California car tax
California charges a yearly Vehicle License Fee (VLF) of 0.65% of the car's value as part of DMV registration. The DMV bases the value on the purchase price and reduces it each year on a fixed schedule. California has no separate local car property tax.
California VLF, R&TC §10752. Value = purchase price (resets when a used car is bought) × DMV schedule: 100, 90, 80, 70, 60, 50, 40, 30, 25, 20, then 15% from year 11. Billed with registration renewal along with registration, CHP, and transportation improvement fees.
California car tax calculator
- $25,000 × 0.65% = $162.50
Towns value cars from pricing guides (average retail or trade-in), not what you paid. Your bill may be prorated for months you owned the car.
Car tax in California by car value
| Car value | Yearly tax | Per month |
|---|---|---|
| $10,000 | $65 | $5 |
| $15,000 | $98 | $8 |
| $20,000 | $130 | $11 |
| $25,000 | $163 | $14 |
| $30,000 | $195 | $16 |
| $40,000 | $260 | $22 |
| $50,000 | $325 | $27 |
| $75,000 | $488 | $41 |
Buying a car in California: one-time tax
California sales/use tax — 7.25%, plus local sales tax where you live. Trade-ins don't reduce the tax.
The 7.25% statewide base includes 1.25% local. District taxes can raise the total to about 10.75%. Trade-ins are NOT deducted.
Registration and due dates
The base registration fee is about $74, plus the CHP fee (about $34) and the value-based Transportation Improvement Fee ($38–$228). Many cars also pay a smog abatement fee or the ZEV fee.
Paid every year with DMV registration renewal, by the expiration date on your renewal notice.
Cut what your car costs in California
Car tax is set by your town, but your loan and insurance aren't. Refinancing a car loan at a lower rate often saves more each year than the tax itself.
Questions
What is the California VLF?
A yearly fee of 0.65% of the car's DMV value, paid with registration. It is deductible as a personal property tax on a federal itemized return.
How does DMV value my car?
It starts from the price paid and keeps 90% in year two, 80% in year three, and so on, down to a 15% floor. The schedule starts over when the car is sold.
Does California give sales tax credit for a trade-in?
No. Sales tax applies to the full price before any trade-in.
Sources
Last checked October 14, 2026. Rates are for passenger cars owned by individuals; leased, business and specialty vehicles can differ. Confirm with your tax collector or commissioner of the revenue.