Sales tax on vehicles in Washington State
Car sales tax in Washington State = 6.5% state + your local rate + 0.3% motor vehicle sales tax, on the price after your trade-in. That usually adds up to about 8.5% to 10.9%. Vehicles over $102,000 also pay the 8% luxury tax on the amount above that.
Washington has no state income tax, and its sales taxes are among the highest in the country. Vehicles get one extra layer on top of the normal rate: the 0.3% motor vehicle sales tax, which goes to transportation. Because local rates depend on the exact address, sales tax on cars in Washington varies across the state. When people talk about the Washington auto tax, this combined rate is what they mean. It's the same auto tax Washington State charges whether you buy new or used, from a dealer or a private seller. Rates in and around Seattle and other cities with transit taxes are near the top of the range.
How to calculate sales tax on a car in Washington State
- Taxable price: selling price minus your trade-in.
- Regular sales tax: taxable price × (6.5% + your local rate).
- Motor vehicle sales tax: taxable price × 0.3%.
- Luxury tax (if it applies): (selling price + trade-in − $102,000) × 8%.
Example: a $40,000 SUV with a $10,000 trade-in, 3.5% local rate
- Taxable price: $40,000 − $10,000 = $30,000
- Sales tax: $30,000 × (6.5% + 3.5% + 0.3%) = $3,090.00
- The trade-in saved $1,030 in tax.
The Washington State luxury tax on vehicles
Starting January 1, 2026, Washington charges an 8% luxury motor vehicle tax on new and used vehicles priced above a deduction amount. It's in addition to regular sales tax and the motor vehicle sales tax, and it applies only to the part of the price above the deduction.
| Sale date | Deduction amount |
|---|---|
| January 1 – June 30, 2026 | $100,000 |
| July 1, 2026 – June 30, 2027 | $102,000 |
| July 1, 2027 – June 30, 2028 | $104,040 |
| July 1, 2028 – June 30, 2029 | $106,121 |
One rule catches people out: for the luxury tax, the trade-in is added back to the selling price before the deduction is subtracted, so a trade-in doesn't shrink the luxury tax the way it shrinks regular sales tax. An extended warranty isn't part of the vehicle and isn't subject to it. Accessories installed as a condition of the sale are. For leases, the tax is based on the vehicle's fair market value at the start of the lease. Leases signed from July 1, 2026 can spread it over the lease payments.
Example: a $150,000 selling price after a $50,000 trade-in (bought in November 2026)
- Luxury tax base: $150,000 + $50,000 − $102,000 = $98,000
- Luxury tax: $98,000 × 8% = $7,840.00, on top of regular sales tax on the $150,000
Private sales and out-of-state purchases
When you buy from a private seller, no dealer collects tax. You pay use tax at the same combined rate when you transfer the title and register the car with the Department of Licensing, within 15 days of the purchase. A car bought out of state and brought into Washington is also subject to use tax when you register it here, with credit for sales tax properly paid to another state. If the luxury tax wasn't paid at purchase, it's collected when the vehicle is registered with DOL.
Registration and title fees
Sales tax is only part of the cost. You'll also pay the license fee, weight fee, filing and service fees, and, in the Sound Transit area, the RTA excise tax. Our Washington registration fee calculator adds those up.
Frequently asked questions
What is the car sales tax in WA?
The 6.5% state rate plus your local rate plus 0.3%, on the price after trade-in, usually 8.5% to 10.9% in total.
Is there a luxury tax on cars in Washington State?
Yes. Since January 1, 2026: 8% on the portion of the price above $100,000 (raised to $102,000 on July 1, 2026), with the trade-in added back.
Do I pay Washington sales tax if I buy a car in Oregon?
Yes. Washington residents owe Washington use tax when they register the car here, even though Oregon has no sales tax.
Is the dealer doc fee taxed in Washington?
Yes. Dealer documentary service fees are part of the selling price and are subject to sales tax.
Sources
- WA Department of Revenue: Luxury motor vehicle tax (8%, deduction amounts, trade-in rule)
- WA Department of Revenue: Sales and use tax rates and rate lookup
This calculator gives an estimate. Your dealer or DOL calculates the final amount. How we calculate