Washington used car dealer paperwork and sales tax guide
How Washington sales tax works on a used-car deal, how trade-ins and dealer fees are treated, and the title forms and notices a Washington dealer prints.
Last checked November 14, 2026
This is a plain-language summary of how a used-car deal works out in Washington: 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 Washington deal.
Washington tax and fees at a glance
| Item | Washington |
|---|---|
| State tax | 6.5% state rate plus local tax |
| Who pays it | Collected by the dealer |
| Trade-in | Reduces the tax |
| Documentary service fee | Not part of the taxable amount |
| Service contract | Taxed |
| Starting title fee in DMS Apex | $40 |
How Washington sales tax is worked out
Washington: the dealer collects 6.5% state tax, the additional 0.5% motor vehicle sales tax and the local tax of the dealership's location (enter the local rate in Settings) on the price and other charges, less a like-kind trade-in. The documentary service fee is not subject to sales tax, is capped at $200 and must be disclosed in writing as negotiable. A service contract carries sales tax but not the extra 0.5%: this screen applies the 0.5% to the whole amount, so adjust if needed. Title fee starts at $40 on a dealer retail sale. The 8% luxury tax applies to the part of the price plus any like-kind trade-in that is over $102,000 (from 7/1/2026). A service contract carries the state and local tax but not the extra 0.5%.
Required wording beside the dealer fee
Washington requires this wording where the dealer fee appears. The Buyer's Order prints it.
THE DOCUMENTARY SERVICE FEE IS A NEGOTIABLE FEE.
Washington paperwork a dealer prints
DMS Apex prints these documents for a Washington deal, all in black and white:
- Buyer's Order
- Buyers Guide
Step-by-step form guides
- TD-420-001 Vehicle Title Application: how to fill it out
This is general information, not legal or tax advice. Washington rules change: confirm current requirements with the Washington Department of Licensing or the Washington Department of Revenue.
Common questions
How much is sales tax on a used car in Washington?
6.5% state rate plus local tax. A trade-in reduces the taxable amount. See the table above and confirm the current rate with the Washington Department of Licensing or the Washington Department of Revenue.
Does a trade-in lower the tax in Washington?
Yes. In Washington the trade-in allowance reduces the amount the tax is figured on.
Is the dealer fee taxed in Washington?
No. In DMS Apex the documentary service fee is not part of the taxable amount for Washington.
Does DMS Apex print Washington dealer forms?
Yes. It prints Buyer's Order, Buyers Guide.
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