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 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
  • Registering the vehicle in your name
  • Transferring your license plates
Before you head out to pay your taxes and other fees, be sure to contact your state motor vehicle agency to get exact amounts as well as information about acceptable forms of payment.

Visitor Comments

No visitor comments posted. Post a comment

Post Comment for "If I buy a used car, do I have to pay vehicle tax?"

To post a comment for this article, simply complete the form below. Fields marked with an asterisk are required.

User Opinions

100% thumbs up 0% thumbs down (8 votes)

How would you rate this answer?

Thank you for rating this answer.

DMVAnswers.com (the Site) is a privately owned, for-profit Web site owned by OnlineGURU, Inc. The Site specifically disclaims any and all connection with any state bureau, division, or Department of Motor Vehicles, or any state or federal government agency. DMVAnswers.com does its best to get the correct information but does not claim responsibility for the accuracy of the information displayed herein. It is not complete or certified information. The information provided on DMVAnswers.com is not legal advice, DMVAnswers.com is not a lawyer referral service, and no attorney-client or confidential relationship is or should be formed by use of the site. Additionally, the Site expressly disclaims any and all liability for third party links or resources on the Site and any claims of negligence arising from same. For official information, please consult your state motor vehicle department.