As mentioned above, Virginia's standard tax is 4.15% on car purchases. However, counties or local municipalities are free to increase the rate up to an additional 2.7% on top of the original tax. Virginia is one of more than two dozen states that allow cities to collect an annual car tax. In Virginia Beach, 400,000 cars and trucks are subject to the tax, according to Treasury Commissioner Phil Kellam.
In addition to state and local taxes and inspections, Intuit states that vehicles purchased in Virginia incur other costs. They base motor vehicle sales and use tax in Virginia on the gross sales price of the vehicle, including dealer processing fees. Unlike other states, in Virginia, they apply sales tax to the total price of the car before applying any trade-in credits. The Virginia Department of Motor Vehicles collects these fees separately from sales taxes that are collected from the Virginia Department of Taxation.
Most Virginia jurisdictions use the National Association of Car Dealers's Official Used Car Guide to determine the suggested retail price for new and older vehicles. Virginia vehicle sales tax isn't the only amount you need to know to calculate your car's final calculation. Even though Virginia has some of the lowest tax rates in the country, there are still taxes on car sales in the state. If you have an old vehicle and want to buy a current one, you can exchange it; in the state of Virginia, you must pay taxes on the original value of the car you are about to buy.
The outbreak of COVID-19 (caused by the coronavirus) may have affected sales tax filing deadlines in Virginia Beach. Virginia Beach has a budget surplus compared to last year, and council members had been exploring ways to give taxpayers a break. Instead, Moss supported a tax reduction plan presented by Kellam, who recently told the council that the fair market value of cars and trucks is distorted due to problems in the supply chain of new vehicles. When you purchase a vehicle, you will be responsible for paying Virginia car sales taxes and fees.
After you pay your county taxes each year, you'll receive the county sticker that should be visible on your car at all times. James City and York County have a maximum tax rate of 7%; major Commonwealth cities, such as Virginia Beach, Chesapeake and Norfolk, have a 6% tax rate. The value of cars in Virginia Beach is skyrocketing, but the annual tax that residents pay to own a vehicle in Virginia Beach will remain at a reasonable level, according to the city.
