Doc fee limits and trade-in tax rules by state
Written and checked by Drago. Last reviewed
Doc fees are capped in 18 states, and in most states you pay tax only on the price minus your trade-in. Find your state below and compare its rules with your dealer's quote.
How we review this guidance. Rules and fees can vary by state, lender, dealer, and vehicle.
The short answer
- Doc fees are capped in 18 states. South Carolina and Texas set an amount that's presumed reasonable, and a dealer must file with the state to charge more. The rest set no dollar limit.
- In 39 states, a trade-in's full value comes off the price you're taxed on. Delaware, Michigan, Ohio, and Oklahoma limit that credit, and California, DC, Hawaii, and Virginia give none.
- Some states allow other paperwork fees on top of the doc fee, such as California's electronic filing charge. Ask the dealer which line is the doc fee.
- Rules change. Each state's section links its sources and says when they were checked.
How to use this with a dealer quote
- Find the doc fee on your quote. Dealers call it different things, such as a documentation, processing, administrative, handling, conveyance, closing, or service fee.
- Compare it with your state's limit in the tables below. Then read your state's section, because some limits depend on the price or the kind of dealer.
- If it looks too high, ask which line is the doc fee. Some states allow other paperwork fees on top of it, such as California's electronic filing charge or Maryland's electronic title and registration fee. Ask what each fee is for. If the doc fee itself is over the limit, here's what to do.
- No cap in your state? The fee is still the dealer's charge, not the government's, so compare it between dealers. See which dealer fees are legit.
Then check the whole quote with the quote check. It flags missing lines, surprise charges, and add-ons to ask about.
Trading in a car? In most states, the trade-in's value comes off the price before tax, so the tax you save is part of what the trade-in is worth to you. Where a trade-in doesn't lower the tax, selling your old car yourself may leave you more. Arkansas, Delaware, Missouri, and Vermont give a similar credit when you sell your old car yourself within a set time. Compare both ways in the trade-in vs. sell calculator, and enter the tax a trade-in would save you as the trade tax credit.
At a glance
Each state's name links to its details and sources below.
Doc fee limits, checked October 3, 2026
| State | Doc fee limit |
|---|---|
| Alabama | No state cap |
| Alaska | No state cap |
| Arizona | No state cap |
| Arkansas | $129 |
| California | $85 ($70 for some dealers) |
| Colorado | No state cap |
| Connecticut | No state cap |
| Delaware | No state cap |
| District of Columbia | No cap |
| Florida | No state cap |
| Georgia | No state cap |
| Hawaii | No state cap |
| Idaho | No state cap |
| Illinois | $377.63 for 2026 |
| Indiana | $261.72 since July 1, 2026 |
| Iowa | $180 |
| Kansas | No state cap |
| Kentucky | No state cap |
| Louisiana | $436 for 2026 |
| Maine | No state cap |
| Maryland | $800 |
| Massachusetts | No state cap |
| Michigan | $280 (or 5% if less) |
| Minnesota | $350 (or 10% if less) |
| Mississippi | $425 at new-car dealers |
| Missouri | $620.79 for 2026 |
| Montana | No state cap |
| Nebraska | No state cap |
| Nevada | No state cap |
| New Hampshire | No state cap |
| New Jersey | No state cap |
| New Mexico | No state cap |
| New York | $175 (+$5 for special plates) |
| North Carolina | No state cap |
| North Dakota | No state cap |
| Ohio | $398 for 2026 (or 10% if less) |
| Oklahoma | No state cap |
| Oregon | $250 ($200 for some dealers) |
| Pennsylvania | $490 for 2026 ($409 for some dealers) |
| Rhode Island | $400 (none under $10,000) |
| South Carolina | $225 presumed reasonable |
| South Dakota | No state cap |
| Tennessee | No state cap |
| Texas | $225 presumed reasonable |
| Utah | No state cap |
| Vermont | No state cap |
| Virginia | No state cap |
| Washington | $200 |
| West Virginia | $575 (July 2024); may be higher now |
| Wisconsin | No dollar cap; must be reasonable |
| Wyoming | No state cap |
Trade-in tax credit, checked October 3, 2026
| State | Does a trade-in lower the taxable price? |
|---|---|
| Alabama | Yes |
| Alaska | No state sales tax |
| Arizona | Yes |
| Arkansas | Yes |
| California | No |
| Colorado | Yes |
| Connecticut | Yes |
| Delaware | Yes, capped (if titled in Delaware) |
| District of Columbia | No |
| Florida | Yes |
| Georgia | Yes |
| Hawaii | No |
| Idaho | Yes |
| Illinois | Yes |
| Indiana | Yes |
| Iowa | Yes |
| Kansas | Yes |
| Kentucky | Yes |
| Louisiana | Yes |
| Maine | Yes |
| Maryland | Yes |
| Massachusetts | Yes |
| Michigan | Up to $12,000 (2026) |
| Minnesota | Yes |
| Mississippi | Yes |
| Missouri | Yes |
| Montana | No state sales tax |
| Nebraska | Yes |
| Nevada | Yes |
| New Hampshire | No state sales tax |
| New Jersey | Yes |
| New Mexico | Yes |
| New York | Yes |
| North Carolina | Yes |
| North Dakota | Yes |
| Ohio | New cars only |
| Oklahoma | Sales tax yes, excise tax no |
| Oregon | No state sales tax |
| Pennsylvania | Yes |
| Rhode Island | Yes |
| South Carolina | Yes (fee capped at $500) |
| South Dakota | Yes |
| Tennessee | Yes |
| Texas | Yes |
| Utah | Yes |
| Vermont | Yes |
| Virginia | No |
| Washington | Yes |
| West Virginia | Yes |
| Wisconsin | Yes |
| Wyoming | Yes |
State by state
Here are each state's doc fee and trade-in tax rules in plain words, with links to the laws and agency pages they come from. Local sales taxes and registration fees aren't covered here.
Alabama
Doc fee: Alabama law doesn't limit doc fees or say how they must be shown. The Department of Revenue says dealer fees, including doc fees, are taxed at the same sales tax rate as the car.
Trade-in: Alabama's sales tax on vehicles is charged on the difference between the price and the trade-in. There's no credit when the vehicle you hand over is a rental or a leased vehicle.
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Alaska
Doc fee: Alaska doesn't cap the doc fee. The advertised price must include it, and the dealer can't present it as a government fee.
Trade-in: Alaska has no state sales tax. Many cities and boroughs charge their own, each with its own trade-in rules.
- Doc fee: Alaska Statutes §45.25.440 and §45.25.460 (Alaska Legislature)
- Trade-in: Alaska Remote Seller Sales Tax Commission, FAQs for sellers
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Arizona
Doc fee: Arizona doesn't cap the doc fee. A dealer that charges one must clearly say so in its ads.
Trade-in: Arizona's state sales tax leaves out the value of your trade-in, as long as it comes off the price before the sale is completed.
- Doc fee: Arizona Revised Statutes §44-1371 (Arizona Legislature)
- Trade-in: Arizona Revised Statutes §42-5001 (Arizona Legislature)
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Arkansas
Doc fee: Arkansas caps the fee, called a service and handling fee, at $129 for new and used car dealers. A dealer that charges it must charge every retail buyer, list it on the buyer's order, and state that it isn't an official fee or required by law.
Trade-in: Arkansas taxes the difference between the price and the trade-in. If you sell your old car yourself and buy a more expensive one within 60 days, you get the same credit, with a signed bill of sale.
- Doc fee: Arkansas Code §23-112-317 (FindLaw copy)
- Trade-in: Arkansas Code §26-52-510 (FindLaw copy)
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California
Doc fee: California caps the doc fee at $85 for dealers in the DMV's private industry partner program and $70 for other dealers. A separate electronic filing charge is allowed, up to what the dealer's filing provider charges. Neither may be presented as a government fee.
Trade-in: California charges sales tax on the full selling price. The trade-in allowance can't be taken off the amount the tax is based on.
- Doc fee: California Vehicle Code §4456.5 (California Legislative Information)
- Trade-in: California Department of Tax and Fee Administration, Regulation 1654
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Colorado
Doc fee: Colorado doesn't cap the fee, which is usually called a dealer handling fee. Dealer Board rules say an advertised price must include all costs except taxes, government fees, finance charges, emissions testing, and delivery you ask for, so the fee belongs in it.
Trade-in: Colorado's state sales tax leaves out the value of a vehicle traded in at the same time and place, if both vehicles are subject to Colorado registration. Home-rule cities may have their own rules.
- Doc fee: Colorado Motor Vehicle Dealer Board rules, 1 CCR 205-1 (PDF)
- Trade-in: Colorado Department of Revenue sales and use tax rules, 1 CCR 201-4 (PDF)
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Connecticut
Doc fee: Connecticut doesn't cap the fee, called a dealer conveyance or processing fee. Since October 1, 2026, ads and price quotes must include it in the price and state its amount separately, and quotes must say it's negotiable. A buyer who files their own registration gets a proportional reduction.
Trade-in: Connecticut taxes only the difference between the sale price and the trade-in allowance.
- Doc fee: Connecticut Public Act 26-24 (PDF)
- Trade-in: Connecticut General Statutes §12-430 (Connecticut General Assembly)
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Delaware
Doc fee: Delaware doesn't cap the doc fee. A 2024 bill to cap dealer processing fees at $475 stated that Delaware has no cap, and it died without a floor vote.
Trade-in: Delaware has no sales tax. Its document fee, paid when you title the car, is figured on the price minus the trade-in, and selling your old car yourself within 60 days before or after titling counts too. The trade-in generally must be titled in Delaware, and the credit can't be more than the document fee paid when it was registered.
- Doc fee: Delaware General Assembly, House Substitute 1 for House Bill 295 (2024)
- Trade-in: Delaware Code, Title 30, Chapter 30, motor vehicle document fee
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District of Columbia
Doc fee: No DC law or rule sets a limit on a dealer's doc or processing fee. Since September 26, 2026, a fee charged on every sale has to be included in any price a dealer advertises or offers.
Trade-in: Instead of sales tax, DC charges an excise tax when you title the car. It's based on the car's fair market value from the NADA guide, so a trade-in doesn't lower it.
- Doc fee: D.C. Code §28-3904 (Council of the District of Columbia)
- Trade-in: D.C. Municipal Regulations, 18 DCMR 401, title application and excise tax
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Florida
Doc fee: Florida doesn't cap the fee, which usually appears as a predelivery service charge. Every document that shows it must say it covers costs and profit to the dealer, and advertised prices must include it.
Trade-in: Florida taxes the price minus the credit for your trade-in, on new and used cars alike, when the dealer takes the trade-in for resale.
- Doc fee: Florida Statutes §501.976 (Florida Legislature)
- Trade-in: Florida Statutes §212.09 (Florida Legislature)
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Georgia
Doc fee: Georgia's attorney general says the state doesn't regulate the amount dealers charge for dealer fees. Under the attorney general's enforcement policies, doc and processing fees must be included in any advertised price.
Trade-in: Georgia charges a one-time title ad valorem tax (TAVT) instead of sales tax. On a dealer sale, it's figured on the price minus the trade-in, and for a new car, your name and the trade-in's VIN must be on the bill of sale. Private sales get no trade-in reduction.
- Doc fee: Georgia Consumer Protection Division, Dealer fee was not included in advertised vehicle price (2024)
- Trade-in: Official Code of Georgia §48-5C-1 (FindLaw copy)
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Hawaii
Doc fee: Hawaii doesn't cap documentary fees. Ads must show the amount, and only government fees and safety inspection fees may be left out of a quoted price.
Trade-in: Hawaii has no sales tax. Dealers owe the state's general excise tax on the full price before the trade-in and usually pass it on to you, so a trade-in doesn't lower it.
- Doc fee: Hawaii Administrative Rules, chapter 16-86, motor vehicle dealers (PDF)
- Trade-in: Hawaii Revised Statutes, chapter 237, general excise tax (PDF)
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Idaho
Doc fee: Idaho doesn't cap the doc fee. An ad can leave it out of the price only if it states the fee's amount near the price.
Trade-in: Idaho charges sales tax on the price after the trade-in. The trade-in must be yours, listed on the sales papers, and part of the same deal, and trades between private parties don't count.
- Doc fee: Idaho Rules of Consumer Protection, IDAPA 04.02.01 (PDF)
- Trade-in: Idaho Code §63-3613 (Idaho Legislature)
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Illinois
Doc fee: Illinois caps the doc fee at $377.63 for 2026. That's the $300 cap that started in 2020, adjusted each January for inflation. Every contract must say the fee isn't an official fee and isn't required by law.
Trade-in: Illinois doesn't tax the value of a vehicle you trade in for another vehicle. A $10,000 limit on that credit ended January 1, 2022.
- Doc fee: Illinois Compiled Statutes, 815 ILCS 375/11.1 (Illinois General Assembly)
- Trade-in: Illinois Compiled Statutes, 35 ILCS 120/1 (Illinois General Assembly)
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Indiana
Doc fee: Indiana's $200 cap is adjusted for inflation, and since July 1, 2026, the Secretary of State won't take enforcement action on fees up to $261.72. The fee must be in the advertised price and listed separately on the bill of sale or contract. A dealer that handles BMV paperwork may also charge a separate convenience fee, but only with your written agreement.
Trade-in: Indiana doesn't tax the value of a vehicle traded for another vehicle in the same deal. The trade-in must be owned and titled in your name, and spouses count as one person.
- Doc fee: Indiana Secretary of State, Documentation preparation fee adjustment in 2026 (PDF)
- Trade-in: Indiana Department of Revenue, Sales Tax Information Bulletin 28S (PDF)
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Iowa
Doc fee: Iowa caps the doc fee at $180. It must be included in the vehicle price and disclosed in ads and offers, and the purchase agreement must say it isn't an official fee. Fees charged by a third party aren't part of it.
Trade-in: Iowa charges a one-time fee for new registration instead of sales tax. The part of the price paid with a trade-in isn't counted, and a trade between two private parties counts too. The trade-in's title generally must name the same person as the new car's title.
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Kansas
Doc fee: Kansas law doesn't limit doc fees or have a rule about how they're shown. The Department of Revenue counts administrative and handling fees as part of the taxable selling price.
Trade-in: Kansas dealers charge sales tax on the price minus the trade-in, if the trade-in allowance is listed separately on the invoice. The trade-in must be part of the same deal and titled to you, and there's no credit when a leased vehicle is traded.
- Doc fee: Kansas Department of Revenue, Business Taxes for Motor Vehicle Transactions, Pub. KS-1526 (PDF)
- Trade-in: Kansas Statutes §79-3602 (Kansas Revisor of Statutes)
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Kentucky
Doc fee: Kentucky doesn't cap the fee. Its law on financed sales lets the cash price include any processing fee, and Motor Vehicle Commission rules say an advertised price must include all charges you're required to pay.
Trade-in: Kentucky charges a motor vehicle usage tax when you title the car, instead of sales tax. The trade-in allowance comes off the taxed price, though on a used car the taxed amount can't fall below a minimum based on both cars' book values.
- Doc fee: Kentucky Revised Statutes §190.090 (Kentucky Legislature, PDF)
- Trade-in: Kentucky Revised Statutes §138.4603 (Kentucky Legislature, PDF)
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Louisiana
Doc fee: Louisiana caps the doc fee at $436 for 2026. It rises with inflation each January 1, by no more than 3% a year. The state's Motor Vehicle Commission says it must be included in the advertised price. Some fees are allowed on top, such as notary fees of up to $15 and, on a loan, a lender documentation fee of up to $35.
Trade-in: Louisiana's sales price for tax is the total minus the market value of the trade-in. The tax is collected when you title the car.
- Doc fee: Louisiana Motor Vehicle Commission, Bulletin B-2026-001, 2026 maximum documentary fee (PDF)
- Trade-in: Louisiana Revised Statutes 47:301 (Louisiana Legislature)
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Maine
Doc fee: Maine doesn't cap the fee. The attorney general's rule says an advertised price must include all extra charges, including charges for preparing documents, and only taxes and title fees may be left out.
Trade-in: When one vehicle is traded toward another, Maine taxes only the difference between the sale price and the trade-in allowance.
- Doc fee: Maine attorney general rule, chapter 104, motor vehicle advertising (Word document)
- Trade-in: Maine Revised Statutes, Title 36 §1765 (Maine Legislature)
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Maryland
Doc fee: Maryland caps the dealer processing charge at $800, and it must be reasonable. The contract must label it "not required by law," and the dealer must list the services it covers if you ask. A separate electronic title and registration fee of up to $20 per transmission is also allowed.
Trade-in: Maryland's vehicle excise (titling) tax is figured on the agreed price, including any processing charge, minus the trade-in. Only one trade-in counts per sale, and it can't be a leased vehicle.
- Doc fee: Maryland Code, Transportation §15-311.1 (Maryland General Assembly)
- Trade-in: Maryland MVA bulletin, Taxable price
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Massachusetts
Doc fee: Massachusetts has no dollar limit. The attorney general's rule says an advertised price must include documentary preparation charges, so a doc fee listed separately in an ad doesn't comply.
Trade-in: When a registered dealer takes your vehicle in trade, Massachusetts taxes only the difference between the purchase price and the trade-in allowance.
- Doc fee: 940 CMR 5.02, Massachusetts attorney general motor vehicle rule (Cornell LII copy)
- Trade-in: Massachusetts General Laws, chapter 64H §26 (Massachusetts Legislature)
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Michigan
Doc fee: Michigan caps the doc fee at $280 or 5% of the cash price, whichever is less. The cap is in the state's law on financed car sales. The Department of Insurance and Financial Services updates the dollar figure every two years for inflation; this one took effect January 28, 2025, and the next is due in 2027.
Trade-in: In 2026, Michigan takes up to $12,000 of a trade-in's value off the taxed price, or its agreed value if that's less. The limit rises $1,000 each January 1, and there's no limit from January 1, 2029. You must buy from a dealer, and the trade-in's agreed value must be on the invoice or bill of sale.
- Doc fee: Michigan Department of Insurance and Financial Services, Bulletin 2025-03-CF (PDF)
- Trade-in: Michigan Compiled Laws §205.51 (Michigan Legislature)
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Minnesota
Doc fee: Minnesota caps the doc fee at $350 or 10% of the sale or lease value, whichever is less, for cars to be registered in Minnesota. It covers only closing paperwork the dealer actually does, must be listed separately, and can be left out of the advertised price. An optional electronic transfer fee, which you must agree to, is separate.
Trade-in: Minnesota deducts the trade-in value from the total selling price before figuring its motor vehicle sales tax.
- Doc fee: Minnesota Statutes §168.27 (Minnesota Revisor of Statutes)
- Trade-in: Minnesota Statutes §297B.01 (Minnesota Revisor of Statutes)
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Mississippi
Doc fee: Mississippi caps the document/service fee at $425 for dealers that hold a new-car franchise; no cap was found for lots that sell only used cars. The fee must be charged to every buyer, itemized on the buyer's order, and labeled as not an official fee and not required by law.
Trade-in: Mississippi taxes a dealer's vehicle sale on the difference between the price and the trade-in, when the trade-in is the kind of vehicle the dealer normally sells.
- Doc fee: Mississippi Motor Vehicle Commission Regulation 8.1 (PDF)
- Trade-in: Mississippi Administrative Code, Title 35, Part IV, Rule 11.02.103 (Cornell LII copy)
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Missouri
Doc fee: Missouri caps the administrative fee at $620.79 for 2026. It rises each year with inflation, and each new figure takes effect February 1. The dealer must charge the same fee to all retail buyers, list it separately, and say it isn't an official fee or required by law.
Trade-in: Missouri taxes only the price above the trade-in allowance, as long as a bill of sale or other record shows it. If you sell your old vehicle yourself within 180 days before or after buying, you get the same credit by showing the bills of sale.
- Doc fee: Missouri Department of Revenue, Dealers and lienholders (maximum dealer administrative fees)
- Trade-in: Missouri Revised Statutes §144.025 (Missouri Revisor of Statutes)
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Montana
Doc fee: Montana doesn't limit the amount. A dealer that adds a documentary fee to the cash price must fully disclose it in every binding contract.
Trade-in: Montana has no general sales tax, so there's no sales tax for a trade-in to lower.
- Doc fee: Administrative Rules of Montana 23.19.204 (Montana Secretary of State)
- Trade-in: Montana Department of Revenue, General sales tax
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Nebraska
Doc fee: Nebraska doesn't cap the doc fee. An advertised price must include every charge except taxes and government fees, and the state's dealer licensing board tells dealers that means including the doc fee. A separate $50 limit applies only to an optional fee for electronic title and registration.
Trade-in: Nebraska leaves the value of a vehicle taken in trade out of the taxable price.
- Doc fee: Nebraska Motor Vehicle Industry Licensing Board, 2026 compliance seminar slides (PDF)
- Trade-in: Nebraska Revised Statutes §77-2701.35 (Nebraska Legislature)
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Nevada
Doc fee: Nevada has no dollar limit. An advertised price can leave out the document preparation charge only if the ad names it and gives the amount.
Trade-in: Nevada's sales tax leaves out the allowance a dealer gives for a used vehicle taken in trade.
- Doc fee: Nevada Administrative Code, chapter 482, including NAC 482.150 (Nevada Legislature)
- Trade-in: Nevada Revised Statutes, chapter 372 (Nevada Legislature)
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New Hampshire
Doc fee: New Hampshire doesn't cap the dealer's administrative (doc) fee. The Banking Department says a dealer may charge it only if it charges it on every sale, cash or financed, and includes it in the cash price. Older sources mention a "$27 documentary fee" cap, but that was the title charge, not a limit on this fee.
Trade-in: New Hampshire has no general sales tax, so there's nothing for a trade-in to lower.
- Doc fee: New Hampshire Banking Department, RSA 361-A FAQ
- Trade-in: New Hampshire Department of Business and Economic Affairs, Low tax burden
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New Jersey
Doc fee: New Jersey has no dollar limit. Each documentary service and its price must be itemized in writing on the sales document, and the dealer can't say a government requires it. Price ads must include it.
Trade-in: New Jersey taxes the purchase price minus the trade-in when the trade happens at the same time as the purchase. Selling your car to the dealer in a separate deal doesn't count.
- Doc fee: N.J.A.C. 13:45A-26B.3, documentary service fee (Cornell LII copy)
- Trade-in: N.J.A.C. 18:24-7.4, tax on the purchase price with a trade-in (Cornell LII copy)
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New Mexico
Doc fee: New Mexico has no dollar cap. Under the attorney general's rule, calling a charge a documentary fee is deceptive unless it pays for processing documents actually required by law. Cash buyers with no loan must be told in writing that they can register the car themselves without paying a dealer transfer service fee.
Trade-in: New Mexico charges a motor vehicle excise tax when you title the car, instead of sales tax. Trade-in allowances may be deducted from the price.
- Doc fee: New Mexico rule 12.2.4 NMAC, advertising and sale of motor vehicles (State Records Center and Archives)
- Trade-in: New Mexico Statutes §7-14-4 (Justia copy)
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New York
Doc fee: New York caps the fee at $175, and it's allowed only if the dealer actually files your title and registration; special or distinctive plates can add up to $5. The invoice must call it the dealer's optional fee and say it isn't a DMV fee. Unless a lien is being recorded or the dealer issued the plates, you can file the application yourself at a DMV office.
Trade-in: New York charges sales tax on the price after the trade-in, when the trade-in is applied to that purchase in the same deal.
- Doc fee: 15 NYCRR 78.19, New York DMV dealer rules (Cornell LII copy)
- Trade-in: New York State Department of Taxation and Finance, Tax Bulletin ST-860
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North Carolina
Doc fee: North Carolina has no dollar cap. A dealer may charge the fee only if it posts a large notice with the amount, states the fee in price ads, and lists it separately on the buyer's order, and it may waive or reduce it. A separate fee for online registration isn't part of this rule.
Trade-in: North Carolina taxes vehicles with a highway use tax, paid when the title is issued, instead of sales tax. It's figured on the price minus the trade-in allowance, plus any doc fee.
- Doc fee: North Carolina General Statutes §20-101.1 (North Carolina General Assembly)
- Trade-in: North Carolina General Statutes §105-187.3 (North Carolina General Assembly)
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North Dakota
Doc fee: North Dakota's laws and rules don't cap doc fees or say how they must be shown, and no official page addresses them.
Trade-in: North Dakota charges a motor vehicle excise tax instead of sales tax, and the trade-in allowance is deducted from the total selling price.
- Doc fee: North Dakota Century Code, chapter 39-22, motor vehicle dealer licensing (PDF)
- Trade-in: North Dakota Century Code, chapter 57-40.3, motor vehicle excise tax (PDF)
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Ohio
Doc fee: Ohio caps the documentary service charge at $398 for 2026, or 10% of the contract price if that's less. That contract price leaves out taxes, title and registration fees, and negative equity. The cap is adjusted for inflation each year, and $412 is already set for 2027.
Trade-in: Ohio takes the trade-in off the taxed price only when you buy a new car from a new-car dealer. On a used car, tax is on the full price even with a trade-in.
- Doc fee: Ohio BMV Dealer Licensing, Documentary service charge
- Trade-in: Ohio Revised Code §5739.01 (Ohio Legislature)
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Oklahoma
Doc fee: Oklahoma has no dollar cap. For new cars, the doc fee is a dealer-added fee that can't be described as required by law or a government agency, and it must be in the advertised price. Used-car ads may leave out a processing fee.
Trade-in: Oklahoma charges two state taxes on a vehicle sale. The 1.25% state sales tax is figured on the price minus the trade-in, but the 3.25% excise tax is on the actual sales price with no trade-in deduction.
- Doc fee: Oklahoma Administrative Code 465:15-1-2 (Cornell LII copy)
- Trade-in: Oklahoma Statutes, Title 68 §1355 (Oklahoma State Courts Network)
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Oregon
Doc fee: Oregon caps the doc fee at $250 if the dealer uses an electronic registration service and $200 if not. The fee is negotiable, except the $35 the dealer pays that service. A dealer that charges the higher fee must tell you that you can choose not to use the service.
Trade-in: Oregon has no sales tax. Dealers owe a 0.5% privilege tax on new vehicles and may pass it on to you, and a trade-in doesn't lower it.
- Doc fee: Oregon Revised Statutes, chapter 822 (Oregon Legislature)
- Trade-in: Oregon Administrative Rule 150-320-0400 (Oregon Secretary of State)
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Pennsylvania
Doc fee: Pennsylvania caps the documentary preparation fee for 2026 at $490 if the dealer processes title and registration electronically, or $409 if not, adjusted each January for inflation. The fee is negotiable and isn't a state fee. Dealers may also charge the actual title and registration costs, including messenger, notary, and electronic transaction fees.
Trade-in: Pennsylvania taxes the purchase price minus the trade-in allowance if the trade-in happens at the same time as the sale. Selling your car to the dealer in a separate deal doesn't count.
- Doc fee: Pennsylvania State Board of Vehicle Manufacturers, Dealers and Salespersons, 2026 documentary preparation fee notice (PDF)
- Trade-in: Pennsylvania Code, 61 Pa. Code §31.44
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Rhode Island
Doc fee: Rhode Island caps the doc fee at $400 and allows none on a vehicle sold for under $10,000. A separate title preparation fee of up to $20 may be charged, with a written statement of the services. Dealers can't add look-alike fees to get around these rules.
Trade-in: Rhode Island doesn't tax the part of the price covered by a trade-in when you buy a new or used car. The rule covers private passenger cars, so other vehicle types may not qualify.
- Doc fee: Rhode Island DMV rule 280-RICR-30-20-1 (Rhode Island Secretary of State)
- Trade-in: Rhode Island General Laws §44-18-30 (Rhode Island Legislature)
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South Carolina
Doc fee: South Carolina calls it a closing fee. A dealer must file its maximum fee with the Department of Consumer Affairs, and a filed fee of $225 or less is considered approved; a higher one may be reviewed against the dealer's costs. The department posts every dealer's filed fee online each month.
Trade-in: South Carolina charges an infrastructure maintenance fee instead of sales tax: 5% of the price after the trade-in, up to $500. Because of that cap, a trade-in lowers the fee only when the price minus the trade-in is under $10,000.
- Doc fee: South Carolina Code of Laws, Title 37, Chapter 2 (§37-2-307)
- Trade-in: South Carolina Code of Laws, Title 56, Chapter 3 (§56-3-627)
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South Dakota
Doc fee: South Dakota has no dollar limit. The law lets the cash price include a documentary fee for services actually rendered, and dealer ad rules let the advertised price leave doc fees out.
Trade-in: South Dakota charges a motor vehicle excise tax instead of sales tax. For new vehicles, and used vehicles sold by dealers, the trade-in value is deducted to set the taxable price.
- Doc fee: South Dakota Codified Laws §54-3A-1 (South Dakota Legislature)
- Trade-in: South Dakota Codified Laws §32-5B-4 (South Dakota Legislature)
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Tennessee
Doc fee: Tennessee doesn't cap the fee. The amount must be stated separately and clearly on the contract or invoice before you sign, and the dealer can't claim a government agency requires it. Ads must say dealer fees aren't in the advertised price and list each one's amount.
Trade-in: Tennessee taxes the net difference after the trade-in credit. The trade-in must be like kind and listed on the invoice by model and serial number, and the credit can't be more than the price of the vehicle you buy.
- Doc fee: Tennessee Code §55-17-114 (FindLaw copy)
- Trade-in: Tennessee Department of Revenue, County Clerk Sales and Use Tax Manual (PDF)
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Texas
Doc fee: In Texas, a doc fee of $225 or less is presumed reasonable. To charge more, a dealer must first file a notice and a cost analysis with the Office of Consumer Credit Commissioner, which reviews it. The fee must be charged to cash and credit buyers alike, with a notice that it isn't an official fee.
Trade-in: Texas figures its motor vehicle sales tax on the sales price minus any trade-in allowance.
- Doc fee: 7 Texas Administrative Code §84.205 (Cornell LII copy)
- Trade-in: Texas Comptroller, Motor vehicle sales and use tax
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Utah
Doc fee: Utah's Motor Vehicle Enforcement Division says there's no limit. A dealer that charges a documentary service fee must post a sign with the amount saying it isn't set by law or rule, and itemize the fee on the disclosure form.
Trade-in: Utah lets a trade-in allowance be left out of the amount the tax is figured on, when the trade is part of a single deal between the two parties in the same contract. A leased vehicle counts only after it's bought out and tax is paid on the buyout.
- Doc fee: Utah Motor Vehicle Enforcement Division, Sales information and FAQ
- Trade-in: Utah State Tax Commission, Publication 5 (PDF)
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Vermont
Doc fee: Vermont doesn't cap the doc fee. The attorney general's advertising rule says an advertised price must be the full price, leaving out only tax, registration, and title fees, so a doc fee belongs in it.
Trade-in: Vermont's purchase and use tax leaves out the trade-in allowance if you already paid Vermont's tax on the vehicle you trade and it's in your name. Unusually, money from selling your old car yourself within three months after the purchase also counts, up to its J.D. Power clean trade-in value.
- Doc fee: Vermont Consumer Protection Rule CP 118, automobile advertising (Cornell LII copy)
- Trade-in: Vermont Statutes, 32 V.S.A. §8902 (Vermont Legislature)
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Virginia
Doc fee: Virginia's Motor Vehicle Dealer Board says there's no limit on the processing fee. It must be itemized on the buyer's order and shown on a sign in the sales area, and an ad whose price leaves it out must show the amount. A separate online filing fee passed through to the state's e-filing provider gets its own line.
Trade-in: Virginia's motor vehicle sales and use tax is on the full sale price, with no deduction for a trade-in. The DMV's example: a $40,000 car with a $5,000 trade-in is still taxed on $40,000.
- Doc fee: Virginia Motor Vehicle Dealer Board, Consumers
- Trade-in: Code of Virginia §58.1-2401 (Virginia Law)
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Washington
Doc fee: Washington caps the doc fee at $200. Before you sign, the dealer must disclose it in writing as a negotiable fee, listed apart from the price, taxes, and other fees. A 2026 bill would have raised the cap to $250, but that part didn't become law.
Trade-in: Washington's sales taxes leave out a separately stated trade-in of like kind, and paying off a loan on the trade-in doesn't reduce the credit. The exception is the 8% luxury tax on value over $102,000, which the trade-in doesn't lower.
- Doc fee: Revised Code of Washington 46.70.180 (Washington Legislature)
- Trade-in: Washington Department of Revenue, Trade-ins (auto dealers)
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West Virginia
Doc fee: West Virginia has a cap, set by the DMV Commissioner under W. Va. Code 17A-6-18a, but the current amount isn't published anywhere official. The last figure found is $575 (effective July 1, 2024), and it may have risen since. Ask the dealer to show you the current limit.
Trade-in: West Virginia's motor vehicle sales tax, collected when you title the car, leaves out the value of a trade-in you already paid the tax on. The trade-in must be titled in West Virginia in exactly the same name as the vehicle you're buying.
- Doc fee: West Virginia Code §17A-6-18a (West Virginia Legislature)
- Trade-in: West Virginia Code §11-15-3c (West Virginia Legislature)
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Wisconsin
Doc fee: Wisconsin has no dollar cap, but the service fee must be reasonable, and the DOT may audit it. The dealer must fully disclose it and can't raise it after that, and the contract must say it isn't required by law. A separate title and registration processing fee set in a dealer's DMV contract is allowed.
Trade-in: Wisconsin leaves the trade-in allowance out of the taxed price when the trade goes to the same seller in the same deal. Money from selling your car separately doesn't count.
- Doc fee: Wisconsin Administrative Code, chapter Trans 139 (Wisconsin Legislature)
- Trade-in: Wisconsin Statutes §77.51(15b)(b)5 (Wisconsin Legislature)
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Wyoming
Doc fee: Wyoming law doesn't limit doc fees or have a rule about how they're shown. The Department of Revenue says documentary fees are part of the taxable sales price.
Trade-in: Wyoming leaves the trade-in value out of the sales price when the trade and the purchase happen in one transaction. The trade-in's title must already be in your name.
- Doc fee: Wyoming Department of Revenue, Form 107, sales and use tax statement for motor vehicle sales (PDF)
- Trade-in: Wyoming Statutes, Title 39 (PDF)
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If a dealer charges more than your state allows
First, make sure you're comparing the right line. Ask the dealer which line is the doc fee and what the rest is for. Some states allow separate fees, such as California's electronic filing charge.
In South Carolina and Texas, the amount in the table isn't a hard limit. A dealer can charge more after filing with the state, which can review the fee. Ask whether your dealer filed.
If the doc fee itself is over your state's limit:
- Ask the dealer in writing to bring it down to your state's limit. An email gives you a dated record.
- Keep the written quote, the buyer's order, and every message about the fee.
- If the dealer won't fix it, contact your state attorney general's consumer protection office or the state agency that licenses dealers. The sources in your state's section show the law or rule that sets the limit. Find your state consumer protection office.
Already signed? You can still ask the dealer in writing to fix the charge. See what to do when a deal wasn't as promised, including where to file a complaint.
Related help
- Which dealer fees are legit?What to pay, what to question, and what you can refuse.
- Check a quote for surprise feesEnter each line from your written quote and see what's missing or added.
- Trade in or sell it yourself?Compare what you'd keep either way, including any trade-in tax savings.
- Get an out-the-door price in writingWhat a complete quote includes, and an email to ask for one.
More on fees and add-ons
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Help a friend or family member check before they sign.
Sources
- FTC: Automobile pricing transparency FAQ (staff guidance on fees, doc fees, and add-ons)
- USA.gov: Find your state consumer protection office
- USA.gov: Find your state motor vehicle agency
These sources explain general rules. Check current requirements in your state and the terms in your own paperwork.