Sales Tax

Yes, used car purchases are subject to sales tax in California.

Related Information:

When the purchase is made privately, the tax is usually paid at the DMV at the time of registration. When purchasing from a dealer, the dealer usually handles the sales tax payment, but in either case, it comes out of your pocket.

By state law, only the seller/retailer has to pay the sales tax, not the consumer.

== ans ==

The above is not just wrong, but even sort of crazy.

There actually isn't a "sales tax", it is called an excise tax.

Cars are subject to this sales tax (regardless of what you wan to call it), just like anything else. Except it is collected by the MVC when you title/register it not the seller. UNLESS the seller is a registered dealer (who conventionally also handles all the title matters too), and then HE collects the tax to pay over to the MVC.

Excise tax is assessed upon each transfer of vehicle, boat or outboard motor ownership, unless specifically exempted by law.

• Excise tax is collected at the time of issuance of the new Oklahoma title.
• Oklahoma residents are subject to Oklahoma excise tax on vehicles purchased in another state.
• Nonresidents who purchase vehicles in Oklahoma are not assessed Oklahoma excise tax, provided they title and register the vehicle in their state of residence.

Most vehicles are assessed excise tax on the basis of their purchase price, provided that purchase price is within 20% of the average retail value for that specific model vehicle. If the purchase price provided is not within that 20% range, a taxable value within that range is established for excise tax assessment purposes.

• The purchase price may include a deduction for any dealer rebates or discounts.
• The purchase price may not include a deduction for any traded in vehicle.
• For new vehicles, a copy of the purchase agreement or bill of sale from the dealer is required.
• For used vehicles, either purchase price listed in assignment portion of conforming title certificate, a copy of a bill of sale or purchase agreement, or a notarized Declaration of Vehicle Purchase Price (Form 722-1 available for downloading from the Forms section of this site) is required.

Please note, in establishing an average retail value for the purpose of assessing vehicle excise tax, Oklahoma law makes no provision for adjusting the value of a vehicle due to that specific vehicle's condition - be that condition above or below average. An average value for all such model vehicles is utilized.

Standard vehicle excise tax is assessed as follows:

• New Vehicle: 3.25% of the purchase price (or taxable value, if different)
• Used Vehicle: $20.00 on the 1st $1500.00 of value + 3.25% of the remainder

Excise tax on boats and outboard motors is based on the manufacturer's original retail selling price of the unit. Boat/outboard motor excise tax is assessed as follows:

• New Boat/motor: 3.25% of the manufacturer's original retail selling price
• Used Boat/motor: For each subsequent year of age, the taxable value is decreased 35%

Excise tax on manufactured homes is based on the actual purchase price/current value of the home and is assessed in the following manner:

• New Manufactured Home: 3.25% of ½ the actual purchase price/current value
• Used Manufactured Home: 3.25% of 65% of ½ the actual purchase price/current value

Excise tax on new and used all terrain vehicles, utility vehicles, and off road motorcycles is 4.5% of the actual purchase price with a minimum of $5.00.

To my knowledge the only taxes due on the purchase of a used car are sales taxes. Certain states may impose other fees, or taxes, but all would be included in the final price of the car. If you finance the purchase, your payments are for the total of the car (including any taxes, fees, and interest) divided by the number of months expressed in the terms of your loan contract. If you pay cash for the car (this includes writing a check or using a certified check), the final cash price should also include any taxes due. Either way, you pay the taxes only one time.

Additionally, if you buy a car from an individual (not a used car business or dealership), sometimes the taxes aren't collected until you transfer the title of the car. This is because most individuals aren't expected to file sales tax on a regular basis. Instead, the city or county collects the tax when you transfer title and pays it directly to the state for you.

State Maximum

Sales Tax (%)1 Average Registry

Fees Charged Trade-In

Sales Tax2 Are Incentives

Taxed?3 Doc

Fee4 Alabama 12.00 $445 Y Y No limit Alaska 7.50 $84 Y N No limit Arizona 10.73 $500 Y Y No limit Arkansas 11.00 $33 Y Y No limit California 8.75 $232 N Y $45 Colorado 9.90 $510 Y Y No limit Connecticut 6.00 $109 Y Y No limit Delaware 0.00 $827 Y Y No limit District of Columbia 5.75 $100 N Y No limit Florida 7.50 $182 Y Y No limit Georgia 8.00 $38 Y Y No limit Hawaii 4.00 $108 N Y No limit Idaho 8.00 $92 Y Y No limit Illinois 9.25 $143 Y Y $55.39 Indiana 6.00 $41 Y Y No limit Iowa 7.00 $332 Y N No limit Kansas 8.30 $39 Y Y No limit Kentucky 6.00 $21 N Y No limit Louisiana 11.00 $47 Y N $50 Maine 5.00 $48 Y Y No limit Maryland 6.00 $106 Y Y $100 Massachusetts 5.00 $80 Y Y No limit Michigan 6.00 $216 N N $170 Minnesota 7.50 $365 Y N $50 Mississippi 7.25 $25 Y Y No limit Missouri 9.10 $63 Y N No Limit Montana 0.00 $501 N N No limit Nebraska 7.00 $85 Y N No limit Nevada 7.75 $53 Y Y No limit New Hampshire 0.00 $60 Y N No limit New Jersey 9.00 $95 Y Y No limit New Mexico 8.44 $49 Y Y No limit New York 9.00 $78 Y Y $45 North Carolina 7.50 $55 Y N No limit North Dakota 7.50 $70 Y Y No limit Ohio 7.50 $48 Y Y $250 Oklahoma 10.85 $102 Y N No limit Oregon 0.00 $63 Y N $50 Pennsylvania 7.00 $55 Y N No limit Rhode Island 7.00 $61 Y N No limit South Carolina 7.00 $29 Y N No limit South Dakota 6.00 $48 Y Y No limit Tennessee 10.25 $70 Y Y No limit Texas 8.25 $85 Y N $50 Utah 8.10 $189 Y N No limit Vermont 7.00 $53 Y N No limit Virginia 5.00 $31 N Y No limit Washington 8.90 $57 Y Y $35 West Virginia 6.00 $30 Y Y No limit Wisconsin 5.60 $70 Y Y No limit Wyoming 6.00 $539 Y N No limit

(Fees, prices and information current as of November 2006.)