Sales Tax

Attention: Important Information Regarding Sales Tax Customers are required to remit sales tax to the State in a timely manner. Sales tax on vehicle sales is due on the 20th day of the month following the month in which the sale took place. For example, if your bill of sale is dated July 26, 2020, sales tax is due on or before August 20, 2020. Sales tax paid after the due date will be assessed interest and penalties. If you are not able to visit the DMV in a timely manner to get your vehicle registered and remit sales tax to DMV prior to the tax due date, you may contact the Division of Taxation excise tax section to pay your sales tax directly before the tax due date to avoid the assessment of penalties and interest. Excise tax section can be reached at 401-574-8955 or via email [email protected].

Insurance Proceed Letters: Are no longer accepted by the Division of Taxation due to a change in legislation. For additional information please refer to Insurance Bulletin Number 2011-04

    Dealer

    • New or used vehicles, sales tax is 7% of the purchase price, minus trade-in and other allowances. This applies to passenger vehicles and motor homes only. All other vehicles are excluded from the trade-in allowance.
    • To avoid a late charges sales tax must be paid by the 20th of the month following the month of purchase - even if vehicle is not registered.

    Private Party

    • Vehicle 7 years old or less, sales tax is 7% of NADA Clean Retail book value or sale price, whichever is greater.
    • To avoid a late charges sales tax must be paid by the 20th of the month following the month of purchase - even if vehicle is not registered.

    Cars of Particular Interest (CPI)

    • Dealer: New or used vehicles, sales tax is 7% of the purchase price, minus trade-in and other allowances. This applies to passenger vehicles and motor homes only. All other vehicles are excluded from the trade-in allowance.
    • Private Party: Sales tax is 7% of NADA Clean Retail book value and/or Black Book CPI or purchase price, whichever is greater.

    Vehicles 30 Years and Older

    • Dealer: Sales tax is 7% of the purchase price
    • Private Party: Sales tax is 7% of NADA Clean Retail book value or CPI Book value or purchase price, whichever is greater.
    • Any vehicles on CPI list on private sale will be based on Book Value or Purchase Price, whichever is higher.
    • Sales tax is 7% of the purchase price.
    • Cars of Particular Interests (CPI)

    Form 2290

    Gifted Vehicles

    • Immediate Family: No sales tax on the vehicle unless outstanding taxes are due. A signed letter of gift is required to exempt you from the sales tax. Immediate family is mother, father, sister, brother, husband, wife, or child.
    • Non-Immediate Family: No sales tax on the vehicle unless outstanding taxes are due. A signed and notarized letter of gift and gift affidavit is required to exempt you from the sales tax.