Purchasing a car out of state?

Question

My hometown is Vermont but I want to buy a car in MA or NY what do I pay for sales tax? Also, if I buy from an individual (not a dealer) how does tax work there? do I just pay the individual the asking price then when I register the car I pay tax? Thanks

Answer 1

If you buy a used car out of state, then you have to pay the sales tax when you register it in your state. If you buy a new car out of state, then you'll pay the sales tax and when you register it in your state then you'll pay the difference in the tax from the state where you bought it and your home states taxes. For example, if you bought it in a state where the sales tax is 5% and your state is 7% then you would have to pay the 2% difference when you register it.

That's the way it would work in KY. I assume it would be close to the same in VT.