Car Tax by State

Q: Are private sales exempt?

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.

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State	Car Tax Rate	Tools
Alabama	2% + county rate + city rate = total	By Address
Link Tip: 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 Community Details then click Economy to view sales tax rates.
Arizona	5.6% + county + city	PPX
Find location on map. Combine county and city retail percentages.		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	Tax Calculator Look-up Tool USPS Zip+4 Guidebook
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.		Tax Calculator Look-up Tool USPS Zip+4 Guidebook
California	7.25% + local	Look-up Tool Fee Calculator Dealer Handbook Dealer Tax Guide 86T
Select rate listed by city. Rate shown is combined total.

Directions:
Select state link after reviewing link tip to find total vehicle sales tax rates and source data.

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How is it calculated?

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

Can I pay less in another city?

No.

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

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.

State

Car Tax Rate

Tools

Colorado

2.9% + county + city + district = total

Reference Guide

Pamphlet 62

Select View Sales Rates and Taxes, then select city, and add percentages for total sales tax rate. (Exp) Denver: 8.31%

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

"Excise Tax" varies by weight & mpg

0% for electric vehicles

Tax Calculator

fuel economy .gov

D.C. Tax Facts

86T

Weight	20 mpg	21-25	26-30	31-35	40 mpg
3499 and ↓	8.1%	4.4%	3.1%	2.2%	1%
3500 - 4999	9.1%	5.4%	4.1%	3.2%	2%
5000 and ↑	10.1%	6.4%	5.1%	4.2%	3%

Florida

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

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

Scroll down to Sales Taxes when using Fee Calculator.

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State	Car Tax Rate	Tools
Georgia	6.6% "Title Ad Valorem Tax"	TAVT Calculator Booklet PPX
Note: Vehicles are exempt from the 1% Atlanta tax add.		TAVT Calculator Booklet PPX
Hawaii	4.1666% "maximum visible pass on rate" (Maui County) 4.4386% Hawaii County 4.7120% for Honolulu and Kauai County (Oahu Island)	Excise vs Sales Tax Visible Pass On Excise Tax Law PPX
Idaho	6%	Admin Rules
Car tax as listed.		Admin Rules
Illinois	6.25% + local (+ 1.25% more in Chicago) = total	Rate Finder Car Tax Guide Private Party
Scroll down to "Tax Rate Database" and follow link to find rate for your location. Private party car tax differs from dealer sales.		Rate Finder Car Tax Guide Private Party
Indiana	7%	Handbook Bulletin
Iowa	5% "One-Time Registration Fee"	Rules
Kansas	6.5% + local	Look-up Tool Guide
View publication 1700 under the most current effective date. Find total rate for city of inquiry.		Look-up Tool Guide
Kentucky	6% "Motor Vehicle Usage Tax"	Dealer Handbook
Louisiana	4.45% + local	Car Tax Manual Brochure
Click parish for city of inquiry, then find total rate for jurisdiction.		Car Tax Manual Brochure

Are private sales exempt?

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.

Do trade-ins count?

Almost all states levy car tax based on the agreed sales price minus a credit for the trade-in vehicle's agreed value.**

What if my trade is registered to someone else?

Trade-ins must be registered or titled in the purchaser's name in the state of trade to receive the tax credit.

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State	Car Tax Rate	Tools
Maine	5.5%	Reference Guide
Maryland	6% "Titling Tax"	Manual
Massachusetts	6.25%
Michigan	6%	Manual
Minnesota	6.5%	Calculator Instruction Booklet
Used vehicles 10 years or older under $3,000 are taxed at $10 flat.		Calculator Instruction Booklet
Mississippi	5%	F.A.Q.
Missouri	4.225% + local	Calculator Guide
Select most recent rate table. Sales rate listed is combined total.		Calculator Guide
Montana	0%	No car tax!
Nebraska	5.5% + city rate OR county rate (if no city tax) = total	Tax Estimator Rate Finder USPS Zip+4
Find location. Total rate listed is combined state and local rate in center list.		Tax Estimator Rate Finder USPS Zip+4
Nevada	6.85% + local	Breakdown PPX
View map. Locate county, view rate. Alphabetical city list below map.		Breakdown PPX
New Hampshire	0%	No car tax!
New Jersey	6.625%	Guide
New Mexico	4% "Motor Vehicle Excise"
New York	4% + local	Look-up Tool Guide
Click publication 718. View rate.		Look-up Tool Guide
North Carolina	3% "Highway Use"	Guide
North Dakota	5% "Motor Vehicle Excise"	Guide

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.

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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.

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State	Car Tax Rate	Tools
Ohio	5.75% + local	Look-up Tool
View map. Example zip code: 43210
Oklahoma	3.25% excise tax plus 1.25% sales tax = 4.5% total for new vehicles $20 on first $1,500 + 3.25% excise tax on balance + 1.25% sales tax on full price = total for used cars	Estimator Rules 86T
Oregon	Used Vehicles: 0% New Vehicles: 0.5% (One-half of 1 percent)	Pay Tax
Oregon residents buying new vehicles out-of-state must pay the car tax prior to DMV registration and titling back in OR.
Pennsylvania	6% 7% for Allegheny County 8% for City of Philadelphia	Fact Sheet
Rhode Island	7%
South Carolina	5% ($500 max)	Manual
South Dakota	4% "Motor Vehicle Excise"	Manual
Tennessee	7% + local rate on first $1600 + 2.75% single article tax on second $1600 (to $3200) = total	Calculator Look-up Tool Guide
Click Local Option Tax Rates. Rates listed for each city already include county rates. See sample calculation at bottom of pg14 of guide.		Calculator Look-up Tool Guide
Texas	6.25%	Valuation
Utah	4.85% + local	Rate Card USPS Zip+4 Pub 5 Pub 25
Click on current chart. Find total for your area. Car tax is exempt from the resort portion of the tax rate (listed RR).		Rate Card USPS Zip+4 Pub 5 Pub 25
Vermont	6%	Guide
Virginia	4.15% ($75 minimum)	86T
Washington	6.5% + local + 0.3% "motor vehicle sales / lease tax" = total	Look-up Tool
Select current rate sheet, find location, add 0.3% (.003) to the combined tax rate listed. (exp: Aberdeen = 8.93%)
West Virginia	6%
Wisconsin	5% + county	Look-up Tool USPS Zip+4 Guide
View chart listing combined totals in far right column.		Look-up Tool USPS Zip+4 Guide
Wyoming	4% + county	Tax Calculator
Click Master Tax Rate Chart effective (current), then find total tax rate listed under Total Sales / Use Tax Rate for county.
International Sales Tax Rates
Select "Indirect Tax" then locate country to find rate.

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 user contributions and work together to verify all information submitted.

Data Codes

*PPX = Private party sales exempt from taxation.

Arizona, Georgia, Hawaii, and Nevada do not levy tax on private party purchases.

**86T = No trade-in tax credit.

California, District of Columbia, Oklahoma, and Virginia do not allow credit for trade-in vehicle. Buyer is taxed on full sale price without credit for trade.

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