Motor vehicle sales/use tax

What is the motor vehicle sales/use tax?

It is an additional tax on all retail sales, leases and transfers of motor vehicles.

How do I pay the tax?

Sellers collect the tax at the time of sale and remit it to the department on their excise tax return.

If sales tax was not paid at the time of purchase, use tax applies at the time the vehicle is registered with the Department of Licensing. This occurs when a vehicle is purchased from a private party or purchased outside of Washington.

The motor vehicle sales/use tax also applies when use tax is due on demonstration, executive, and service vehicles.

What rate do I pay?

• Effective Jan. 1, 2026, the rate is 0.5% (0.005).
• Through Dec. 31, 2025, the rate is 0.3% (0.003).

What is a motor vehicle?

Motor vehicle means every vehicle that is self-propelled as described in RCW 46.04.320, but does not include farm tractors, farm vehicles, off-road vehicles, non-highway vehicles, trailers, and snowmobiles. Generally, this means that motor vehicles licensed for on-road use are subject to the additional tax. This includes:

• Passenger cars.
• Sport utility vehicles (SUVs).
• Pickup trucks.
• Commercial trucks.
• Recreational vehicles (RVs) and motorhomes.
• Motorcycles.
• Buses.
• Demonstration, Executive, and Service vehicles subject to use tax by the dealership.

This additional tax also applies to charges for extra features added to a vehicle prior to delivery to the buyer. For example, the charge for a tow hitch added to a vehicle prior to delivery is subject to the motor vehicle sales/use tax.

What sales are not subject to the motor vehicle sales/use tax?

Unless a specific exemption applies, the following are subject to the regular sales tax but not the motor vehicle sales/use tax:

• Retail car rentals that are subject to the rental car tax under RCW 82.08.020(2).
• Amounts charged to the vehicle owner for post-sale/delivery of equipment and installation.
• Sales of maintenance agreements and warranties by dealers and other third parties.
• Sales of trailers.
• Amounts charged for repairs of motor vehicles.

Sales of motor vehicles that are exempt from sales tax are also exempt from the motor vehicle sales/use tax. Examples include sales to carriers engaged in interstate commerce, sales to the US Government, sales to a Tribe or Tribal citizen, etc.

Special reporting instructions for certain sales or leases of motor vehicles

RCW 82.14.450(4) provides an exemption from the “public safety” component of the retail sales tax approved by voters in a city or county. The exemption applies to:

• Retail sales of motor vehicles.
• The first 36 months of lease payments on motor vehicles.

To report qualifying sales/leases, the department has created special location codes for the partial sales tax exemption. See our web page titled Local Sales & Use Tax Rates and Changes for Car Dealers and Leasing Companies Flyer.

Note: Leases of motor vehicles that extend beyond 36 months do not qualify for the partial exemption. Lessors use the regular sales tax rate and location codes to report motor vehicle lease payments after the 36th month and the motor vehicle sales tax still applies.

What are the funds used for?

The funds are used to finance transportation improvements.