Washington adds a motor vehicle sales/use tax of 0.5% from 1 January 2026 (it was 0.3% through 31 December 2025) on top of regular retail sales tax, which is a 6.5% state rate plus a local rate (Washington Department of Revenue, read October 2026). On a $30,000 vehicle the additional tax is $150, before sales tax.
At a glance
Key Facts
Additional vehicle tax
0.5% from 1 Jan 2026
Before 2026
0.3%
State retail sales tax
6.5% plus local
Use tax applies
At registration, if sales tax was not paid
Luxury vehicle tax
Extra 8% on the part of the price above the deduction ($102,000 from 1 Jul 2026)
Introduction
The Washington Department of Revenue calls it an additional tax on all retail sales, leases and transfers of motor vehicles. It sits alongside the ordinary retail sales tax and funds transportation improvements. Sellers collect it at the time of sale; if sales tax was not paid, use tax applies at the time the vehicle is registered with the Department of Licensing.
This guide sets out the two layers, the date the additional rate rose, what is excluded, and the lease rule, and the separate luxury vehicle tax. The local sales tax rate depends on where the buyer receives the vehicle, so the examples leave it out rather than guess a figure.
Section 01
The Two Layers of Tax
The state rate of retail sales tax is 6.5%, and the Department says the local rate varies by city and/or county. The additional motor vehicle tax is separate: "Effective Jan. 1, 2026, the rate is 0.5% (0.005)." Through 31 December 2025 the rate was 0.3%.
Tax
Rate
Notes
State retail sales tax
6.5%
Local rate added, set by where the customer receives the vehicle
Additional motor vehicle sales/use tax
0.5% (0.3% through 31 Dec 2025)
On retail sales, leases and transfers of motor vehicles
The extra tax also applies to charges for extra features added before delivery, such as a tow hitch.
Section 02
Worked Example
Our arithmetic on a $30,000 vehicle price, leaving out the local sales tax and any fees:
Item
Amount
Price
$30,000
State retail sales tax at 6.5%
$1,950
Additional vehicle tax at 0.5% (2026)
$150
The same additional tax at the old 0.3%
$90
Increase from the 2026 change
$60
These are illustrations only. The local portion of sales tax comes on top and depends on location.
Section 03
Luxury Vehicle Tax on Expensive Vehicles
Since 1 January 2026 Washington also has a separate luxury motor vehicle tax: 8% on the sale or lease of a new or used motor vehicle priced at more than $100,000. The Department of Revenue says it is in addition to retail sales tax and the motor vehicle sales/use tax. The deduction is $100,000 through 30 June 2026, $102,000 from 1 July 2026 to 30 June 2027, and rises 2% each 1 July. For a purchase the taxable amount is the selling price plus any trade-in property, minus the deduction; for a lease it is the fair market value at lease inception, minus the deduction. Exemptions include commercial motor vehicles, vehicles over 10,000 lb gross weight rating other than motor homes, sales to nonresidents (from 1 July 2026) and recreational vehicles from 1 July to 31 December 2026. If the tax is not paid at purchase, it applies when the vehicle is registered with the Department of Licensing.
Our arithmetic: a $120,000 vehicle with no trade-in bought from 1 July 2026 to 30 June 2027 has a taxable amount of $18,000 and a luxury tax of $1,440, on top of the other taxes. The $30,000 examples above are below the threshold, so this tax does not apply to them.
Section 04
What Is and Is Not Covered
Covered: motor vehicles licensed for on-road use, including SUVs, recreational vehicles and motorhomes, plus demonstration, executive and service vehicles on which the dealership owes use tax.
Not covered: farm tractors, farm vehicles, off-road vehicles, non-highway vehicles, trailers and snowmobiles are outside the definition of a motor vehicle for this tax.
Subject to regular sales tax only: retail car rentals under the rental car tax, post-sale equipment and installation charged to the owner, maintenance agreements and warranties, and repairs.
Exemptions follow sales tax: a sale of a motor vehicle that is exempt from sales tax is also exempt from the motor vehicle sales/use tax, for example sales to carriers in interstate commerce, to the US Government, or to a Tribe or Tribal citizen.
Section 05
Private Sales, Out-of-State Purchases and Leases
Private or out-of-state purchase: if sales tax was not paid at purchase, use tax applies when the vehicle is registered with the Department of Licensing. This happens when a vehicle is bought from a private party or outside Washington.
Partial exemption for public safety tax: a partial exemption removes the voter-approved public safety component of the local sales tax on retail sales of motor vehicles and on the first 36 months of lease payments.
Long leases: leases that run beyond 36 months do not qualify for the partial exemption, so lessors use the regular rate and location codes for payments after the 36th month, and the motor vehicle sales tax still applies.
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Regular retail sales tax is a 6.5% state rate plus a local rate, and since 1 January 2026 an additional motor vehicle sales/use tax of 0.5% applies to motor vehicle sales, leases and transfers.
Q
What is the Washington motor vehicle sales/use tax rate?
0.5% from 1 January 2026. Through 31 December 2025 it was 0.3%.
Q
What is the extra tax used for?
The Department of Revenue says the funds finance transportation improvements.
Q
Do I pay tax on a private-party car purchase in Washington?
Yes: when sales tax was not paid at purchase, use tax applies when the vehicle is registered with the Department of Licensing, which happens with private-party and out-of-state purchases.
Q
Does the tax apply to trailers or off-road vehicles?
No. The definition leaves out farm tractors, farm vehicles, off-road vehicles, non-highway vehicles, trailers and snowmobiles.
Q
Is the extra tax charged on options added before delivery?
Yes. Charges for extra features added to a vehicle before delivery, such as a tow hitch, are subject to the motor vehicle sales/use tax.
Q
Is there an extra tax on expensive vehicles in Washington?
Yes. Since 1 January 2026 an 8% luxury motor vehicle tax applies to the part of the price of a new or used vehicle above a deduction of $100,000 (rising to $102,000 from 1 July 2026), in addition to sales tax and the motor vehicle sales/use tax.
Disclaimer:This guide gives general tax information for educational purposes and is not tax, legal or financial advice. Rules, forms and deadlines are set by the authorities named here and can change; check the official sources linked in this guide and talk to a qualified tax professional about your own situation.