When buying a car out of state, what tax to you pay. Or do you pay any?

[V6UnderPressure]

I am aware that on places such as ebay, that if you buy in your state that you have to pay YOUR states sales tax on the item. BUt if you buy out of it, you do not. I am currently looking at a few cars all out of state and wondered what tax, if any applies to the purchase price of the car??? Thanks all!

Scott

 

[Joe231]

I could be wrong, but I believe when someone buys a car out of state taxes does not apply. When I bought my GN from Kirban, I did not pay taxes on it. However, I did pay taxes on the GN when I registered it and applied for license plates. I hope this helps.

 

[pacecarta]

if you dont reside in the state the vehicle is sold in you dont pay tax to that state , you have to pay the sales tax (for yor state ) when you present the old title at your DMV (MVC) for a new title in your name
you will need to have the price filled out on title you present and the tax will be based on that figure

if you purchase a vehicle in another state and you intend to drive it home you can usually apply within that state for a temporary non residedent 30 day tag (other states may allow more) that will allow you to drive the vehicle home , it usually a small fee , in NJ its 5.00 ,
this applies to goods other than cars as well , you are supposed to report any out of state purchases to your state when you file your state taxes and pay tax on that .

 

[Rogue Leader]

YEah I had my Trans Am shipped here from Texas and paid the dealer no taxes at all. Then when I went to the dmv I got banged for $850 in taxes to register it. Worth it tho for the deal I got on the car!

 

[AsphaltAnihil8r]

you WILL pay IL tax,,so lie and say it was for $2000..

 

[V6UnderPressure]

Originally posted by AsphaltAnihil8r
you WILL pay IL tax,,so lie and say it was for $2000..

Well that is what I had planned to do. However, this car is not for cash. IT will be a dealer with my trade in and on payments. So how do I go about that? OR am I doomed. If I have to pay such a large sum in taxes, I'd rather have it financed as my down enough is going to kill me.

Scott

 

[GN One Day...]

Bought my SC in IN and brought it home to MS. Would have had to pay sales tax when I got my tag, but didn't have to since it was over 10 years old.

 

[azgn]

it all depends on your local state laws.....in AZ, we pay no taxes on transactions between individuals.......only the dealers collect sales tax (although we do have a "use" tax that can apply to new vehicles bought out of state and some cities impose a similar tax)

 

[dhauser]

What would've been cool is if you'd sold your old car prior to buying this one (not always feasible I know). In many (if not most) states, you can use the sales price of the old car to offset the taxable sales price of the new car, and significantly reduce your tax bite. That's what I do when buying and selling my own personal cars. It's way cool!