Vermont used car dealer paperwork and sales tax guide
How Vermont sales tax works on a used-car deal, how trade-ins and dealer fees are treated, and the title forms and notices a Vermont dealer prints.
Last checked November 14, 2026
This is a plain-language summary of how a used-car deal works out in Vermont: 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 Vermont deal.
Vermont tax and fees at a glance
| Item | Vermont |
|---|---|
| State tax | 6% state rate |
| Who pays it | Buyer, at titling or registration |
| Trade-in | Reduces the tax |
| Documentation fee | Part of the taxable amount |
| Service contract | Not taxed |
| Starting title fee in DMS Apex | $42 |
How Vermont sales tax is worked out
Vermont: the buyer pays the 6% purchase and use tax to the DMV at registration, so the amount shown is an estimate. It is figured on the price including the documentation fee and other charges, less a trade-in the buyer owns and has registered (a separately stated service contract is left out; confirm with the DMV). Vermont requires the used-vehicle inspection disclosure (VD-124) and, with a retail installment contract, the VD-126 disclosure, and the documentation fee must be included in the cash price. Title fee starts at $42. Vermont taxes the greater of the price or the J.D. Power clean trade-in value: confirm on the VD-119. The Attorney General's rule exempts dealers from the odometer statement only for vehicles 25 years or older.
Vermont paperwork a dealer prints
DMS Apex prints these documents for a Vermont deal, all in black and white:
- Buyer's Order
- Buyers Guide
Step-by-step form guides
- VD-119 Registration, Tax and Title Application: how to fill it out
This is general information, not legal or tax advice. Vermont rules change: confirm current requirements with the Vermont Department of Motor Vehicles.
Common questions
How much is sales tax on a used car in Vermont?
6% state rate. A trade-in reduces the taxable amount. See the table above and confirm the current rate with the Vermont Department of Motor Vehicles.
Does a trade-in lower the tax in Vermont?
Yes. In Vermont the trade-in allowance reduces the amount the tax is figured on.
Is the dealer fee taxed in Vermont?
Yes. In DMS Apex the documentation fee is part of the taxable amount for Vermont.
Does DMS Apex print Vermont dealer forms?
Yes. It prints Buyer's Order, Buyers Guide.
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