The vehicle license fee (VLF) is a value-based fee California charges when you register a vehicle and every year you renew. It's 0.65% of the vehicle's purchase price or value. DMV's fee schedule says the amount decreases for the first 11 renewal years, or until the vehicle is transferred, so buying a used car can reset the VLF based on what you paid. It's usually the biggest value-based piece of a registration bill.
Educational information only. This article is not legal, tax or financial advice.
In this article
- How the VLF is calculated
- Example
- The VLF next to other registration fees
- Frequently asked questions
How the VLF is calculated
| Detail | |
|---|---|
| Rate | 0.65% of the purchase price or value |
| When paid | Original registration, transfer and each renewal |
| Over time | Decreases for the first 11 renewal years, or until the vehicle is transferred |
| Historical vehicles | $2 (VC §5004) |
| Late payment | Penalties are a percentage of the VLF and weight fee |
| Legal basis | Revenue and Taxation Code §§10751–10753 |
Source: California DMV registration fees (Opens in new window).
Example
A used car bought for $15,000: 0.65% × $15,000 = about $97.50 in VLF for that registration year, before any decline in later years. Use DMV's fee calculator for the exact amount.
The VLF next to other registration fees
| Fee | Amount (DMV schedule) |
|---|---|
| Registration fee | $76 |
| CHP fee | $34 |
| Vehicle license fee | 0.65% of value |
| Transportation Improvement Fee | $33–$231 by vehicle value |
| Transfer fee | $15 |
Full list: What taxes and fees do you pay on a used car in California?
Frequently asked questions
How much is the vehicle license fee in California?
0.65% of the vehicle's purchase price or value, paid at registration and each renewal.
Does the VLF go down every year?
Yes, for the first 11 renewal years, or until the vehicle changes owners.
Is the VLF tax deductible?
It may be, as a value-based personal property tax if you itemize on your federal return. See Is car sales tax deductible?
Related questions
- What taxes and fees do you pay on a used car in California?
- How to register a used car in California
- Is car sales tax deductible?
- Back to the California Dealer License FAQ
Resources
- California DMV: Registration fees (Opens in new window)
- California DMV: Vehicle registration fee calculator (Opens in new window)
- DMV manual §3.075: Vehicle License Fee (Opens in new window)
Sources: DMV registration fees (Opens in new window) (0.65%, 11-year decline, fee amounts; page updated Oct. 14, 2026). Verified 2026-10-16.
This article is for educational purposes only and is not legal, tax or financial advice. Fees change; use DMV's fee calculator for exact amounts.