Buying a car in Virginia

Every figure below is sourced to Virginia’s own revenue or motor vehicle publications and dated. Estimates only.

Virginia at a glance

State sales tax
4.15%
Local tax is added on top in most states — treat this as a floor.
Trade-in credit
No credit
You are taxed on the full price even when you trade a car in.
Dealer doc fee
Not confirmed
We have not confirmed a cap for this state, so we do not claim one.
Title and registration
$45.75
$15.00 title + $30.75 registration.

Virginia taxes a lease up front, not monthly

The whole sales tax on a lease is due at signing here rather than riding on each monthly payment. That is a different method, not a different rate, and it changes what you owe on the day — see the lease calculator above, which applies it.

Virginia taxes the car every year, not just at purchase

A recurring annual tax on the vehicle’s value applies here — assessed at 100% of value at a representative 4% rate. It never appears in a monthly payment and is easy to miss when comparing states.Virginia localities levy a recurring annual tangible personal property tax on vehicles, at rates each sets itself: Richmond $3.70 per $100, Virginia Beach $4.00, Loudoun $3.09, Fairfax $4.57. The 4.0% figure is Virginia Beach's actual published rate, chosen as a representative mid-range value rather than a computed average. Assessed value is normally the January J.D. Power clean trade-in or loan value. TWO CAVEATS: some localities have adopted temporary reduced assessment ratios in particular years, so confirm the current year for any specific locality; and the Personal Property Tax Relief Act subsidises the first $20,000 of assessed value, so the effective rate actually billed is lower than the nominal rate.

Local tax in Virginia

The 4.15% Motor Vehicle Sales and Use Tax is a single statewide rate collected by DMV at titling, with a $75 minimum, and there is no county or city add-on for ordinary vehicles. Localities do not layer a local sales tax onto a car purchase; they levy a separate recurring annual personal property tax instead. Different rates apply only to mopeds, ATVs and off-road motorcycles (6% in Northern Virginia / Hampton Roads / Central Virginia, 7.0% in the Historic Triangle, 5.3% elsewhere). The dealer processing fee IS part of the taxable price. A separate Highway Use Fee applies to fuel-efficient and electric vehicles.