Do you have to pay taxes on a car?

Answer 1

You definitely have to pay taxes on a car, and depending on where you live, it may be more or less taxes. For example, in Montana no sales tax but you have to pay property tax every year based on the value of the vehicle. Other places you pay sales tax AND property tax. You will pay.

Some states have personal property tax (sometimes called ad valorem tax) on property such as motor vehicles, boats, trailers, recreational vehicles and airplanes. The tax is assessed and paid every year for as long as you own the property. The tax is usually paid every time you purchase or renew an auto tag (license plate). The amount of the tax is based on the tax rate in that state, and the value of the vehicle - hence ad valorem. Not all states have this tax, and each state assesses the tax on different types of personal property. Contact your local taxing authority for more information.