Virginia Vehicle Sales Tax: Rates, Exemptions, and Payment

The Virginia vehicle sales tax is 4.15% of the vehicle’s gross sales price, collected by the DMV when you title the car. If that calculation comes out below $75, Virginia charges a flat $75 instead.¹ The tax applies whether you buy from a dealership or a private party, and you cannot get a Virginia title without paying it in full.

How the Taxable Price Is Calculated

Virginia defines “sale price” as the total amount paid for the vehicle and any accessories, with no deduction for trade-ins or unpaid liens.² This is where buyers relocating from other states get caught. Buy a $35,000 car and trade in your old one for $10,000, and you still owe 4.15% on the full $35,000. Most states allow the trade-in to reduce the taxable amount. Virginia does not.

Manufacturer rebates and manufacturer incentive payments do come off the price before tax.² Dealer processing fees are part of the taxable price; title and registration fees are not.³

A worked example: you negotiate a $40,000 purchase price, the dealer adds a $500 processing fee, and the manufacturer applies a $2,000 rebate. Your taxable amount is $38,500. At 4.15%, you owe $1,597.75.

Different Rates for Different Vehicles

The 4.15% rate covers standard passenger cars, trucks, motorcycles, and motorhomes. Two categories fall outside it.

Heavy-duty vehicles with a gross vehicle weight rating above 26,001 pounds are taxed at zero percent, which effectively eliminates the SUT on large commercial trucks.¹

ATVs, mopeds, and off-road motorcycles are taxed at higher rates that depend on where the vehicle will be used: 5.3% in most of the state, 6% in localities within certain planning districts, and an additional 1% for vehicles used in the Historic Triangle. The $75 minimum does not apply to these vehicles.¹

Buying from a Private Seller

Private-party sales get extra scrutiny. If you buy a vehicle less than five model years old and the reported sale price is more than $1,500 below the current NADA Official Used Car Guide trade-in value, you must submit an Affidavit for Procurement of Title (Form SUT-1A) explaining the discrepancy. The DMV may assess tax based on the NADA value rather than what you actually paid.³ If your price is legitimately low because of mechanical problems or high mileage, document it.

For vehicles more than five model years old the process is simpler. If the seller did not write a price on the title, you can submit a Vehicle Price Certification (Form SUT-1) or a handwritten bill of sale showing the purchase price, year, make, model, VIN, date of sale, and both signatures.³

Who Qualifies for an Exemption

Virginia Code § 58.1-2403 lists more than two dozen exemptions. A few come up often.

Family Gifts

A vehicle given as a gift to a spouse, parent, son, or daughter is exempt. For gifts to a parent, son, or daughter, the exemption does not cover any unpaid loan balance the recipient takes on. If your parent gives you a car with a $5,000 lien still on it and you assume that debt, you may owe SUT on the $5,000.⁴ Transfers between siblings, grandparents, or in-laws do not qualify.

New Residents Bringing a Vehicle

Moving to Virginia with a car titled in another state, you can avoid the SUT in one of two situations: you have owned the vehicle for more than 12 months, or you have owned it for less than 12 months and can prove you paid sales tax on it in another state.⁴ Without that proof on a recent purchase, the DMV will tax the vehicle at its fair market value when you register.

Disabled Veterans

Veterans with a 100% service-connected, permanent, and total disability rating from the U.S. Department of Veterans Affairs can claim a SUT exemption on one vehicle. The vehicle must be a passenger car, SUV, or pickup truck with a gross weight of 10,000 pounds or less, titled in the veteran’s or spouse’s name. You can move the exemption to a replacement vehicle if you sell, but you cannot hold it on two vehicles at once.⁵

Active-Duty Military Stationed in Virginia

Active-duty servicemembers stationed in Virginia who keep legal residency in another state are protected by the federal Servicemembers Civil Relief Act; Virginia cannot impose its SUT on a nonresident servicemember’s vehicle simply because they are stationed here on orders. The Military Spouses Residency Relief Act extends similar protection to qualifying spouses. Claim the exemption by filing Form SUT-3 with documentation of your out-of-state domicile.

Government and Certain Nonprofits

Sales to the federal government, the Commonwealth of Virginia, or any Virginia political subdivision are exempt. So are churches buying buses designed for 10 or more passengers, and 501(c)(3) organizations that primarily distribute food, clothing, or shelter to people in need.⁴

Electric and Hybrid Buyers

EVs and hybrids pay the same 4.15% SUT as any other passenger vehicle. The difference arrives afterward. Virginia charges an annual Highway Use Fee because these vehicles pay little or no fuel tax. All-electric vehicles currently owe $131.88 per year. Hybrids pay a sliding amount tied to EPA fuel economy, from under $7 for a 25 MPG hybrid up to just over $100 for one rated near 100 MPG.⁶

The federal clean vehicle tax credits that once offset up to $7,500 on a new EV and $4,000 on a used EV are no longer available for vehicles purchased after September 30, 2025.⁷

Paying the Tax and What to Bring

You pay the SUT when you apply for a Virginia title. If you bought from a dealer, the dealer collects the tax at closing and remits it electronically. For a private purchase, you pay at a DMV customer service center along with a separate $15 titling fee.³⁸

There is no grace period. Virginia will not issue a title, and you cannot register or insure the vehicle here, until the tax is paid. Bring the assigned certificate of title. For a private sale of a car five or more model years old, bring a signed bill of sale or Form SUT-1. For a newer car priced more than $1,500 below NADA trade-in value, expect to file Form SUT-1A. If you are claiming an exemption, file Form SUT-3 with supporting proof — a VA disability letter, a receipt showing sales tax paid to another state, or military orders and domicile documents, depending on the category.⁹

1
Virginia Code Commission. Virginia Code 58.1-2402 – Levy
2
Virginia Code Commission. Virginia Code 58.1-2401 – Definitions
3
Virginia Department of Motor Vehicles. Motor Vehicle Sales and Use Tax
4
Virginia Code Commission. Virginia Code 58.1-2403 – Exemptions
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Virginia Department of Motor Vehicles. Disabled Veteran Sales and Use Tax Exemption
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Virginia Department of Motor Vehicles. 2025 Estimated Highway Use Fee Chart
7
Internal Revenue Service. Clean Vehicle Tax Credits
8
Virginia Department of Motor Vehicles. Title Your Vehicle or Trailer
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Virginia Department of Motor Vehicles. Purchaser’s Statement of Tax Exemption – SUT 3