District of Columbia used car dealer paperwork and sales tax guide
How District of Columbia sales tax works on a used-car deal, how trade-ins and dealer fees are treated, and the title forms and notices a District of Columbia dealer prints.
Last checked November 14, 2026
This is a plain-language summary of how a used-car deal works out in District of Columbia: the sales tax, what happens to a trade-in, how dealer fees are treated, and the paperwork a dealer prints. DMS Apex uses these same rules to work out each District of Columbia deal.
District of Columbia tax and fees at a glance
| Item | District of Columbia |
|---|---|
| State tax | No state sales tax on the deal |
| Who pays it | Buyer, at titling or registration |
| Trade-in | Reduces the tax |
| Dealer documentary fee | Not part of the taxable amount |
| Service contract | Not taxed |
| Starting title fee in DMS Apex | $30 |
How District of Columbia sales tax is worked out
The District of Columbia charges no sales tax on a titled vehicle. The DMV collects a vehicle excise tax at titling on the vehicle's fair market value (not the selling price) by weight and fuel economy (about 1% to 11%), so nothing is added to the deal here. The Buyer's Order prints the used-vehicle defect and inspection notice that D.C. Code 50-505 requires. Title fee starts at $30. DC requires the known defects to be stated in the largest type on the document (16 DCMR 1421.2): write them in the space on the Buyer's Order notice.
Other required notices
District of Columbia requires the following wording on the Buyer's Order. DMS Apex prints it.
- NOTICE (D.C. CODE 50-505): THIS MOTOR VEHICLE HAS ______ OR HAS NOT ______ BEEN INSPECTED TO DETERMINE IF DEFECT EXISTS. KNOWN MATERIAL MECHANICAL DEFECTS: ________________. KNOWN DAMAGE FROM FIRE, WATER, COLLISION OR OTHER CAUSE WHERE REPAIRS EXCEEDED $1,000: ________________.
District of Columbia paperwork a dealer prints
DMS Apex prints these documents for a District of Columbia deal, all in black and white:
- Buyer's Order with the used-vehicle defect notice
- Buyers Guide
Step-by-step form guides
- Certificate of Title / Temporary Registration and Tag Application: how to fill it out
This is general information, not legal or tax advice. District of Columbia rules change: confirm current requirements with the District of Columbia Department of Motor Vehicles.
Common questions
How much is sales tax on a used car in District of Columbia?
No state sales tax on the deal. A trade-in reduces the taxable amount. See the table above and confirm the current rate with the District of Columbia Department of Motor Vehicles.
Does a trade-in lower the tax in District of Columbia?
Yes. In District of Columbia the trade-in allowance reduces the amount the tax is figured on.
Is the dealer fee taxed in District of Columbia?
No. In DMS Apex the dealer documentary fee is not part of the taxable amount for District of Columbia.
Does DMS Apex print District of Columbia dealer forms?
Yes. It prints Buyer's Order with the used-vehicle defect notice, Buyers Guide.
Run your lot, deals and paperwork in one place
DMS Apex is $28 a month with a 15-day free trial. It prints your state's forms and works out your state's tax.
Start your 15-day free trial