States · Virginia

Virginia Vehicle Registration Cost

Virginia is famous (or notorious) for the "car tax" — an annual vehicle personal property tax assessed by every county and city at rates typically 3.0%-4.5% of the vehicle's NADA value. The 1998 Personal Property Tax Relief Act (PPTRA) reduced this somewhat by having the state subsidize a percentage of the tax on the first $20,000 of value — the subsidy varies by locality (Fairfax ~38%, Richmond ~58%, others differ) and after relief the effective rate averages about 2.0-2.5% statewide. Beyond the annual property tax, Virginia keeps state DMV fees low: $30.75/year registration (unchanged since 2007), $15 title fee, and a flat 4.15% Motor Vehicle Sales and Use Tax (SUT) with NO trade-in credit. EVs and high-MPG vehicles pay a $116.49/year Highway Use Fee. A new $35,000 vehicle in Fairfax County runs about $2,205 in first-year costs (mostly the 4.15% SUT and first-year property tax), with annual renewals around $625 dropping over time as the vehicle depreciates.

How Virginia calculates registration

• State Registration Fee — $31 (annual) Per VA Code §46.2-694. Statewide flat fee for passenger vehicles — unchanged since 2007. This is the DMV fee; the much larger vehicle property tax is collected separately by your county or city.
• Title Fee — $15 (one-time) One-time fee at first titling or ownership transfer.
• Annual Vehicle Personal Property Tax (effective, after PPTRA) — 2% of depreciated value (annual) Per VA Code §58.1-3500. Virginia is one of about 20 states that taxes vehicles annually as personal property. The gross rate is set by your county or city and varies meaningfully — Fairfax 4.57%, Loudoun 4.20%, Arlington 5.00%, Richmond 3.70%, Norfolk 4.00%, with rural counties as low as 3.00%. The 1998 Personal Property Tax Relief Act (PPTRA) subsidizes a percentage of the tax on the first $20,000 of assessed value for personal-use vehicles — Fairfax provides ~38% relief, Loudoun ~42%, Richmond ~58%, varying widely. After PPTRA, statewide effective rate is approximately 2.0% on a $35,000 vehicle.

Sales tax

Virginia charges 4.15% state Motor Vehicle Sales and Use Tax (SUT) . Trade-in credit: none. Tax basis: purchase price.

Virginia's Motor Vehicle Sales and Use Tax (SUT) is a separate tax from the state's general 5.3-6% sales tax — vehicles are taxed under a dedicated 4.15% rate per VA Code §58.1-2402. The minimum SUT is $75, which applies to vehicles under $1,807 in purchase price. Unlike most states, Virginia does NOT allow trade-in credit on the SUT — buyers pay tax on the FULL purchase price even when trading in another vehicle. This costs Virginia trade-in buyers roughly $415 extra on a $10,000 trade-in vs states with full trade-in credit.

Electric vehicle surcharge

Virginia charges an additional $116/year for electric vehicles.

Per VA Code §46.2-770. The Highway Use Fee applies to vehicles with fuel efficiency above 25 MPG and to all battery EVs — $116.49 for FY2026, indexed annually to gas tax revenue. Drivers can opt into a mileage-based alternative (paying a per-mile fee instead of the flat amount), which can save high-MPG drivers money if they drive less than ~11,000 miles/year.

What makes Virginia distinctive

• Virginia's annual vehicle personal property tax is the highest-profile state vehicle cost in the US — it became a political issue in the 1997 gubernatorial race that produced PPTRA in 1998. Gross rates range from 3.0% to 5.0% depending on county/city, but the state subsidy reduces the effective burden on the first $20,000 of assessed value.
• The Personal Property Tax Relief Act (PPTRA) provides a state subsidy that varies dramatically by locality: Fairfax ~38%, Loudoun ~42%, Arlington ~52%, Richmond ~58%, Norfolk ~50%. The subsidy applies only to the first $20,000 of assessed value and only to personal-use (not business) vehicles. Vehicles over $20,000 pay the gross rate on the portion above $20K.
• Virginia does NOT credit trade-in value on its Motor Vehicle Sales and Use Tax (SUT). Buyers pay 4.15% on the FULL purchase price even when trading in another vehicle — costing Virginia buyers about $415 more than they'd pay in a full-trade-in-credit state on a $10,000 trade-in.
• Virginia's $30.75 annual state registration fee has been unchanged since 2007 — one of the most stable vehicle registration fees in the country. The state has consistently funded transportation through other channels (gas tax, sales tax, regional fees) rather than raising the DMV registration.
• Virginia's Highway Use Fee of $116.49/year (FY2026) applies to all battery EVs AND to gas vehicles with fuel efficiency above 25 MPG. Drivers can opt into a per-mile alternative via the state's Mileage Choice program, which can save high-MPG/low-mileage drivers money. The fee is indexed annually to gas tax revenue.