Find out exactly how much sales tax you'll pay when buying a car in any US state.
| Vehicle Price | $0 |
| Trade-In Deduction | −$0 |
| Rebate Deduction | −$0 |
| Taxable Amount | $0 |
| Sales Tax (0%) | $0 |
| Vehicle Price + Tax | $0 |
When you buy a car, you pay sales tax to the state where you register the vehicle — not necessarily where you bought it. Tax rates vary significantly by state, from 0% in five states to over 7% in others. In many states, local county and city taxes are added on top of the state rate, which is why your actual tax bill can be higher than the base state rate shown here.
Five states charge no sales tax on vehicle purchases: Alaska, Delaware, Montana, New Hampshire, and Oregon. If you live in one of these states, you pay $0 in state sales tax regardless of the vehicle price. Note that some cities in Alaska do levy local sales taxes, but there is no statewide rate.
In most states, your trade-in value is deducted from the taxable amount before sales tax is calculated. This is one of the most overlooked tax advantages of trading in at a dealership rather than selling privately. For example, if you buy a $35,000 car and trade in a vehicle worth $10,000, you pay tax on $25,000 instead of $35,000 — a meaningful savings at a 6% tax rate.
However, not all states offer this trade-in deduction. California, Hawaii, Kentucky, Maryland, Michigan, Montana, and Virginia do not deduct trade-in value from the taxable base. In these states, you pay tax on the full purchase price regardless of any trade-in.
Manufacturer rebates (cash back offers from the automaker) are treated differently by state. In most states, rebates do not reduce your taxable amount — you pay tax on the pre-rebate price. A handful of states do allow rebate deductions. This calculator applies deductions where available as a general estimate; check your state's DMV for exact rules.
Many states allow counties and cities to charge additional local sales tax. The rates shown in this calculator are state-level base rates. Your actual rate could be 0.5% to 3% higher depending on your county and city. For example, California's state rate is 7.25%, but Los Angeles County adds 2.25%, bringing the total to 9.5% for LA residents. Always check your local rate before finalizing your budget.
Sales tax is typically collected by the dealer at the time of purchase and remitted to the state. If you buy from a private seller, you generally pay sales tax when you go to register the vehicle at your state's DMV. Some states also charge use tax on vehicles brought in from another state.
Base state rates for vehicle purchases. Local rates vary by county and city.