Car Loan Calculator
How Virginia taxes car purchases
- State vehicle tax rate
- 4.15%
- Trade-in lowers the tax
- No
- Tax cap
- None
- Source
- Official source, checked 2026-10-05
These are the rules for a new car bought from a dealer. Used-car and private-sale rules can differ. How we check this data.
Virginia charges 4.15% at the state level. Motor vehicle sales and use tax, $75 minimum. That rate is higher than 12 states and lower than 38 states. County and city taxes may add to it, so check your local rate and enter the total in the calculator.
What to know in Virginia
Virginia's motor vehicle sales and use tax is 4.15%, with a $75 minimum, so any vehicle priced under about $1,807 pays the minimum.
Trade-ins don't reduce the tax, but manufacturer rebates do, and the calculator takes the rebate off before figuring it. There's no local sales tax on vehicles, but most Virginia localities charge an annual personal property tax on cars, so budget for that separately.
Does Virginia tax your trade-in?
Yes. Virginia taxes the full price of the new car even when you trade one in. On a $35,000 car you'd pay $1,452.50 in state tax with or without a $10,000 trade-in. Because trading in gives you no tax break here, selling your old car privately is often worth more.
Example: a car loan in Virginia
A $35,000 car with $5,000 down, $1,500 in fees, and a 60-month loan at 6.5% APR ($1,452.50 state tax, rolled into the loan):
- Monthly payment: $644.75
- Amount financed: $32,953
- Total interest: $5,733
- Total cost of the car: $43,685
Change any number in the calculator above to see your own figures.
Rebates and fees
In Virginia, a rebate lowers the taxable price, and the calculator takes it off before figuring the tax. Title, registration and dealer documentation fees vary, so ask for an itemized out-the-door price and put the fee total in the calculator.
Other states
States with similar vehicle tax rates:
- Missouri 4.225%
- Hawaii 4%
- New Mexico 4%
- New York 4%
- South Dakota 4%