Car ownership costs in Vermont

What it costs to own a car in Vermont beyond the sticker price - sales tax, annual registration, vehicle property tax, inspection requirements, and title fee.

State record source checked · 2026-Q2 Official source

Vehicle sales tax: 6%; Vermont levies a 6% Purchase & Use Tax on motor vehicles (32 V.S.A. Chapter 219), assessed at registration/title on the greater of the purchase price or the J.D. Power clean trade-in value. The value of a trade-in accepted by the seller is deducted from the taxable amount. Vermont's 1% local option tax does NOT apply to motor vehicles, so 6% is the flat statewide rate regardless of town. Tax is capped for vehicles over a certain weight class but 6% applies to passenger cars.; Sales tax: source checked · 2026-Q2 Official source
Annual registration fee: ~$89/yr; Per 23 V.S.A. § 361, the annual registration fee for a pleasure car is $89.00; a two-year (biennial) registration is $163.00. The fee is flat (not value- or age-based) for standard pleasure cars. Battery-electric vehicles pay an additional EV infrastructure fee equal to the base fee (extra $89/yr); plug-in hybrids pay an extra $44.50/yr. Note: older fee calculators still cite $76, which is outdated; the current statutory fee is $89.; Registration fee: source checked · 2026-Q2 Official source
Vehicle property tax: No vehicle property tax; Vermont does not impose an annual ad valorem/personal property tax on vehicles; the only state vehicle tax is the one-time 6% Purchase & Use Tax paid at registration/title.; Vehicle property tax: source checked · 2026-Q2 Official source
State inspection: Required; Vermont requires an annual periodic safety inspection for nearly all vehicles, plus an OBD emissions test for gasoline vehicles 16 model years and newer (and diesel vehicles 16 years and newer at/under 8,500 lbs), administered by the DMV.; Inspection rule: source checked · 2026-Q2 Official source
Title fee: ~$42; One-time fee at purchase. Amount may vary.
Example: $35,000 vehicle: Sales tax: $2,100; + $89/yr registration + no property tax

How state fees affect your car's true cost in Vermont

When you buy a vehicle in Vermont, the first state cost you'll face is the sales tax of 6%. On a $35,000 vehicle, that's roughly $2,100 due at the time of purchase — in addition to the dealer's price.

After the purchase, Vermont charges an estimated $89 per year to register the vehicle. Per 23 V.S.A. § 361, the annual registration fee for a pleasure car is $89.00; a two-year (biennial) registration is $163.00. The fee is flat (not value- or age-based) for standard pleasure cars. Battery-electric vehicles pay an additional EV infrastructure fee equal to the base fee (extra $89/yr); plug-in hybrids pay an extra $44.50/yr. Note: older fee calculators still cite $76, which is outdated; the current statutory fee is $89.

Vermont does not impose a personal property tax on vehicles — which is a meaningful advantage over states that do, where owners can pay 0.5%–2% of the vehicle's value annually.

Vermont requires periodic vehicle inspections. Vermont requires an annual periodic safety inspection for nearly all vehicles, plus an OBD emissions test for gasoline vehicles 16 model years and newer (and diesel vehicles 16 years and newer at/under 8,500 lbs), administered by the DMV. Inspection fees are typically $20–$70 depending on the station and vehicle type.

Calculate your full 5-year ownership cost in Vermont

The TCO calculator pre-fills Vermont's sales tax and registration fee. Add your purchase price, loan terms, fuel type, and insurance to see the complete picture.

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Frequently asked questions

What is the car sales tax in Vermont?

The vehicle sales tax rate in Vermont is 6%. On a $35,000 vehicle that works out to roughly $2,100 at the time of purchase. Vermont levies a 6% Purchase & Use Tax on motor vehicles (32 V.S.A. Chapter 219), assessed at registration/title on the greater of the purchase price or the J.D. Power clean trade-in value. The value of a trade-in accepted by the seller is deducted from the taxable amount. Vermont's 1% local option tax does NOT apply to motor vehicles, so 6% is the flat statewide rate regardless of town. Tax is capped for vehicles over a certain weight class but 6% applies to passenger cars.

How much is vehicle registration in Vermont?

The estimated annual vehicle registration fee in Vermont is around $89 per year. Per 23 V.S.A. § 361, the annual registration fee for a pleasure car is $89.00; a two-year (biennial) registration is $163.00. The fee is flat (not value- or age-based) for standard pleasure cars. Battery-electric vehicles pay an additional EV infrastructure fee equal to the base fee (extra $89/yr); plug-in hybrids pay an extra $44.50/yr. Note: older fee calculators still cite $76, which is outdated; the current statutory fee is $89.

Does Vermont have a vehicle property tax?

No. Vermont does not impose an annual personal property tax on vehicles. Vermont does not impose an annual ad valorem/personal property tax on vehicles; the only state vehicle tax is the one-time 6% Purchase & Use Tax paid at registration/title.

Is a vehicle inspection required in Vermont?

Yes. Vermont requires periodic vehicle safety (and in some areas emissions) inspections. Vermont requires an annual periodic safety inspection for nearly all vehicles, plus an OBD emissions test for gasoline vehicles 16 model years and newer (and diesel vehicles 16 years and newer at/under 8,500 lbs), administered by the DMV.

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