Overview
That book-value floor applies to dealer and private-party sales alike - there's no exemption for buying from a neighbor at a friendly price. What is fully exempt is a genuine gift between immediate family (spouse, parent, child, sibling, grandparent, grandchild), which pays $0 tax. New residents who already paid tax on the vehicle in another state get a credit for what they paid, owing only the gap up to Vermont's 6%.
01 - Official fees
Vermont car sales tax fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Standard rate | 6% | dealer and private sales alike |
| Taxable base | max(price, J.D. Power value) − trade-in | |
| Qualifying family gift | $0 | spouse, parent, child, sibling, grandparent, grandchild |
| New resident credit | difference only | if tax already paid elsewhere is below 6% |
| Heavy vehicle cap (>10,099 lbs) | $2,486 max | |
| Appraisal-based relief | Form VD-012 | licensed dealer or appraiser |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with the Vermont DMV - counties can add small local fees.
03 - Same state, other costs
More Vermont vehicle costs
04 - Common questions
Vermont car sales tax FAQ
Why did Vermont tax me on more than my private-sale price?
Vermont compares your price to the vehicle's J.D. Power (formerly NADA) average clean trade-in value and taxes 6% of whichever is higher. A $6,000 private sale on a car with a $9,000 book value gets taxed on $9,000 unless you get a Dealer Appraisal Form documenting the lower condition-based value.
Is a gift to my adult child really tax-free in Vermont?
Yes, if no money, property, or assumed loan changes hands and the vehicle is registered to the donor in Vermont. Qualifying relationships under 32 V.S.A. § 8911(8) are spouse, parent, child, sibling, grandparent, and grandchild - the recipient files Form VT-014 (Certification of Tax Exemption) with the title application.
What about gifts to a cousin, niece, or friend?
Those don't qualify for the exemption - Vermont taxes them like any other transfer, 6% of the higher of a stated price (even $0) or the J.D. Power book value. Only the specific relationships in the statute qualify.
I already paid sales tax when I bought this car in Massachusetts - do I pay Vermont's 6% too?
You get credit for what you paid. If Massachusetts charged 6.25%, you owe nothing further. If you paid a lower rate, or a flat fee, or nothing at all, you owe Vermont the difference up to its 6% - there's no refund of the extra if the other state charged more, and no credit for tax you never actually paid.
Does trading in my old car lower the Vermont tax?
Yes, at a dealership - the trade-in value is subtracted after Vermont picks the higher of your price or the new vehicle's book value. Private-party trades between two individuals don't come with the same documented trade-in credit.
Is there any way around the book-value comparison besides an appraisal?
Not really - it's built into the statute for every private and dealer sale. The Dealer Appraisal Form (VD-012), completed by a Vermont-licensed dealer or licensed appraiser, is the only recognized way to substitute a lower, condition-based value for the standard book figure.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.