Vehicle Tax Answers

• 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 locati ...

• Do I need to file a personal property tax for my vehicle every year?

  This is a state-by-state issue. You'll need to contact your local DMV office for information regarding annually paying personal property tax for your vehicle. You can do this by calling, or visiting your state's DMV Web site and looking under vehicle registration. Other states may only charge y ...

• 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, ...

• 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 mea ...

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

  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 ...

• 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. Jus ...

• 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 coun ...

• Is anyone exempt from paying vehicle tax?

  Yes, some people are exempt from paying vehicle tax. It depends on the state and the situation. Some states, like Washington, are currently offering exemptions on the Motor Vehicle Sales/Use Tax on new hybrid, electric, or alternative energy cars until January 1, 2011. Certain federal governmen ...

• Do I still get a car tax break if I buy a hybrid?

  You can get a federal tax break on certain hybrid models until December 31, 2010. The sales tax credit varies depending on the model, but can be as high as $3,400. However, don't expect to get that much. Once a manufacturer sells a designated amount of hybrid vehicles, the tax credit begins to d ...

• I need to calculate car sales 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 Saratog ...

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

  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, cit ...

• How much will it cost me to pay excise tax on my vehicle?

  Most vehicles are assessed an excise tax based on purchase price. Each state, however, applies its own percentage rate on which to base the tax amount. In Maryland, for instance, the excise tax is based on 6% of the vehicle's purchase price. Whereas in Oklahoma the amount is also based on the pu ...

• If I buy a used car, do I have to pay 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 pr ...