Clean Alternative Fuel and Plug-in Hybrid Vehicles Sales/Use Tax Exemptions

Beginning August 1, 2019, Washington state offers a sales and use tax exemption for new or used clean alternative fuel and certain plug-in hybrid vehicles. Click here for a list of qualifying vehicles. The exemption is applied to the sales price or fair market value when a passenger car, light duty truck, or medium duty passenger vehicle that is powered exclusively by a clean alternative fuel or capable of traveling at least 30 miles using only battery power is purchased or leased. The vehicle must be sold or valued at less than $45,000 if new or $30,000 if used. Exemption for sales of new and used qualifying vehicles expires July 31, 2025. Leases that qualify for this exemption on or before July 31, 2025, can continue to claim the exemption on lease payments due through July 31, 2028. The maximum exemption amount decreases starting in August 2021. See exemption amounts below. New Vehicles Purchased Aug. 1, 2019 - July 31, 2021: up to $25,000 of the sales or lease price Aug. 1, 2021 - July 31, 2023: up to $20,000 of the sales or lease price Aug. 1, 2023 - July 31, 2025: up to $15,000 of the sales or lease price Used Vehicles Purchased Aug. 1, 2019 - July 31, 2025: up to $16,000 of the sales or lease price