Vermont car tax
Vermont has no yearly car tax. Cars are not taxed as property, so owners pay only registration fees. When you buy or register a car, Vermont charges a one-time 6% purchase and use tax.
No yearly car tax; only registration fees.
Buying a car in Vermont: one-time tax
Vermont motor vehicle purchase and use tax — 6%. Your trade-in is subtracted before tax.
Charged on the greater of the price or J.D. Power clean trade-in value. The $2,486 cap applies only to heavy trucks and some other vehicles, not to cars.
Registration and due dates
Car registration is $91 for one year or $167 for two years. Plug-in hybrids pay $135.50 and EVs pay $178 a year.
No yearly car tax. Registration renews every one or two years.
Cut what your car costs in Vermont
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
Does Vermont tax cars every year?
No. Vermont has no personal property tax on cars.
How is the Vermont purchase and use tax figured?
6% of the purchase price or the clean trade-in value, whichever is greater.
Do I pay Vermont tax if I move here with my car?
Usually not, if you paid tax in another state and owned the car before you moved. Check the DMV rules for credits.
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.