Official fees
Vermont car sales tax chart
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 July 2026 against official sources (listed below). Always confirm the final amount with the Vermont DMV - counties can add small local fees.
- State rate
- 6% flat
- Local add-ons
- None
- Taxed on
- Higher of price or book value
- Family gift
- $0 tax
- New resident
- Credit for tax paid
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%.
Same state, other costs
More Vermont vehicle costs
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.
Receipts
Official sources
Every number on this page comes from these documents - check them yourself.
