No, you generally cannot use out-of-state (OLS) tags on a new car if you are a resident of Virginia. Virginia law requires residents to title and register their vehicles with the Virginia Department of Motor Vehicles (DMV) within 30 days of moving to the state or purchasing a vehicle. Attempting to use tags from another state to avoid Virginia's registration fees, state sales tax, or personal property tax (PPT) is illegal and can result in significant penalties.
The core issue revolves around your state of residency. If you live in Virginia, you must register your car there. The only common exceptions are for active-duty military personnel stationed in Virginia who maintain legal residency in another state, and in some cases, full-time students. For the average resident, registering a new car in another state like Montana or Delaware (often for tax advantages) while living in Virginia constitutes tax evasion. The Virginia DMV actively enforces this through its Tax Evasion Audit program, which cross-references data to identify residents with out-of-state plates.
The financial risks are substantial. If caught, you will be liable for all unpaid Virginia taxes and registration fees, plus substantial penalties and interest. The local PPT, which varies by county or city, can add a significant recurring cost. Furthermore, your vehicle could be impounded, and you may face misdemeanor charges.
| Potential Consequence | Description | Typical Cost/Range |
|---|
| Back Taxes & Fees | Liable for all unpaid state sales tax (4.15% statewide, plus local taxes) and registration fees. | Hundreds to thousands of dollars |
| Civil Penalty | A fine for willful tax evasion, calculated as a percentage of the taxes owed. | Up to the amount of the tax due |
| Interest Charges | Interest accrues on the unpaid tax balance from the original due date. | Varies based on state rate |
| Local Property Tax | Must pay overdue local Personal Property Tax (PPT) to your county/city. | Varies significantly by locality |
| Vehicle Impoundment | Law enforcement can impound the vehicle until it is properly registered. | Towing and storage fees |
| Misdemeanor Charge | Possible criminal charge for titling/registration fraud. | Fines and potential jail time |
The process for correctly registering a new car in Virginia is straightforward. You must visit a DMV customer service center with the manufacturer’s certificate of origin (MCO) or out-of-state title, proof of Virginia insurance, and a valid ID. You will pay the state sales tax and registration fees at that time. After registration, your local county or city will bill you for the annual personal property tax.
