Is Washington State Vehicle Use Tax Deductible? Washington State Vehicle Taxes and Fees

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Washington State Sales Tax

  • Cars purchased in Washington state are subject to a 6.8% state sales tax.
  • County and local rates can add up to 3.5% in additional sales tax.

Washington State Residency and Tax Deductions

  • You are considered a Washington resident for sales and use tax purposes if you intend to live in the state.
  • Washington charges a $150 fee to plug-in vehicle owners.

Vehicle Excise Tax (VET)

  • The Vehicle Excise Tax (VET) is levied by county agencies in Washington.
  • This tax applies throughout vehicle ownership and is assessed annually upon registration renewal.

RTA Tax and Deductibility

  • In Washington, only the RTA tax portion of vehicle registration fees is tax deductible on Form 1040 Schedule A.
  • You’re considered a Washington resident for sales tax if you intend to live there long-term.

Use Tax and Deductions

  • Washington collects a vehicle use tax when registering an out-of-state used car.
  • Electric vehicle owners pay a $150 state infrastructure fee.

Other Taxes in Washington State

  • Washington charges sales tax on vehicle purchases with a state rate of 6.8%.
  • The state also collects taxes on home sales, business income, capital gains over $250,000, recreational marijuana, and more.

Deductibility of Vehicle Registration Tax

  • No portion of Washington vehicle registration fees is tax deductible, except the RTA tax.

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