UPDATE

New state-wide mandate requires masks to visit our offices. Learn more.
Appointments are required for in-person services. Schedule yours now.
Get the latest COVID guidance for businesses.

If the information on this translated website is unclear, please contact us at 360.902.3900 for help in your language of choice.

Alternative Fuel Vehicles and Plug-In Hybrids Washington State Tax Exemptions

On August 1, 2019, Washington State reinstated the sales and use tax exemption for the sales of:

  • Vehicles powered by a clean alternative fuel.
  • Certain plug-in hybrids.

The exemption applies to dealer and private sales of new, used, and leased vehicles sold on or after August 1, 2019.

  • New vehicle transactions must not exceed $45,000 in purchase price or lease payments.
  • Used vehicles transactions must not exceed $30,000 in fair market value or lease payments.

These thresholds may also include the value of your trade-in, if applicable.

Example

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.

Related information

Questions? Need help?

Call DOR's Tax Assistance line: 360.705.6705

Chatbot icon
Washington Healthcare Finder
Good To Go!
Access Washington – official state government website