Buying Vehicle Out Of State Sales Tax Guide

: If the state where you bought the car has a lower tax rate than your home state, you will likely owe the difference to your local DMV upon registration.

: Most often, you pay the sales tax at your local DMV when you register the vehicle in your home state.

: Some states, such as California , may exempt out-of-state buyers from local sales tax if the vehicle is immediately transported and registered elsewhere. Use Tax On Out-of-State Purchases - CDTFA - CA.gov buying vehicle out of state sales tax

: For private party purchases, you almost always pay the full sales tax amount yourself at the DMV during registration. Understanding Reciprocity and Credits

: If you already paid tax to the state of purchase, your home state will typically apply that amount as a credit. : If the state where you bought the

: Many out-of-state dealers are authorized to collect your home state's sales tax directly and remit it on your behalf.

If you are required to pay sales tax in the state of purchase, most states have to prevent double taxation. Use Tax On Out-of-State Purchases - CDTFA - CA

Buying a vehicle out of state generally does not save you money on sales tax because you typically owe taxes based on where the vehicle is , not where it is purchased. Where You Pay