Buying — A Car Out Of State Sales Tax

The process for paying the tax depends heavily on whether you are buying from a professional dealership or a private seller.

: Many dealerships are equipped to handle out-of-state sales. They may collect your home state's sales tax at the point of sale and remit it to your state's tax department on your behalf. If the dealer’s state tax is lower than yours, you may still owe the difference at your local DMV. buying a car out of state sales tax

When you buy a car in a state other than where you live, sales tax is almost always determined by your —specifically the state where you register the vehicle. While it may be tempting to shop in a state with no sales tax, you will generally still owe your local rate when you go to get your plates. Where You Pay the Tax The process for paying the tax depends heavily

: If you buy from an individual, they typically won't collect any tax. Instead, you will pay the full sales tax amount to your local DMV or tag office during the registration process. How Reciprocity Works If the dealer’s state tax is lower than