Virginia gives no trade-in credit. Your trade does not reduce the taxable amount at all, which catches people out because most neighbouring states do allow it. Rebates and incentives do reduce the price, and the dealer processing fee is taxable. There is no local sales tax on vehicles, and a minimum tax of $75 applies.
Advertisement
Sources
Statute: Va. Code § 58.1-2402
Virginia DMV, Motor Vehicle Sales and Use Tax “Virginia is required to collect a 4.15% Sales and Use Tax (SUT) at the time of titling whenever a vehicle is sold ... The amount due is based on the vehicle’s gross sales price, or $75, whichever is greater. ... It includes the dealer processing fee, but does not include any other price reductions, such as credit for trade-ins”
Va. Code § 58.1-2402 “The minimum tax levied on the sale of any motor vehicle in the Commonwealth ... shall be $75”
Last verified: September 21, 2026.
Advertisement
Estimates only. Your dealer or the state issues the final bill, and exemptions can change what you owe. This page does not collect or store anything you enter.