Sales Tax

[Capo]

How much is the tax on new vehicles in the USA?

[nextfriday]

I'd say average is 8%. It varies state to state. Some 0, some 10%

[TheOther996s]

It varies by State, and usually there is an additional city/county sales tax as well.

To make it more confusing, there is often a 'Single Article' State tax that taxes a smaller percentage (than the 'normal' rate) on all of the purchase, and then a secondary tax on only a certain amount of the 'Single Article'.

For example, in Tennessee, there is a 7% tax on the entire amount, plus a 2.75% tax on the amount in excess of $1600 but less than or equal to $3200. Then, you add the 'Local Tax' only on the first $1600, which in my area is 2.25%.

So, on a $40,000 car, I would pay the 7% State Tax on the total amount ($2,800), plus the 2.75% on the amount between $1600 and $3200 ($44), plus 2.25% on the first $1600 ($36). Total sales tax = $2880

[caferacermike]

I recall in TX it's 6.25% of the "current value" or if you paid more than the listed value, the higher amount is taxed. For example if you buy a second hand bike and claim on your Bill of sale that you paid $1,000 for a "non running project" but that bike is currently valued at $7,000, then you pay the taxes on the $7k. If you buy an antique that has value and pay $4,000 for an old Honda, the "current value" might only be $400 so you pay on the $4k.

Too many of us were cheating the tax man so they got creative.

[philb]

Originally Posted by caferacermike

I recall in TX it's 6.25% of the "current value" or if you paid more than the listed value, the higher amount is taxed. For example if you buy a second hand bike and claim on your Bill of sale that you paid $1,000 for a "non running project" but that bike is currently valued at $7,000, then you pay the taxes on the $7k. If you buy an antique that has value and pay $4,000 for an old Honda, the "current value" might only be $400 so you pay on the $4k.

Too many of us were cheating the tax man so they got creative.

That's f**ked up.

PhilB

[SDRider]

Depends on the state and some states have laws regarding purchasing vehicles in another state and registering it in the state you live in so my answer to you is: It depends.