Asked by: Aurelian Gredillaautomotive auto buying and selling
What sales tax do I pay when buying a car?
Last Updated: 22nd March, 2020
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Also asked, how do you calculate sales tax on a car?
Multiply the price of your new car by the sales tax rate to get the total tax bill. For example, if the state taxes are 6 percent, and your car's taxable cost is $20,000, you need to pay $1,200 in taxes.
One may also ask, do car dealers include sales tax? This means that if you purchase a car in any of these states, you do not have to pay any sales tax. However, if you live in a sales tax state, there are some dealerships that are charged, by law, with collecting a sales tax. Unless you are planning to fly out and drive the car back yourself.
Accordingly, how much is tax title and fees at a dealership?
Expect to pay $35 for registration and $33 for the title, but there's no plate fee or cap on dealer fees. Between $135 and $187 will cover two years of registration, and then there's $100 for the title and $10 to transfer plates. Dealer fees are capped at $300.
Is car sales tax based on where you live?
Yes, you must pay sales tax when you buy a used car if you live in a state that has sales tax. You will pay it to your state's DMV when you register the vehicle. The state where you register the car is the one that charges the sales tax, not the state where you bought the car.