How can you legally avoid Virginia’s car tax?

I don’t like the idea of paying tax on my car just for owning it. At the same time, I don’t want to break the law. Is there any way to legally avoid Virginia’s car tax?

Joshua Levy · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
There is no legal way to avoid paying
Virginia car taxes
People have tried to avoid the car tax by registering their cars in different states or lying about their circumstances. 
However, doing so will result in:
  • Fines of up to 25% of the initial tax rate 
  • 5% interest added to your taxes due each year they go unpaid
  • Possible jail time
To avoid these penalties, all
car owners must pay taxes at a rate determined by a combination of the following sales tax rates:
  • State sales and use tax: Standard rate of 4.15% or a minimum of $75 collected by the Virginia Department of Motor Vehicles (VA DMV) upon registration.
  • Annual local personal property tax: County taxes on the annual assessed value of your vehicle and collected by local municipalities.
View full answer 
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