Can I Buy a Car Out of State to Save on Tax?

[Kenji4861]

I am thinking about buying a car.

The tax in my area is 8.25%. Outside of my county has cheaper tax (7-8%) and I don't mind driving to Nevada to save even more on tax.

What is the deal with tax in that case? Do they still charge tax of where I live? Thanks for any information.

 

[EvilPaper]

You usually pay taxes for the county that you live in, regardless of where you purchase it.

I should add, that probably varies by State -- but I believe its more common than not.

Sorry

 

[Mill]

Originally posted by: EvilPaper
You usually pay taxes for the county that you live in, regardless of where you purchase it.

I'm pretty sure he's talking about sales tax and not ad-valorem taxes. :roll:

 

[EvilPaper]

I'm pretty sure he's talking about sales tax and not ad-valorem taxes.

I was talking about sales tax -- when you purchase a car, at least in the state of Ohio (and at least MI and WI), they charge you the sales tax of the county you live in -- not where you purchase it.

Example:

Say I live in Delaware county where sales tax is 7.75%. If I buy a car in Franklin county, where sales tax is 6.75%, I pay 7.75%, because I live in Delaware county.

 

[Freejack2]

Around here when you register the vehicle you pay the tax then. So even if you buy it out of state for say $1000 you still have to cough up the local sales tax to the dmv. So if it's 8% you need to pay the dmv the $80 sales tax.

 

[DrPizza]

I believe it's added on when you register the car in NY, if you haven't already payed it.

 

[Dacalo]

Originally posted by: Freejack2
Around here when you register the vehicle you pay the tax then. So even if you buy it out of state for say $1000 you still have to cough up the local sales tax to the dmv. So if it's 8% you need to pay the dmv the $80 sales tax.

I believe this is correct.

I live in Northern Cali and I was thinking of driving to Oregon but I found out that you have to pay tax when you register

 

[cchen]

Additionally, if you buy the car from a retail dealer out of state, you'll have to pay that state's sales tax as well as your own state's

 

[Kenji4861]

Thanks guys, does the same apply for different counties within the same state? I can find 7.25% taxes about a few hours drive away.

 

[boyRacer]

Originally posted by: cchen
Additionally, if you buy the car from a retail dealer out of state, you'll have to pay that state's sales tax as well as your own state's

oh really? wow that sucks... no point in doing that then...

 

[Mill]

Originally posted by: bR

Originally posted by: cchen
Additionally, if you buy the car from a retail dealer out of state, you'll have to pay that state's sales tax as well as your own state's

oh really? wow that sucks... no point in doing that then...

In California you get a credit though. I can't believe you have to pay sales tax based on where you live though. I know it is like that for some states, but Cali? Well, I guess the use tax is based on your residence county, but you can get credit for tax you paid out of state.

Basically:

How much will I have to pay?

The fees due depend on a variety of factors and are determined by your application. In addition to the usual registration fees, you may have to pay the following:

Registration Fee $31
Vehicle License Fee (VLF)-Based on the value of your vehicle.
Permanent Trailer Identification (PTI) Fee $20. All trailers, except trailer coaches and park trailers are under the PTI program. PTI trailers are not subject to registration fees, CHP fees, county fees, and vehicle license fees. PTI trailers pay a $20 original fee and then a $10 service fee every ten years for renewal.
Weight Fee-$8 to $539. Assessed on pickups with an unladen weight of 8,000 lbs. or less, and commercial motor vehicles operating under 10,001 lbs. This fee is based on the empty or unladen weight.
CVRA Fee
Use Tax-This tax is similar to sales tax. It is collected at the same rate as your county of residence. It is due on all vehicles purchased in California and on those brought into this state within 90 days of purchase. Any sales taxes paid out-of-state will be considered when computing the use tax due this state. This fee is due for ownership transfer of recently purchased vehicles.
County Fees-County fees range from $1 to $8. The fees support various progams such as air quality, auto theft deterrance, emergency call box, and abandoned vehicles.
Penalties-When fees due the state of California for a nonresident vehicle are not paid within 20 days of the date they became due, they are subject to a 40% penalty.

 

[Eli]

Originally posted by: Kenji4861
Thanks guys, does the same apply for different counties within the same state? I can find 7.25% taxes about a few hours drive away.

Of course.

We have no sales tax here in Oregon.

You can't buy a car here, take it to Washington and pay no sales tax.

Conversely, you CAN buy a car in Washington, bring it here and pay no sales tax.

 

[cchen]

If you buy from a private party though, you only pay your own state's tax I think. Here in MD in all counties its the same 5% state sales tax

 

[Hayabusa Rider]

Originally posted by: Eli

Originally posted by: Kenji4861
Thanks guys, does the same apply for different counties within the same state? I can find 7.25% taxes about a few hours drive away.

Of course.

We have no sales tax here in Oregon.

You can't buy a car here, take it to Washington and pay no sales tax.

Conversely, you CAN buy a car in Washington, bring it here and pay no sales tax.

After you pay the WA tax

 

[Eli]

Originally posted by: WinstonSmith

Originally posted by: Eli

Originally posted by: Kenji4861
Thanks guys, does the same apply for different counties within the same state? I can find 7.25% taxes about a few hours drive away.

Of course.

We have no sales tax here in Oregon.

You can't buy a car here, take it to Washington and pay no sales tax.

Conversely, you CAN buy a car in Washington, bring it here and pay no sales tax.

After you pay the WA tax

IIRC, I don't think so. All you should have to do is show that you're from Oregon, and you're in the clear.

You can do this with any product, AFAIK. If you have an Oregon ID, you don't have to pay sales tax in WA. Not sure if it's like this in all states.

 

[Mill]

Originally posted by: Eli

Originally posted by: WinstonSmith

Originally posted by: Eli

Originally posted by: Kenji4861
Thanks guys, does the same apply for different counties within the same state? I can find 7.25% taxes about a few hours drive away.

Of course.

We have no sales tax here in Oregon.

You can't buy a car here, take it to Washington and pay no sales tax.

Conversely, you CAN buy a car in Washington, bring it here and pay no sales tax.

After you pay the WA tax

IIRC, I don't think so. All you should have to do is show that you're from Oregon, and you're in the clear.

You can do this with any product, AFAIK. If you have an Oregon ID, you don't have to pay sales tax in WA. Not sure if it's like this in all states.

I wouldn't think so Eli. You'd have to pay any taxes that WA levies.

 

[PowerEngineer]

Originally posted by: Mill

Originally posted by: Eli

Originally posted by: WinstonSmith

Originally posted by: Eli

Originally posted by: Kenji4861
Thanks guys, does the same apply for different counties within the same state? I can find 7.25% taxes about a few hours drive away.

Of course.

We have no sales tax here in Oregon.

You can't buy a car here, take it to Washington and pay no sales tax.

Conversely, you CAN buy a car in Washington, bring it here and pay no sales tax.

After you pay the WA tax

IIRC, I don't think so. All you should have to do is show that you're from Oregon, and you're in the clear.

You can do this with any product, AFAIK. If you have an Oregon ID, you don't have to pay sales tax in WA. Not sure if it's like this in all states.

I wouldn't think so Eli. You'd have to pay any taxes that WA levies.

Eli's right. If you can show a Washington retailer a valid Oregon driver's license, they will not charge you Washington sales tax on cars or anything else. The cashiers at big stores are always asking "Washington resident?", to which I have to sigh "yes" , and then pay the tax!

It's also true that Washington will charge you the sales tax that isn't collected by another state when you register the car in Washington (i.e. you do get credit for any sales tax you paid in another state when purchasing the car). If you move to Washington, your cars had better have been yours for more than six months (?) or they will charge sales tax when the registration is changed.

 

[Mill]

Originally posted by: PowerEngineer

Originally posted by: Mill

Originally posted by: Eli

Originally posted by: WinstonSmith

Originally posted by: Eli

Originally posted by: Kenji4861
Thanks guys, does the same apply for different counties within the same state? I can find 7.25% taxes about a few hours drive away.

Of course.

We have no sales tax here in Oregon.

You can't buy a car here, take it to Washington and pay no sales tax.

Conversely, you CAN buy a car in Washington, bring it here and pay no sales tax.

After you pay the WA tax

IIRC, I don't think so. All you should have to do is show that you're from Oregon, and you're in the clear.

You can do this with any product, AFAIK. If you have an Oregon ID, you don't have to pay sales tax in WA. Not sure if it's like this in all states.

I wouldn't think so Eli. You'd have to pay any taxes that WA levies.

Eli's right. If you can show a Washington retailer a valid Oregon driver's license, they will not charge you Washington sales tax on cars or anything else. The cashiers at big stores are always asking "Washington resident?", to which I have to sigh "yes" , and then pay the tax!

It's also true that Washington will charge you the sales tax that isn't collected by another state when you register the car in Washington (i.e. you do get credit for any sales tax you paid in another state when purchasing the car). If you move to Washington, your cars had better have been yours for more than six months (?) or they will charge sales tax when the registration is changed.

That's just sickening. I can't believe they will exempt you from the tax though. That baffles my mind.

 

[V00DOO]

I wish you could save on sales tax when buying a car out of state or else I would save 8.25% buying from Portland, OR.

 

[Dznuts007]

You pay the sales tax of the county you live in...

 

[Raincity]

I remember it being that way in WA OR when I grew up there. I am surprised it has not changed since then. In the past here in Vegas, You where able to purchase a vehicle in Utah to beat the sales tax but the NV DMV started the sales tax levy within the last 10 years.

 

[Nebor]

Originally posted by: Dznuts007
You pay the sales tax of the county you live in...

That's right! I had a relative in town from Mississippi, and they called some number in MS to get the tax rate there. Apparently cars are much cheaper here in Texas than where he's from though. Go figure.

 

[Mill]

Originally posted by: Nebor

Originally posted by: Dznuts007
You pay the sales tax of the county you live in...

That's right! I had a relative in town from Mississippi, and they called some number in MS to get the tax rate there. Apparently cars are much cheaper here in Texas than where he's from though. Go figure.

But here they don't do that. I find it odd that a state or county would want to give up perfectly good sales tax like that.

 

[Nebor]

Originally posted by: Mill

Originally posted by: Nebor

Originally posted by: Dznuts007
You pay the sales tax of the county you live in...

That's right! I had a relative in town from Mississippi, and they called some number in MS to get the tax rate there. Apparently cars are much cheaper here in Texas than where he's from though. Go figure.

But here they don't do that. I find it odd that a state or county would want to give up perfectly good sales tax like that.

I thought it was wierd too. I guess it varies from state to state? Why not do it for toothbrushes and enemas as well?

 

[Mill]

Originally posted by: Nebor

Originally posted by: Mill

Originally posted by: Nebor

Originally posted by: Dznuts007
You pay the sales tax of the county you live in...

That's right! I had a relative in town from Mississippi, and they called some number in MS to get the tax rate there. Apparently cars are much cheaper here in Texas than where he's from though. Go figure.

But here they don't do that. I find it odd that a state or county would want to give up perfectly good sales tax like that.

I thought it was wierd too. I guess it varies from state to state? Why not do it for toothbrushes and enemas as well?

Evidently the revenue wouldn't be as much.