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Related Questions from DMV Answers

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

  • Buying and Selling > Buying a New or Used Car > Vehicle 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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• How can I calculate sales tax on used cars?

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

  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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• 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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• If I buy a used car, do I have to pay vehicle tax?

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

  Most likely. Most states require residents to pay vehicle tax during the titling and/or registration process of a newly purchased used car. The sales tax is generally a percentage of either the purchase price or the value of the vehicle. West Virginia, for example, requires 5% of the purchase price; Texas, on the other hand, requires 6.25% of the vehicle’s value based on the Standard Presumptive Method. Sometimes the sales tax for used cars is the same as the sales tax for new cars. For example, Indiana residents pay 7% whether the vehicle is new or used. Keep in mind that your sales tax isn’t the only cost you’ll have to cover when you purchase a used vehicle. During the titling and registration process, you might also have to pay fees for: Transferring the title..

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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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