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On August 1, 2019, Washington State reinstated the sales and use tax exemption for the sales of:
The exemption applies to dealer and private sales of new, used, and leased vehicles sold on or after August 1, 2019.
These thresholds may also include the value of your trade-in, if applicable.
If the cost of a new vehicle is $48,000, and the value of your trade-in is worth $6,000, you can't receive the tax exemption. Even though the trade-in brought the cost down to $42,000, the new vehicle was still worth over the $45,000 limit. You cannot use a trade-in to lower the price of a vehicle to meet the exemption limits.
Call DOR's Information Center: 1.800.647.7706