits it to one vehicle per qualifying veteran), but the Department of Veterans Affairs must determine a 100% service-connected, permanent and total disability.
• Other exemptions: the DMV refers to the Code of Virginia for the full list and says some need proof and a Purchaser's Statement of Tax Exemption.

Official Sources

• Virginia Department of Motor Vehicles: Motor Vehicle Sales and Use Tax
• Virginia DMV: Vehicle Licensing Guide VLIC 4.620, Sales and Use Tax-Motor Vehicle Sales (revision 06/10/2024)