States · Vermont

Vermont Vehicle Registration Cost

Vermont has a 6% Purchase and Use Tax on vehicles (replaces sales tax), applied to the higher of purchase price or J.D. Power clean trade-in value with full trade-in credit and NO local additions. Annual registration is $76 flat for passenger vehicles. Title fee is $42 + $8 warranty fee on new vehicles. EV infrastructure fee took effect January 1, 2025 at $89/year (PHEV $44.50). No annual ad valorem. Per Act No. 165 of 2024, all vehicles sold to new owners receive a Vermont title at registration (previous model-year exemptions removed). A new $35,000 vehicle in Vermont runs about $2,226 in first-year costs ($2,100 P&U tax + $76 registration + $50 title/warranty), with annual renewals around $76.

How Vermont calculates registration

• Annual Registration Fee — $76 (annual) Per 23 V.S.A. §361. Statewide flat fee for passenger vehicles under 26,001 lbs. Two-year option also available at double the annual rate.
• Title Fee — $42 (one-time) One-time title fee per Vermont DMV. Lien recording is $14 additional if financed.
• Warranty Fee (new vehicles only) — $8 (one-time) Per 23 V.S.A. §476. $8 warranty fee charged on new motor vehicles only — excluding trailers, motorcycles, snowmobiles, and trucks over 12,000 lbs.

Sales tax

Vermont charges 6% state Purchase and Use Tax . Trade-in credit: full. Tax basis: purchase price.

Vermont imposes the Purchase and Use Tax at 6% of taxable price — applied to the HIGHER of purchase price or J.D. Power clean trade-in value (to prevent underreporting). Replaces sales tax for vehicles. NO local additions. Trade-in is fully credited. Maximum tax is $2,486 for trucks/tractors registered at 10,099 lbs or higher (no maximum for autos). Family transfers between spouses, parents/children/grandparents are EXEMPT. Out-of-state buyers acquiring a vehicle within 60 DAYS may also qualify for exemption if not previously registered in Vermont.

Electric vehicle surcharge

Vermont charges an additional $89/year for electric vehicles.

EV Infrastructure Fee effective January 1, 2025. Battery EVs pay $89/year additional registration. Plug-in hybrids pay $44.50/year. Conventional hybrids do not pay a surcharge. Fees fund EV charging infrastructure deployment.

What makes Vermont distinctive

• Vermont's Purchase and Use Tax applies to the HIGHER of purchase price or J.D. Power clean trade-in value — preventing underreporting on private-party sales. If you buy a vehicle for $10,000 that has $15,000 J.D. Power value, you owe Purchase and Use Tax on $15,000. This is similar to RI and DE.
• Vermont per Act No. 165 of 2024 eliminated previous model-year exemptions — ALL vehicles sold to new owners now receive a Vermont title when registered. Previously, vehicles older than a certain model year did not require titles. The new rule simplifies recordkeeping and prevents some title-washing schemes.
• Vermont's EV Infrastructure Fee took effect January 1, 2025 at $89/year for battery EVs and $44.50 for plug-in hybrids. The fee specifically funds EV charging infrastructure deployment (not general roads), making it a more targeted use than EV surcharges in most states which go to general highway funds.
• Vermont charges a unique $8 "warranty fee" on new vehicles only (per 23 V.S.A. §476) — funding the state's lemon law enforcement. Used vehicles are exempt. This is in addition to the title fee and represents a small but distinct line item.
• Vermont has NO annual vehicle ad valorem tax — unlike most other New England states (CT, MA, ME, NH all have some form). Combined with a moderate 6% Purchase and Use Tax and modest $76/year registration, Vermont is mid-cost overall. New residents have 60 days to register.