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

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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 ask for this information.

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