Vermont Car Sales Tax Calculator
Vermont imposes a 6% purchase and use tax on vehicles, calculated on the greater of the vehicle price or NADA value minus trade-in allowance.
What Is the Vermont Car Sales Tax?
Vermont applies a 6% Purchase and Use Tax on most motor vehicles. This tax is based on the greater of:
- The vehicle’s purchase price, or
- The NADA Clean Trade-In Value (a standardized book value for vehicles).
From that taxable basis, you can subtract any trade-in allowance. However, there’s a catch:
- If the net taxable amount is under $500, you don’t owe tax.
- Otherwise, the 6% tax rate applies.
This ensures that Vermont captures fair tax revenue while giving buyers some relief for trade-ins.
Why Use a Vermont Car Sales Tax Calculator?
Manually calculating the tax can be confusing. You have to compare purchase price vs. NADA value, subtract trade-in credits, and apply percentages. The calculator does all of that instantly.
With the calculator, you can:
- Enter your vehicle price
- Add the NADA clean trade-in value
- Include your trade-in allowance
- Click Calculate
The result shows:
- Taxable Basis (pre-trade-in)
- Net Taxable Amount
- Tax Rate
- Total Estimated Tax
This gives you a clear breakdown, not just a final number.
How the Vermont Car Sales Tax Calculator Works
Here’s a step-by-step look under the hood of the tool:
- Input vehicle price – what you actually paid.
- Input NADA value – the book value that Vermont uses if it’s higher than your purchase price.
- Add trade-in value – if you traded in a car, this amount reduces your taxable base.
- Calculation process:
- The tool takes the higher of purchase price or NADA value.
- Subtracts the trade-in credit.
- If the remaining amount is less than $500, tax = $0.
- Otherwise, it multiplies the amount by 6%.
The calculator displays results in simple, easy-to-read sections, making sure you understand where every number comes from.
Example Calculation
Imagine you’re buying a car for $28,000. The NADA value is $29,500. You also trade in your old car for $5,000.
- Taxable basis: $29,500 (since it’s higher than purchase price)
- Net taxable amount: $29,500 – $5,000 = $24,500
- Tax rate: 6%
- Total tax: $24,500 × 0.06 = $1,470
Without the calculator, you’d need to work this out manually. With the calculator, it’s just a few clicks.
Key Benefits of Using the Calculator
- Accuracy – No risk of math mistakes.
- Clarity – See each part of the calculation.
- Convenience – Quick, on-the-go estimates.
- Planning Power – Budget better before heading to the dealership or DMV.
Vermont Car Tax FAQs
Is the Vermont car sales tax always 6%?
Yes. The state rate is fixed at 6%.
What if I buy a car out of state?
You’ll still owe Vermont’s 6% tax when you register it in Vermont.
Does a trade-in always reduce tax?
Yes, but only up to the taxable amount. If subtracting trade-in value drops your taxable amount below $500, no tax is due.
Do rebates affect the calculation?
Manufacturer rebates do not reduce the taxable basis.
Calculate Car Sales Tax by State with Our Free Calculator
Quick Navigation
