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

  • Buying and Selling > Buying a New or Used Car > Vehicle 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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• Is the new car sales tax rate the same across all states?

  • Buying and Selling > Buying a New or Used Car > Vehicle Tax

  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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• What is the new car tag title tax in my state?

  • Buying and Selling > Buying a New or Used Car > Vehicle Tax

  The grid below outlines the new car use and sales tax for each state. Before you jump in, note that the method used to determine your sales tax varies from state to state. Most often, you’ll pay a percentage of the new car’s price; however, some states – and even the towns, cities, and counties within the states – will use different methods. Also note that in addition to sales tax, new car costs generally include additional fees such as title and registration costs and any license plate transfer costs. You might even need to pay a use tax; some states charge use tax in instances when you don’t have to pay a sales tax. You’ll want to check with your state motor vehicle agency not only to make sure the taxes haven’t changed and to get specific..

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• If I buy an out of state car which state's sales tax is applicable?

  • Buying and Selling > Buying a New or Used Car > Vehicle Tax

  You will pay the sales tax based on wherever the car was bought. So, for example, if you live in Ohio but buy your car in Pennsylvania, you will pay the Pennsylvania sales tax rate. This applies to both new car and used car purchases. However, here's where it gets tricky. Depending on where you live, your state's motor vehicle agency may require you to provide a receipt showing the sales tax you paid. If it's less than what you would have paid in your home state, you may have to pay the difference in order to get your license plates or title your car. Keep in mind that sales tax can differ by state, county, and city. You should always calculate the sales tax on your car purchase as it can make a significant difference. If you're unsure about the prevailing tax rates, call the dealer and..

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• I need to calculate car sales tax.

  • Buying and Selling > Buying a New or Used Car > Vehicle Tax

  Price is not the main factor in determining used car sales tax. Instead, it's your state or county of residence. Tax rates generally differ from county to county. For instance, a resident of Erie County, in western New York, pays an 8.75 percent sales tax rate, while across the state, in Saratoga county, residents there only pay a 7 percent rate. If you don't know your county's tax rate, or if you're buying out-of-state, you can find out by contacting your county tax revenue office, or if you're buying from a dealership, asking the finance manager.  If you're buying a new vehicle you'll need to determine the final price. This could be based on three scenarios: Total purchase price Purchase price after trade-in deduction Purchase price after cash incentive deduction. Once you have the..

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