Here’s the Scoop on Sales Tax When You Sell Your Car
Each state has rules about sales tax when you sell your car. In most states, sales tax applies to any motor vehicle purchase – but the responsibility for paying that tax usually falls on the person who buys the car, not the person who sells the car.
When you sell your car to GiveMeTheVIN, we handle the necessary paperwork related to sales tax for you, which is just one more reason many people find it faster and easier to sell their car to us rather than navigate complex state tax requirements on their own.
Below are the common sales tax rates for vehicle purchases in all 50 states and the District of Columbia. This information is provided for general understanding, but tax rules and rates can change, so always verify current requirements with your state’s official tax or motor vehicle agency.
What is the Sales Tax in Your State When You Sell Your Car?
In the United States, most states impose a sales tax or use tax on the purchase of a motor vehicle, including used cars. According to tax data, sales tax rates can range from 0% in some states to over seven percent in others, and local jurisdictions can add additional taxes on top of the state rate. States that do not have a statewide sales tax include Alaska, Delaware, Montana, New Hampshire, and Oregon, though even in those cases local assessments or use taxes may apply. These rates are typically applied to the purchase price of the vehicle when the buyer registers the car with the state’s Department of Motor Vehicles or equivalent agency. As always, this is general information only, and you should confirm current sales tax rules with your state’s tax authority.
Below is a breakdown of sales tax as it commonly applies to used car purchases in each state. These reflect statewide base rates but do not necessarily include additional local taxes that may vary by county or city.
Alabama – Sales tax on a vehicle purchase is approximately 2.00% of the car’s purchase price, but local taxes may apply.
Alaska – No statewide sales tax, but local sales taxes may be imposed, so check with your local tax authority.
Arizona – State-level sales tax is around 5.60%, with additional local rates possible.
Arkansas – Sales tax rates vary, with a state base around 6.50%.
California – The statewide rate is 7.25% on vehicle purchases, though local districts can increase the total tax owed.
Colorado – Sales tax applies and generally starts around 2.90%, with local rates added.
Connecticut – Used vehicle purchases are subject to sales tax; check the Connecticut Department of Revenue Services for current rates.
Delaware – Delaware does not impose a sales tax on vehicle purchases.
Florida – Florida generally imposes a 6% sales tax on vehicle purchases when you register the car.
Georgia – State sales tax around 4%, with local additions.
Hawaii – Sales tax applies to vehicle purchases; confirm with the Hawaii Department of Taxation.
Idaho – Vehicle sales are subject to sales tax; contact Idaho Tax Commission for current rates.
Illinois – Approximately 7.25% state sales tax applies to vehicle purchases.
Indiana – Sales tax of about 7% on motor vehicle purchases.
Iowa – Sales tax applies; contact the Iowa Department of Revenue.
Kansas – Sales tax on vehicle purchases can be around 7.50%.
Kentucky – Sales tax applies; check with Kentucky Department of Revenue.
Louisiana – Sales tax applies, often around 5% plus local taxes.
Maine – Sales tax applies to vehicle purchases; verify with Maine Revenue Services.
Maryland – Sales tax applies, typically around 6%.
Massachusetts – Sales tax applies; consult the Massachusetts Department of Revenue.
Michigan – Sales tax applies to vehicle purchases; confirm with Michigan Department of Treasury.
Minnesota – Minnesota imposes a sales tax around 6.875% on vehicle purchases.
Mississippi – Sales tax of roughly 7%, plus local taxes.
Missouri – Sales tax applies; contact Missouri Department of Revenue.
Montana – No statewide sales tax; local taxes or use taxes may apply.
Nebraska – Sales tax on vehicle purchases; check with Nebraska Department of Revenue.
Nevada – Sales tax on vehicles can be up to 8.25%.
New Hampshire – No statewide sales tax; however, some regions may require a use tax when registering.
New Jersey – Sales tax around 6.625% on vehicle purchases.
New Mexico – Sales tax applies; confirm with New Mexico Taxation & Revenue Department.
New York – Sales tax applies on vehicle purchases; counties may charge additional tax.
North Carolina – Sales tax applies; contact North Carolina Department of Revenue.
North Dakota – Sales tax applies; verify with North Dakota Office of State Tax Commissioner.
Ohio – Sales tax around 5.75% on vehicle purchases, plus local taxes.
Oklahoma – Sales tax applies; check with Oklahoma Tax Commission.
Oregon – No statewide sales tax; local jurisdictions may have use taxes.
Pennsylvania – Sales tax applies; consult Pennsylvania Department of Revenue.
Rhode Island – Sales tax around 7% on vehicle purchases.
South Carolina – Sales tax applies on vehicle purchases; check South Carolina Department of Revenue.
South Dakota – Sales tax applies; verify with South Dakota Department of Revenue.
Tennessee – Sales tax around 7% on vehicle purchases.
Texas – Sales tax applies; check Texas Comptroller’s Office.
Utah – Sales tax applies; verify with Utah State Tax Commission.
Vermont – Sales tax applies; contact Vermont Department of Taxes.
Virginia – Sales tax around 4.15% on vehicle purchases.
Washington – Sales tax applies; use Washington Department of Revenue resources.
West Virginia – Sales tax applies; consult West Virginia State Tax Department.
Wisconsin – Sales tax applies; check Wisconsin Department of Revenue.
Wyoming – Sales tax applies; contact Wyoming Department of Revenue.
Because sales tax rates and rules can change, and because local city or county taxes may also apply, always verify current used car tax requirements with your state’s official tax or motor vehicle agency before completing a sale.
Sales Tax When You Sell Your Car to a Dealership
When you sell your car to a dealership, the used car buyer typically handles the sales tax as part of the titling and registration process. A dealership will collect the tax due from the ultimate buyer of the vehicle or remit it on behalf of the purchaser at the time of sale. However, dealerships often protect their own profit margins by adjusting trade-in values — and because they factor in expected tax costs and other fees when calculating trade-in offers, used car sellers may receive a lower net trade-in credit than expected. Although the buyer is responsible for paying the sales tax at purchase, the dealership’s overall pricing strategy can influence what you receive on a trade-in.
Sales Tax When You Sell Your Car to a Private Buyer
When selling your car privately, the buyer is generally responsible for paying any applicable sales tax when they register the vehicle with the state. This means the buyer must declare the purchase price and remit the required tax to the state at the time of titling. Some private buyers may ask to list a lower sales price on a bill of sale to reduce sales tax, but knowingly reporting a false purchase price is against the law in most states and can result in penalties or legal trouble. Always consult your state’s tax authority for proper reporting procedures, and ensure that sales tax is handled correctly at the time of registration to avoid complications.
Sales Tax When You Sell Your Car to GiveMeTheVIN
When you sell your car to GiveMeTheVIN, the process is streamlined and transparent. As the used car seller, you do not have to worry about sales tax logistics. GiveMeTheVIN handles the necessary tax-related paperwork as part of completing the sale and ensuring the transfer of ownership is processed according to your state’s requirements. This is one of the reasons many used car sellers find it faster and easier to sell their car to GiveMeTheVIN rather than navigating complex tax filings on their own.
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