Personal Property Tax

A personal property tax is a recurring levy assessed by local governments on vehicles owned by individuals. It is usually based on the car’s assessed value, with newer and higher-value vehicles taxed at higher rates.

The tax is typically collected annually and is separate from sales or excise taxes. States and counties use personal property tax revenue to fund schools, emergency services, and local infrastructure.

This tax can represent a significant ongoing cost of ownership and varies widely by location. Some states, like Virginia, are known for relatively high personal property taxes on vehicles, while others do not impose this tax at all.

Vehicle owners must pay this tax to renew their registration, and failure to do so can lead to penalties. Understanding local property tax rules helps buyers accurately budget for long-term vehicle costs.