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you would only pay taxes on a difference

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Q: Do you have to pay the taxes in the car you trade in in Virginia?
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If you buy a car in Maryland and live in Virginia where do you pay taxes?

You pay Virginia taxes.


If you make an even trade car for a car do you pay taxes when you register it?

That depends on the state where the transfer occurred.


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If Trading car for car do you pay taxes?

Yes. It is quick and doesn't cost you as much as you might think, especially if you drive the right kind of car. Also, many states give you credit for your trade when figuring sales tax. For instance, let's say you are buying a $20,000 car, and have a $12,000 trade. The sales tax in my state is 6 percent on cars. You will pay taxes on $8,000 in most states, instead of $20,000, for a savings of $720.