I have a question for you guys.... I plan on purchasing a used car out of state. The problem is I have heard that when i buy a car out of state and pay that states tax, I have to also pay my own when i come back....

Here is something else i heard.... If, for example, I buy a car in Ohio, and lets say the tax is 5%... And I drive it back to NY, and the tax there is 8.25%. I was told that i would have to pay the 5 percent, and then when i come back to NY, i would have the pay the difference in the tax which would be 3.25%. That was some example tax rates, i dont know the real one.

Does anyone know anything about either of these? Or can anyone clarify the process of buying out of state? Thanks.

The car is probably a year 2000.

 

I bought my car in NJ and moved to CA less than 90 days later, because of that when I tried to register the car I had to pay the difference in tax rates.

Now, if all you want to do is buy a car in a different state and register it in the state that you live in you will only pay tax in the state you live in at the regular rate. At least that was the case few years ago when my sister bought a car from NY and registered it in NJ.

 

here is some more info, i plan on driving to another state, and driving the car back the same day....

Lets call my state A, and the other State B.

So when you say "you will only pay tax in the state you live in" does that mean I dont pay any tax at the state B? Just my State A?

thanks for any replies.

 

Yes, you'll only pay tax in your state.
The way you pay tax on a used car is at the DMV during registration, so I don't see how you could possibly pay tax in the other state.

 

Also, you might want to check out whether or not you have to pay county and/or city tax. In my case, I have to pay IL Use tax of $1250 AND a 6% Chicago City Tax. I am also going to assume I have to pay Cook County Tax.

 

well damn, I hope you have money left to eat..... Those are a lot of taxes... I doubt my city has a tax... But I will check. Thanks.

 

I really dont know too much about buying cars out of state, we usually bought our cars in-state and the dealer took care of everything. Thanks for this info.

 

I have bought a car out of state before. I did not pay any sales tax in the state I bought it in because I did not register it there. I paid taxes when I registered the car in the state I lived in at the time. When you buy in your state, the dealer does most of the paperwork for tittling the car but you have to do the registration yourself in my state.

 

Does anyone know if we have to pay any taxes for buying a car from ebay or a private seller? thanks.

 

I live im Michigan and bought my car in Chicago. The Michigan sec. of state and dealer told me that I do not pay the tax in IL (8%). I pay the tax in MI (6%) and they give the tax money to IL. So I saved 2% in tax money....legaly.

 

I brought my first max out of state. I brought the car in New York and live in New Jersey. I only paid Jersey sales tax. The dealer took care of all of the paper work and sent me the tags and registration via UPS. I didn't pay any extra fees either.

 

If you buy it from a dealer, then the dealer will collect sales tax for the state in which you reside. They are also responsible for registering the car in the state in which it will reside.

If you buy it from a private sale, you have to pay the sales tax when you register it in your state.

You should not have to pay tax in their state unless you are registering the car in their state.

Some states require you to pay the state sales tax in order to get a temporary tag. In this case, you would pay the sales tax, but the car would still be registered in your state. The difference in tax, if any, would be owed to the state that you live in upon registration.

Here's the killer part... if you buy the car from a state that has 6% tax and that state requires payment of taxes, but you register the car in a state that has only a 4.5% tax, you stand to lose the 1.5% additional tax. Some states allow you to send a letter once the car is registered in your home state which allows you to receive the 1.5% back, but not all states allow this.

You best bet is to contact your local DMV/Tag office and ask them how to go about your purchase.

 

Contact the DMV/Sec. of state for both states. I only had to pay the sales tax in my home state which has a lower sales tax then where I purchased the car. Each state will differ most...likely knowone in here can answer your question exactly but thank you for asking us.

 

I bought my car new in Baltimore, but I live in FL. I wound up paying taxes only in FL when it was registered.

 

I sell cars in New Jersey and have sold a few cars to people living in PA, DE and NY. Our procedure is to collect the sales tax from the state in which they reside. I have them fill out a special IRS form (ST-10) which basically says they are exempt from NJ sales tax because they are paying the tax to another state. Not sure exactly what situation you are, but it should be similar to this. Is this a private or dealer sale??

 

What if you buy a car in your state but in a suburb with cheaper tax rates? Will you have to pay the difference if you live in a different area in the same state with a higher tax rate?

 

You dont pay the seller tax but when you go register your car, you will pay tax

 

I've run into this problem several times with people purchasing a car who live in Philadelphia. Sales tax in Philly is 7% while outside of the city it's 6%. They pay the 7%, not the 6%.

 

Oh thanks for the info.