AutoTaxCalculatorHow DC car sales tax works
DC excise tax = NADA fair market value × the rate for your car's weight and city MPG. A $35,000 SUV weighing 4,200 lbs and rated 24 MPG city pays 6%, or $2,100.
DC doesn't collect sales tax on vehicles. It charges an excise tax under DC Code § 50-2201.03 when the title is issued. The Motor Excise Tax Amendment Act of 2024 replaced the old weight-only rates with a grid that also rewards fuel efficiency, and DC DMV began applying it on February 17, 2025. Electric vehicles lost their old exemption at the same time and now pay a reduced rate.
The 2025 excise tax grid
| Unladen weight | ≤20 MPG | 21–25 | 26–30 | 31–39 | 40+ | Electric |
|---|---|---|---|---|---|---|
| 3,499 lbs or less | 9.0% | 5.0% | 3.1% | 2.2% | 1.5% | 1.0% |
| 3,500–4,999 lbs | 10.0% | 6.0% | 4.1% | 3.2% | 2.5% | 2.0% |
| 5,000 lbs or more | 11.0% | 7.0% | 5.1% | 4.2% | 3.5% | 3.0% |
DMV uses the city MPG rating, rounded down to a whole number. A car rated 25.9 MPG city falls in the 21–25 column. MPGe ratings for electric vehicles don't count. They have their own column.
Fair market value, not price
The rate is applied to the vehicle's fair market value in the current NADA Business Guide for the Eastern Region at the time you apply for title. Your negotiated price, trade-in and dealer discounts don't change the tax. A great deal on a used car still pays tax on its book value, and an overpriced one doesn't pay extra.
Lower-income option: the EITC election
The MPG grid doesn't have to apply to people who claimed and received the DC Earned Income Tax Credit for the most recent tax period. They can choose the old weight-class rates (6%, 7% or 8%) or the MPG grid, whichever costs less. You'll need documentation from the Office of Tax and Revenue before titling. Tick the box and the calculator picks the lower rate.
DC registration fees (from March 30, 2026)
| Class | Weight | Before Mar 30, 2026 | From Mar 30, 2026 |
|---|---|---|---|
| Class I | 3,499 lbs or less | $72 | $70 |
| Class II | 3,500–4,999 lbs | $175 | $175 |
| Class III | 5,000–5,999 lbs | $250 | $300 |
| Class IV | 6,000 lbs or more | $500 | $550 + $75 per 1,000 lbs over 10,000 |
| Class V | Battery electric | $36 | $40 |
A battery electric passenger vehicle with a shipping weight under 5,000 lbs may subtract 1,000 lbs from its weight. The title fee is $30, and recording a lien costs $20 per lien.
Worked examples
Mid-size SUV: 4,200 lbs, 24 MPG city, $35,000 NADA value
- Rate: 3,500–4,999 lbs and 21–25 MPG = 6.0%
- Excise tax: $35,000 × 6% = $2,100.00
- Title $30 + Class II registration $175
- Total: $2,305.00
Hybrid sedan: 3,300 lbs, 48 MPG city, $30,000 value
- Rate: 3,499 lbs or less and 40+ MPG = 1.5%
- Excise tax: $30,000 × 1.5% = $450.00
- Total with $30 title and $70 Class I registration: $550.00
Electric crossover: 4,500 lbs, $45,000 value
- Rate: electric, 3,500–4,999 lbs = 2.0%
- Excise tax: $45,000 × 2% = $900.00
- Total with $30 title and $40 Class V registration: $970.00
Who doesn't pay DC excise tax
- New DC residents: if the vehicle was registered or titled in another state before you established DC residency.
- Family gifts: between spouses, domestic partners, or parent and child, but only if the vehicle already has a DC title.
- Divorce or separation: when a decree, court order or signed agreement assigns the vehicle.
- Surviving co-owner: when the title is reissued to the surviving owner.
- Lemon replacement: a new vehicle replacing a defective one within 60 days of purchase, with tax adjusted for any difference in value.
- Trusts: transfer into a trust where the owner is also the trustee.
Frequently asked questions
Does a trade-in lower DC vehicle sales tax?
No. The excise tax is based on the vehicle's NADA fair market value, so trade-ins and discounts don't change it.
Why did my electric car get taxed in DC?
The 2024 amendment ended the EV exemption from February 17, 2025. EVs now pay 1%, 2% or 3% depending on weight, the lowest rates on the grid.
Where do I find my car's city MPG?
On the window sticker or at fueleconomy.gov. DC uses the city figure, not the combined one.
Sources
- DC DMV: Vehicle title and excise tax fees
- DC DMV: Vehicle registration fees
- DC DMV: Excise tax exemption categories (PDF)
This calculator gives an estimate. DC DMV calculates the final amount. How we calculate