Alternative Fuel Vehicles and Plug-In Hybrids Washington State Tax Exemptions
Starting January 1, 2023, vehicle registrations allow the removal of your address. New registrations have your address located on the bottom. There's a dotted line showing where to cut it. This is optional and intended to provide address privacy in case of theft.
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
- The current list of qualifying vehicles (data.wa.gov)
- Frequently asked questions: Alternative Fuel Vehicles and Plug-In Hybrids Tax Exemptions
- Incentive Programs: Deferrals, Exemptions, and Credits
- RCW 82.08.809: Exemptions-Vehicles using clean alternative fuels and electric vehicles, exceptions-Quarterly transfers
- RCW 82.12.809: Exemptions-Vehicles using clean alternative fuels and electric vehicles, exceptions-Quarterly transfers
- E2SHB 2042 - Laws of 2019: Advancing Green Transportation Adoption
- Electric vehicle population and transaction interactive data sets (data.wa.gov)
Questions? Need help?
Call DOR's Tax Assistance line: 360.705.6705
