Car Sales Tax Calculator

Sales tax on a car purchase is based on the vehicle price minus any trade-in credit in most states. Rates vary widely: Montana, Oregon, New Hampshire, and Delaware charge no sales tax on vehicles, while states like California charge 7.25% plus local taxes. Some states cap the tax — for example, Virginia charges 4.15% on most vehicles. Many states also charge tax on the full purchase price regardless of trade-in value. The tax is typically collected at the DMV when you register the vehicle, not at the dealership.

In 42 states, the trade-in value of your old vehicle is subtracted from the purchase price before sales tax is calculated. So if you buy a $30,000 car and trade in a $10,000 car, you pay tax on $20,000. Notable exceptions include California and Hawaii, which tax the full price with no trade-in deduction. Some states also offer exemptions for electric vehicles, military personnel, and family transfers.