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Related Questions from DMV Answers

• Is new car sales tax the same rate as regular sales tax?

  It can be, but it depends on where you live. Many states charge the same percentage tax rate for a new car as you would pay for a sweater purchased at a local store. But, some states throw in surcharges or excise taxes on new car purchases in addition to the customary sales tax. And, of course, don't confuse state sales tax with the myriad of dealer fees most car dealers impose. It's important to account for your new car sales tax before committing to your purchase. Some states carry high sales taxes, and if you live in one of these states, a car that was borderline affordable before taxes could be pushed into the budget-breaker category once you calculate this extra fee...

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• Where do I go to pay the used car sales tax?

  If you buy from a dealer, you will pay the dealer. But if you buy from an individual, you will pay a used car sales tax during titling and registering. Depending on your state, this will be handled by one of the following: Your DMV office and/or any licensed substation Your town clerk Your county treasurer Your sales tax rate will depend on your county of residence. The same sales tax rate your county charges for say groceries or clothes, will also be applied to your used vehicle. The sales tax will be based on the price listed on the car's title or the bill of sale. And in case you're wondering, don't collude with the seller in listing a false lower price. Any suspiciously low price will raise an immediate red flag, prompting your tax agent to base the sales tax on the vehicle's listed..

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• Does auto sales tax vary by location?

  It sure does. And, not only does the auto sales tax differ depending on your home state, but it can vary according to where you live within the state. That's because county and municipality taxes come into play, too. While these taxes are fairly small in terms of percentages, they can make a meaningful impact when the purchase price involves thousands of dollars. Considering this, it's smart to calculate your sales tax (state, county, and local) before you agree to buy a car. If you're dealing with a tight budget, these taxes can make the difference between a car that's within your requirements and one that's out of your financial reach. And, don't forget to add in any dealer fees, too. If you're not sure about the various sales tax rates, call the dealer and ask about the county..

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• Is the new car sales tax rate the same across all states?

  No, the sales tax differs by state. In fact, even within a state, the tax rate varies. That’s because county and city taxes come into play, too. However, the new car sales tax rate doesn’t have to be a mystery – even if you’re buying a car from an out-of-state dealer. Just call the dealership and ask for the state, county, and city tax rates. Then, grab a calculator – or use an online calculator – and figure out how much in taxes you’ll be paying. It’s important to do this, especially if you’re on a restricted budget. The various sales taxes can push a car from the affordable category into the budget-breaker category. And, don’t forget to add in the dealer fees, too, as they can add up...

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• How can I calculate sales tax on used cars?

  Your first step would be to just to find out the applicable sales tax rate. This can be tricky. Not only do you need to be aware of the state sales tax, but the local tax, as well. And, local taxes vary by town, and even school district. The sales tax on used cars is based on the seller's location, not where you live. If you're unsure about the tax rate governing the seller's area, call the dealer and ask. Or, call the town's city hall; someone there will know. Once you've learned the sales tax rate, it's simple to calculate the tax. Just bring out your trusty calculator -or use an online calculator - and apply the percentage to the base sales price of the used vehicle. No matter how you determine the cost, it's a smart to do so before committing to the purchase, especially in..

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