Car Sales Tax By State

Within states that have different car tax rates for different cities you pay the car tax rate based on your home address.

Car sales tax by state. If you bought your car from a dealer that sales price is the amount you actually paid including any shipping or dealer prep fees but less any trade in allowances discounts or rebates. Find your state below to determine the total cost of your new car including the. Cars built before 1973 are typically exempt from sales taxes and vehicles used for certain types of farming are as well. If for example you pay a 10 sales tax on 20 000 that s an additional 2 000 you must spend not counting doc fees and dmv fees.

We ll review the vehicle property tax for each state in the table below. Most states charge sales tax on vehicles. Below we list the state tax rate although your city or county government may add its own sales tax as well. Remember to convert the sales tax percentage to decimal format.

While you may be used to paying sales tax for most of your purchases the bill for sales tax on a vehicle can be shocking. Choose any state for more information including local and municiple sales tax rates is applicable. Sales tax is charged on car purchases in most states in the u s. Multiply the net price of your vehicle by the sales tax percentage.

For state use tax rates see use tax by state. You also don t need to pay the sales tax if you re disabled. There are other loopholes too. For example a 9 sales tax on a 30 000 car is 2 700.

Some states require you to pay an annual tax on the value of your vehicle. If a vehicle sales tax applies the vehicle seller must collect the tax when the sale transaction occurs. This way you don t have to pay a sales tax on your vehicle in the new state when you re register it. Some states provide official vehicle registration fee calculators while others provide lists of their tax tag and title fees.

Can i pay less in another city. Whether you buy a new or used vehicle in louisiana you must pay 4 percent state sales and use tax on the total sales price of the vehicle. To compute state sales taxes on motor vehicles in most states multiply the purchase price of the vehicle by the tax rate that applies. Many states allow local governments to charge a local sales tax in addition to the statewide sales tax so the actual sales tax rate may vary by locality within each state.

For example if your state sales tax rate is 4 you would multiply your net purchase price by 0 04. Sales tax on a new vehicle can take people by surprise. Auto sales tax and the cost of a new car tag are major factors in any tax title and license calculator. While tax rates vary by location the auto sales tax rate typically ranges anywhere from two to six percent.

Typically the more money a vehicle costs the more sales tax a buyer pays.