If you want to donate your car, do you still have to pay the taxes on your car?

Question

My mom wants to donate our car but needs to know if you have to still pay the car taxes after you donate the car. We just got the taxes this month so we don't know whether we still have to pay the taxes.

Answer 1

If the tax bill is dated before you got rid of the car, then yes, you would need to pay the tax bill, although you can probably get it pro-rated for the period that you owned it before getting rid of it.

Answer 2

If you're refering to personal property taxes on the vehicle, that will depend upon state law.

Here in MO, the owner of record on Jan 1st pays the tax for the year. Even if you sell it on Jan 2nd you'll be billed for the taxes as if you owned it for the full year. On balance, if you buy a car on Jan 2nd, you won't pay PP taxes on it this year. MO does not provide for any proration of PP taxes though other states may well.

Answer 3

I imagine the taxes are not for the car, but are really for the registration/tag. As long as she donates it before the tag expires, then no, she does not have to pay the taxes.

Just FYI, donating a car does not give you a tax break equal to the value of the car (as most places tend to make you believe is what you are getting).

If the car is worth $4000, and she is in the 28% tax bracket, then she is only saving $1120 on her taxes. She'd be better off selling it unless she really loves the charity and is truly doing it as a donation and not a tax write off.

Answer 4

Normally the car taxes are paid when you register your car to renew the plates. If you aren't going to have the car by the time the current plates expire, then you wouldn't have to do the renewal and pay the tax.

Answer 5

It depends on whether your taxes are paid in advance or arrears. If the taxes are in arrears, you still owe them.

Answer 6

no