Purchase and use tax — Vermont Permit Test

Purchase and use tax on the Vermont permit test — 2 rules, each with the reason behind it and a question on it while it is fresh.

The rules

Buying a new or used vehicle means paying a Purchase and Use Tax of 6% of the price paid or of the current fair market value, whichever is greater.

Taking the greater of the two stops a sale being written down to a dollar to dodge the tax.

This is called a Purchase and Use Tax and is 6% of the price you paid for the non-leased vehicle or the current fair market value, whichever is greater.

2025 Vermont Driver's Manual, p.66

A new Vermont resident is exempt from the Purchase and Use Tax on proof that a tax equal to or greater than Vermont's was paid elsewhere. Where the tax paid was less, only the difference is due.

The state is collecting the tax once, not collecting it again from somebody who has moved.

If the tax paid in another jurisdiction is less than the Vermont tax, the tax due shall be the difference.

2025 Vermont Driver's Manual, p.66

On the test

What is the Vermont Purchase and Use Tax on a vehicle?

6% of the price or fair market value, whichever is greater. Taking the greater of the two stops a sale being written down to a dollar to dodge the tax. 2025 Vermont Driver's Manual, p.66: “This is called a Purchase and Use Tax and is 6% of the price you paid for the non-leased vehicle or the current fair market value, whichever is greater.”

How this works

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Where these come from

Every rule here is checked against 2025 Vermont Driver's Manual, published by the Vermont Department of Motor Vehicles, and against the state code itself. Last checked 2026-09-15.