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Car Sales Tax in Vermont

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Brittni Brinn
· 4 min read
In Vermont, the state tax rate of 6% applies to all car sales, but the total tax rate includes county and local taxes and can be up to 7%. The average total car sales tax in Vermont is 6.156%.
When you’re out shopping for a new car, the location can make a difference in how much you’ll have to pay in sales tax. The state, county, and local car sales tax rates can mean the difference between scoring a deal and breaking the bank.
On top of Vermont’s car sales tax rates, you’ll have to factor in additional fees. But before you get stressed out by all these numbers, take a look at the guide below from
car insurance
super app
Jerry
! We’ll go over how much tax you can expect to pay and the additional fees that come on top of your new car’s basic sale price—plus, how you can save on your
Vermont car insurance costs
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How much is the car sales tax rate in Vermont?

The statewide car sales tax in Vermont is 6%. Whether you’re buying new or used, you’ll pay the same amount of tax. The county and local sales tax, however, may add more tax rate to your purchase. 
Out of Vermont’s 14 counties, only the following six have tax jurisdictions that charge more than the state rate:
  • Addison county
  • Bennington county
  • Chittenden county
  • Franklin county
  • Rutland county
  • Windham county
The local sales tax in these jurisdictions only add an additional 1% for a total of 7% car sales tax. In the rest of Vermont, you’ll only have to pay the state minimum of 6%.

How are car trade-ins taxed in Vermont? 

Instead of buying a new car outright, you can
trade in an old vehicle
to reduce the cost of your car purchase. In Vermont, the car sales tax doesn’t apply to the value of your trade-in vehicle, which means you’ll get the taxable value of your trade-in off of your new car as well. 
For example, if you trade in a
Toyota Avalon
for a $2,500 credit against the sale price of a
Honda CR-V
that costs $27,000 in
South Burlington
, you’ll only have to pay the 7% car sales tax on $24,500 of the purchase. 
Unlike a trade-in, if you have any dealership rebates and incentives, you’ll still have to pay sales tax on the price of your vehicle before the incentives come into effect.

How to calculate sales tax on a car in Vermont

You can get an estimate for how much you can expect to pay in car sales tax using an
online tax calculator
. Simply enter your dealership’s Vermont address and the price of the vehicle you want to estimate the sales tax.
Key Takeaway The statewide sales tax of 6% applies to most areas of Vermont. Some local tax jurisdictions may charge an additional 1%  tax on your car purchase. 

Exemptions from Vermont car sales tax

The following vehicle purchases, leases, and title transfers are exempt from car sales tax in Vermont: 
  • Government vehicles
  • Vehicles for a charitable or religious organization
  • Gifted vehicles
  • Vehicles with specialized controls to accommodate a driver with a disability
  • Vehicles already registered in another state
  • Vehicles owned by veterans
  • Rental vehicles
  • Transfer to trust
You can find more details about tax exemptions on
Vermont’s DMV website

How to estimate Vermont tax, title, and registration fees

In addition to sales tax, you’ll have a few more fees to factor into the purchase price of your new ride. The title and registration fees, license plate transfer costs, and documentation fees charged by your dealer will all add to your total expenses. 
Here are the average fees and taxes you can expect to pay when purchasing a car in Vermont:
Cost
Average cost
Sales tax
6.156%
Registration fee
$74 to $76
Title fee
$35
Plate transfer
$25
Documentation fee
$210
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How to find affordable car insurance in Vermont

Now that you’re all set with your new car purchase, you can make sure you get the best insurance coverage by using the
Jerry
app. 
Jerry is a top-rated car insurance comparison app that can find you affordable rates on the coverage you need. After you download the app and enter your information, Jerry will pull up personalized quotes from over 50 insurance companies. Jerry users save an average of $800+ a year on
car insurance
!
“When using
Jerry
, I just put in a bit of information, and they found lots of different quotes for me. I was paying $305 a month for 2 brand-new cars, but now I’m paying $150 a month for both with full coverage!” —Robin U.
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Compare insurance quotes from 50+ carriers with Jerry in under 45 seconds
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FAQ

New or used, you’ll pay the same 6% car sales tax rate in Vermont. Some tax jurisdictions will add 1% on top of that, so check your local rates to see if the extra charge applies.
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