Car Sales Tax in Washington
The average vehicle sales tax in Washington is a combined 8.841%
Written by Pat Roache
Reviewed by Jessica Barrett
Cars purchased in the state of Washington are subject to a 6.8% state sales tax, but county and local rates can add up to an additional 3.5% in sales tax. The state average for all vehicle sales’ taxes combined is 8.841%.
The price tag on a new car is only the base for what you could end up paying. Almost all vehicle purchases are subject to state and local sales taxes that vary greatly depending on where you buy your car. Washington is no exception, and buying in
Kennewick
versus buying in Seattle
could be a dealbreaker for your budget. Taxes, fees, and all the other details that go into your final car price in Washington can be a lot to navigate on your own. Luckily for you, the
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversHow much is the car sales tax rate in Washington?
Washington has a state sales tax rate of 6.5%, but the state adds another 0.3% in vehicle sale/lease tax, bringing the total starting tax rate up to 6.8%. County and local tax jurisdictions levy an additional 0.5% to 3.5% in vehicle sales tax depending on where you buy.
Cities in King, Pierce, and Snohomish counties collect the most in vehicle sales tax—up to 10.3%. You can find the best tax rates in Whakiakum and Skamania counties where the vehicle sales tax is as low as 7.3%. The state average combined vehicle sales tax comes out to 8.841%.
How are car trade-ins taxed in Washington?
You can often knock a few thousand dollars off your car’s starting price by
trading in an old vehicle
. In the state of Washington, a trade-in will do more than adjust your starting price—it will also adjust the taxable amount of your new car purchase. Let’s say you want to buy a
Toyota RAV4
worth $28,000 in Spokane but you bring your old Ford F-150
to trade in for a $3500 credit. You would only be taxed the Spokane rate of 9.3% on $24,500 of your purchase. The same does not apply to any rebates or incentives offered by your dealership. Taxes will be calculated on your purchase after accounting for the value of a trade-in but before any rebates or incentives are applied.
If you receive a $1,000 rebate on that Toyota RAV, you’ll still have to pay taxes on the total $24,500 value after trade-in.
How to calculate sales tax on a car in Washington
All that math can be a pain, so use a Washington sales tax calculator to help you get an idea of your new car’s price after tax. This tool will do the math for you—all you have to do is enter your car’s value after trade-in and the zip code of your dealership.
Remember to treat any calculations as estimates, as the actual sales tax on your car could vary depending on the differentiation between taxed goods and taxed vehicles.
Key Takeaway Add your local sales tax to the state vehicle sales tax of 6.8% to calculate the taxes on your vehicle purchase. The taxable amount of your vehicle includes price reductions from trade-ins but not from rebates or incentives.
MORE: Car loan in Washington 2022
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversExemptions from Washington car sales tax
Most car purchases in the Evergreen State conducted by Washington residents are subject to taxes at the state and local levels. However, there are several circumstances in which a car purchase may be exempt from taxes.
Here are some examples of exempt vehicle sales in Washington:
- Sale to a non-resident
- Sale to military personnel currently stationed in Washington
- Sale to authorized Interstate Commerce Carriers (ICC)
- Sale to a member of a Washington Native American tribe
- Sale to a federal, state, or foreign government entity
Buyers who meet any of the criteria outlined by the
Washington Department of Revenue
will often have to follow specific steps to receive their tax exemption. If you think you are exempt from Washington’s vehicle tax, you can
check the law here
for your qualifications and next steps.MORE: Car inspection in Washington
How to estimate Washington tax, title, and registration fees
Once you’ve accounted for tax in your car-buying budget, you’ll also need to account for additional fees. License plate transfer and registration fees are necessary to legally drive your vehicle. Your dealership will also charge a titling fee and documentation fee determined by its company policy.
You can estimate the total costs and fees for your Washington vehicle purchase with help from the averages listed below:
Expense | Average cost |
|---|---|
Sales tax | 5.624% |
Registration fee | $68.25 to $115.25 (depending on weight class) |
Title fee | N/a |
Plate transfer | $10 |
Documentation fee | Up to $150 |
MORE: Is car insurance tax deductible?
How to find affordable car insurance in Washington
You’ve paid all the fees and taxes, but there’s still one step left to drive your vehicle off the lot—
Washington minimum car insurance
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FAQs
How much is sales tax on a used car in Washington?
Used cars are taxed the same amount as a new car, which is 6.8% state sales tax plus the local vehicle sales tax. Taxation is based on the fair purchase price of the vehicle unless you can prove that the used vehicle has a lower value. Learn more on the Department of Licensing’s
website
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