Alternative Fuel Vehicle (AFV) Retail Sales and Use Tax Exemption

The sale or lease of new or used passenger vehicles, light-duty trucks, and medium-duty passenger AFVs is exempt from the state retail sales and use tax. Eligible AFVs include those powered by natural gas, propane, hydrogen, or electricity. To be eligible, new vehicles may not be valued above $45,000 and used vehicles may not be valued above $30,000. The tax exemption may apply to all or a portion of the vehicle’s value. The maximum eligible amount for used purchased or leased vehicles is $16,000. The Maximum exemption amounts for vehicles are as follows:

Purchase or Lease Year Maximum New Vehicle Price Eligible for Exemption Maximum Leased Vehicle Price Eligible for Exemption
August 1, 2021 - July 31, 2023 $20,000 $16,000
August 1, 2023 - July 31, 2025 $15,000 $16,000

For more information, see the Renewable Energy/Green Incentives section of Washington Department of Revenue’s Incentives Programs website.

(Reference Revised Code of Washington 82.12.9999)

Jurisdiction: Washington

Type: State Incentives

Enacted: May 7, 2019

Technologies: EVs, Hydrogen Fuel Cells, Natural Gas, PHEVs, Propane (LPG)

See all Washington Laws and Incentives.