Virginia Personal Property Tax for Electric Cars: What EV Owners Should Know
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The personal property tax for electric cars in Virginia can impact the overall cost of your electric vehicle (EV) ownership. All motor vehicles parked, stored, or garaged in the Old Dominion State are included in the vehicle personal property tax in Virginia.
This guide will explain how the tax for EVs is assessed and how it compares to traditional vehicles. Get useful information about the ins and outs of personal property tax bills, tax rates, vehicle registration fees, vehicle assessments, and more about how they play into the state's personal property tax assessment.
How Virginia’s Personal Property Tax Applies to Electric Vehicles
Virginia residents should know that the state currently has the highest vehicle tax rate of any state in the union. This can include personal property taxes applied to e-vehicles in the state.
Factors Influencing Personal Property Tax Rates for EVs
The key factors that influence personal property tax rates for electric vehicles in the state of Virginia include:
Vehicle purchase price and value
Location where it is stored
Vehicle type
Local jurisdiction's tax policies
Exemptions and Discounts on EV Personal Property Tax
If you live in Virginia, you may receive the following exemptions or discounts when it comes to your electric vehicle personal property tax:
Veterans in Virginia and their spouses are exempt from local personal property taxes on a single motor vehicle that is regularly driven or used by the veteran.
Certain state drivers may qualify for personal property tax relief in Virginia. If less than half of your electric vehicle's annual mileage is used as a business expense for federal tax purposes or reimbursed by your employer, or less than half of your EV's depreciation is associated with a business expense deduction for tax purposes, then your vehicle may qualify for this tax relief.
Many individual Virginia counties, such as Fairfax County, offer certain forms of tax relief and exemptions for seniors and those who are disabled. As a general rule, tax relief can be applied to vehicles, since they are taxed as personal property.
EV vs. Traditional Gas-Powered Vehicle Taxation in Virginia
The Virginia tax on motor vehicles varies depending on whether you drive an EV or a gas-powered car.
In Virginia, drivers of electric vehicles must pay an annual highway use fee to help "make up for the fuel taxes that drivers with fuel-efficient and electric vehicles spend less on, because they’re not using as much fuel. This fee supports the Commonwealth Transportation Fund, which helps maintain our roads, highways, transit and airports."
The highway use fee is calculated based on your overall vehicle fuel efficiency, fuel tax rate, and the average number of miles driven by statewide drivers. EV drivers also pay an alternative fuel tax, which is 30.8 cents per gasoline gallon equivalent.
Drivers of gasoline-powered vehicles, on the other hand, are subject to a statewide gas tax, which is also 30.8 cents per gallon. All of this means that if you drive an electric vehicle in Virginia, you will likely pay more in specific state fees and taxes than drivers of traditional vehicles. However, you will probably make up in savings from not having to pay taxes on fuel.
State and Local Incentives To Offset EV Tax Costs
Virginians enjoy several perks when it comes to electric vehicles and taxes:
The state offers a $2,500 tax credit for the purchase of a new electric vehicle that is powered solely by electricity. The VA electric vehicle tax credit is available on a first-come, first-served basis and may offer a personal property tax return.
You may also be eligible for a tax credit if you have installed an electric vehicle charger at home.
Because EVs are zero-emission vehicles, you are exempt from Virginia's emissions inspection program. This means you can save on vehicle license fees and registration renewal fees.
How and When To Pay Your EV Personal Property Tax
Personal property taxes are typically paid twice a year in Virginia. The dates vary by county. EV personal property taxes can be paid online, via credit card or debit card, directly from a bank account, via ACH from a bank account, or by a check or money order.
Potential Legislative Changes Affecting EV Tax Rates
The current administration has indicated its desire to undo current tax incentives that exist for electric vehicles. That means that Virginia electric vehicle taxes could be changing in the near future. If you own an EV in any state, you should stay tuned and pay attention to potential legislative changes that may affect your current electric vehicle and personal property tax rates.
Get the Best Car Insurance for Your Electric Vehicle
If you drive an electric vehicle, you can search for electric car insurance that matches your needs, values, and priorities. EverQuote offers free custom comparison quotes for Virginia car insurance that give you the chance to take a closer look at your current insurance options. Insurance prices change every day, so the best way to get the right insurance for the right price is to compare online and shop often.
Check out EverQuote for the best car insurance for your Virginia electric vehicle.