Car Tax by State

SELECT STATE LINK AFTER REVIEWING LINK TIP TO FIND TOTAL VEHICLE SALES TAX RATES AND SOURCE DATA

United States vehicle sales tax varies by state, and often by counties, cities, municipalities, and localities within each state.

Car tax is paid based on the state where the car is first registered, so if you live in California and buy a car in Oregon, you will have to pay when you register the car back in your home state.

Within states that have different car tax rates for different cities, you pay the car tax rate based on your home address.

Private party sales within most states* are not exempt from car tax, but unlike dealer transactions the seller does not collect the car tax; the buyer pays it upon registering the vehicle.

Almost all states levy car tax based on the agreed sales price minus a credit for the trade-in vehicle's agreed value.*
Trade-ins must be registered or titled in the purchaser's name in the state of trade to receive credit.

STATE

CAR TAX RATE

TOOLS

LINK TIP

Alabama

2% + county rate
+ city rate = total

Tax Brochure

Select city then click both city and county box. Add city, plus county, plus state car tax for total.

Alaska

0% + municipality

Tax Guidebook

Select location. Select "Sales Tax" in Government section. Run report to view sales tax rates.

Arizona

5.6% + county + city

Tax Calculator

View pg 1 of chart, find total for location. PPX

Arkansas

6.5% + county + city
= rate on 1st $2,500
-- plus --
6.5% on balance = total
-----------
0% on vehicles
priced at $4,000 or less

Look-up Tool

USPS Zip+4

Guidebook

Guide 1201d

View chart, find city rate, find county rate, apply car tax rate formula.

72201-1400 is sample zip code for Look-up Tool. Use USPS address tool to find full zip codes.

California

7.25% + local

Look-up Tool
Fee Calculator
Dealer Handbook
Dealer Tax Guide

Select rate listed by city. Rate shown is combined total. 86T

Colorado

2.9% + county + city
+ district = total

Reference Guide

Pamphlet 62

Select Business, then scroll down and select View Local Sales Tax Rates, then select city. Add percentages.
(Exp) Denver: 7.65%

Connecticut

6.35% for vehicle $50k or less
-----------
7.75% for vehicle over $50,000

Car tax as listed.

Delaware

4.25% "Motor Vehicle
Document Fee"

Fee Calculator

District of
Columbia

6% "Excise Tax" for
vehicles under 3,499 lbs
-----------
7% for vehicles 3,500
to 4,999 pounds
-----------
8% for vehicles 5,000
pounds or more
-----------
0% for hybrid vehicles
rated over 40 mpg by
fueleconomy.gov

Tax Calculator

fueleconomy.gov

D.C. Tax Facts

Use fuelecomomy.gov mpg look-up tool to determine qualification for D.C. hybrid car tax exemption. 86T

Florida

6% + local "discretionary"
= rate on 1st $5,000
-- plus --
6% on balance = total

Fee Calculator
Dealer Guide
Industry Guide
GT-300015
GT-800030
Handbook

Download most current Discretionary Sales Surtax Information. View local discretionary tax and apply formula.

Scroll down to Sales Taxes when using Fee Calculator.

Georgia

4% + county

Booklet

Select most recent Sales Tax Rates link. Find county rate, add 4% for total. Note: Vehicles are exempt from the 1% Atlanta tax add. PPX

American states work together to ensure that consumers pay the proper car tax by state. If you live in the United States and you don't want to pay car tax, then you simply must move to a state that allows exemption. It is unlawful to attempt to avoiding paying car tax by state otherwise.

If you buy a motor vehicle out-of-state and initially register it in your home state, then you should not pay sales tax at the point of purchase, but instead, when registering back home; otherwise you run the risk of paying car tax twice, depending on each state's car tax rules.

American Indians living on a reservation are exempt from car sales tax as long as the motor vehicle is taken possession of on the reservation; meaning American Indians may buy a car at the auto dealership, but the salesman must drive the vehicle to the reservation and document the delivery for the transaction to be exempt from car tax.

F&I Tools strives to provide accurate information. If you find errors or omissions, please contact us at our Keep F&I Tools Current page. We welcome anonymous contributions and work together to verify all information submitted.

Hawaii

4.166% "maximum
visible pass on rate"
-----------
4.712% for Honolulu
County (Oahu Island)

Visible Pass On

Excise Tax Law

Excise vs Sales Tax

PPX

Idaho

Brochure #14
Admin Rules

Car tax as listed.

Illinois

6.25% + local (+ 1.25%
more in Chicago) = total

Car Tax Guide

Private Party

Scroll down to "Vehicle Use Tax" and follow link to find rate for your location. Private party car tax differs from dealer sales.

Indiana