tax on buying a car from another state?

Question

What kind of tax do I have to pay and how much when buying a car from another state and registering it in the state I live????

Answer 1

Use tax but they will collect it when you register in this state.

Answer 2

You would be subject to a "use" tax by your resident state.

The tax would be whatever the sales tax rate in your resident state.

All states have a sales/use tax law in their state. The sales tax is complemented by the use tax in each state.

For example...

You live in MA but buy a car in tax-free NH and bring the car back into MA.

The MA resident would be subject to 5% sales tax if car was bought in MA so the use tax would also be 5%.

This tax would be paid in "good faith" when you bring the car back from NH to MA or when you file the MA tax return in that year.

This can be applied to any other state resident.

What most people don't realize is that "some" state agencies and stores "SHARE" information so if you think that you can buy a car in a tax-free state then drive it home "without" paying the tax, then you're mistaken.

Some dealerships will report the purchase to the appropriate state agencies who will then send you a bill!

Answer 3

It depends on how you take delivery of the car and who you buy the car from.

If you take delivery of the car in the state that you purchased the car, then you will owe sales tax in that state. Once you transfer the car to your state, depending on your state's Sales Tax Law, then you will owe any difference between your state and the state that you originally purchased the car. Also, your state may not give you full credit for the tax paid in the other state depending on the reciprocity agreement between those states. Any additional tax will be due when you register the car. Bring your purchase documents with you when you register the car to show that tax was paid to the other state.

If the car is delivered directly to you in your state, then use tax is due when you register the car.

Answer 4

The tax you pay is whatever is the pruchase price on the title when you change title ownership at your own state's DMV. You pay the tax to your own state at that time.

Answer 5

i offered a vehicle in NM and registered it in TX. merely had to pay Texas taxes alongside with getting an out-of-state inspection which became approximately like getting a classic inspection sticky label.

Answer 6

just in the state you are registering in. you will have to pay it when you go to register.