Motor Vehicle Sales and Use Tax

Virginia is required to collect a 4.15% Sales and Use Tax (SUT) at the time of titling whenever a vehicle is sold, and/or the ownership of the vehicle changes.

The amount due is based on the vehicle's gross sales price, or $75, whichever is greater.

What is the Gross Sales Price?

The gross sales price of a vehicle is the cost of the vehicle after any rebates or incentives are applied. It includes the dealer processing fee, but does not include any other price reductions, such as credit for trade-ins, unpaid liens or other unpaid credits.

For example...

You buy a new car from a dealer for $40,000, and trade in your old car for $5,000.

Even though you're only paying $35,000 for the new car, the gross sales price is still $40,000.

Drive a Moped?

Visit the Mopeds page to learn about their SUT requirements.

Drive an ATV or Off-Road Motorcycle?

Visit the ATV/Off-Road Motorcycle page to learn about their SUT requirements.

Collecting the SUT Tax

Visit the Mopeds page to learn about their SUT requirements.

Exemptions from the SUT Tax

For a complete list of exemptions, visit Code of Virginia Exemptions. Certain exemptions require proof of your exemption status and a completed Purchaser's Statement of Tax Exemption (SUT3) to indicate the reason for exemption.

If you are titling your vehicle in Virginia for the first time and you hold a valid title or registration in your name by another state or a branch of the United States Armed Forces, you will not have to pay the SUT. However, if you purchased the vehicle within the last 12 months, you must provide proof that the SUT was paid elsewhere in order to be exempt in Virginia.

Certain disabled veterans of the United States Armed Forces or the Virginia National Guard may be eligible for a SUT exemption on the purchase of a vehicle, if that vehicle is owned and used primarily by or for the qualifying veteran. In order to qualify, the U.S. Department of Veterans Affairs must determine the veteran has a 100% service-connected, permanent and total disability.

Learn more at dmvNOW.com/VetExemption.

Calculating the SUT Tax

For transactions between private individuals

The sales price entered by the seller on the title certificate is a bill of sale.

However, you may be required to submit another form of a bill of sale under the following circumstances:

If the vehicle is more than 5 years old, and the seller has not entered the sales price or an incorrect sales price was entered on the title, the Vehicle Price Certification (SUT 1) or a handwritten bill of sale may be submitted. The handwritten bill of sale must be signed by the seller and the buyer and include the purchase price, year, make, model, vehicle identification number and date of sale.

If the vehicle is less than 5 years old (based on the model year), you must provide an Affidavit for Procurement of Title (SUT-1A) to DMV at the time of titling. The SUT-1A is required when the sales price is not within a $1,500 variance of the current trade-in value as listed in the NADA Official Used Car Guide.

For purchases from a dealer or manufacturer

They calculate the SUT for you.