Car Sales Tax Rates by State (2026 Directory)
Official state base motor vehicle tax rates, average local discretionary surtaxes, and trade-in credit eligibility verified against state Department of Revenue rate schedules.
State Base Rates: Baseline motor vehicle sales tax rates range from 0.00% in the five NOMAD states (Alaska, Delaware, Montana, New Hampshire, and Oregon) up to 7.25% in California.
Local Surtaxes: In 38 states, cities and counties add discretionary sales taxes that push total effective vehicle tax rates to 8.00% to 10.75% in major metropolitan areas.
Trade-In Deductions: Exactly 43 states permit trade-in sales tax credits where tax is paid only on the net difference. Only four states (California, Delaware, Hawaii, Virginia) plus the District of Columbia deny trade-in tax credits.
Where Tax Is Paid: Vehicle sales tax is governed strictly by your home registration address, never the dealership physical location.
How Vehicle Sales Tax Is Assessed Across States
Motor vehicle sales tax is determined by where you register the vehicle, not where the dealership is located. When you purchase a vehicle from an out-of-state dealer, the selling dealer typically collects sales tax at your home state's rate or provides temporary transit tags so you can remit tax directly at your local DMV bureau.
The table below details state base rates, average local discretionary taxes, trade-in credit rules, and statutory revenue codes for 2026. For dedicated calculation engines with line-by-line fee breakdowns, select any linked state below or use our Out-the-Door Price Calculator.
| State | Base Tax Rate | Avg Local Surtax | Combined Rate | Trade-In Tax Credit? | Statutory Citation / Rule |
|---|---|---|---|---|---|
| Alabama | 2.00% | 2.00% | 4.00% | Yes | Ala. Code § 40-23-2(4) |
| Alaska | 0.00% | 1.82% | 1.82% | Yes | No state tax; local borough taxes apply |
| Arizona | 5.60% | 2.80% | 8.40% | Yes | A.R.S. § 42-5061 (TPT). Private party exempt. |
| Arkansas | 6.50% | 2.93% | 9.43% | Yes | Ark. Code Ann. § 26-52-510 |
| California | 7.25% | 1.60% | 8.85% | No | Cal. Rev. & Tax. Code § 6012 (No trade credit; $85 doc fee cap under Cal. Veh. Code § 4456.5 is taxable) |
| Colorado | 2.90% | 4.87% | 7.77% | Yes | Colo. Rev. Stat. § 39-26-104 |
| Connecticut | 6.35% | 0.00% | 6.35% | Yes | Conn. Gen. Stat. § 12-408 (7.75% for luxury cars over $50k) |
| Delaware | 4.25% | 0.00% | 4.25% | No | 30 Del. C. § 3002 (Document fee in lieu of sales tax) |
| District of Columbia | 6.00% | 0.00% | 6.00% | No | D.C. Code § 50-2201.03 (Graduated excise tax 1% to 10.1%) |
| Florida | 6.00% | 1.02% | 7.02% | Yes | Fla. Stat. § 212.054 (County surtax capped on first $5,000) |
| Georgia | 7.00% | 0.00% | 7.00% | Yes | O.C.G.A. § 48-5C-1 (Title Ad Valorem Tax, dealer trade-in reduces basis) |
| Hawaii | 4.00% | 0.50% | 4.50% | No | HRS § 237-13 (General Excise Tax passed to buyer) |
| Idaho | 6.00% | 0.03% | 6.03% | Yes | Idaho Code § 63-3619 |
| Illinois | 6.25% | 2.55% | 8.80% | Yes | 35 ILCS 120/ (Full trade-in credit restored; doc fee cap $377.63) |
| Indiana | 7.00% | 0.00% | 7.00% | Yes | Ind. Code § 6-2.5-2-1 |
| Iowa | 5.00% | 0.00% | 5.00% | Yes | Iowa Code § 321.105A (Fee for new registration) |
| Kansas | 6.50% | 2.21% | 8.71% | Yes | K.S.A. § 79-3603 |
| Kentucky | 6.00% | 0.00% | 6.00% | Yes | KRS § 138.460 (Motor vehicle usage tax on 90% retail value) |
| Louisiana | 4.45% | 5.10% | 9.55% | Yes | La. R.S. § 47:302 |
| Maine | 5.50% | 0.00% | 5.50% | Yes | 36 M.R.S. § 1811 |
| Maryland | 6.00% | 0.00% | 6.00% | Yes | Md. Code Ann., Transp. § 13-809 (Motor vehicle titling tax) |
| Massachusetts | 6.25% | 0.00% | 6.25% | Yes | Mass. Gen. Laws ch. 64H, § 2 |
| Michigan | 6.00% | 0.00% | 6.00% | Yes (Capped) | MCL § 205.51 (Trade-in credit capped annually at $12,000 for 2026) |
| Minnesota | 6.875% | 0.60% | 7.475% | Yes | Minn. Stat. § 297B.02 (Motor vehicle sales tax) |
| Mississippi | 5.00% | 0.00% | 5.00% | Yes | Miss. Code Ann. § 27-65-17 |
| Missouri | 4.225% | 4.16% | 8.385% | Yes | Mo. Rev. Stat. § 144.020 (Tax paid at license office; 180-day trade credit under § 144.025; $620.79 doc cap) |
| Montana | 0.00% | 0.00% | 0.00% | N/A | Mont. Code Ann. § 61-3-321 (Zero state tax; flat registration fee) |
| Nebraska | 5.50% | 1.47% | 6.97% | Yes | Neb. Rev. Stat. § 77-2703 |
| Nevada | 6.85% | 1.38% | 8.23% | Yes | NRS § 372.015 |
| New Hampshire | 0.00% | 0.00% | 0.00% | N/A | No state sales tax; local town registration fees based on MSRP |
| New Jersey | 6.625% | 0.00% | 6.625% | Yes | N.J.S.A. § 54:32B-3 (0.4% surcharge on vehicles over $45,000 or under 19 mpg) |
| New Mexico | 4.00% | 0.00% | 4.00% | Yes | NMSA 1978, § 7-14-3 (Motor vehicle excise tax) |
| New York | 4.00% | 4.52% | 8.52% | Yes | N.Y. Tax Law § 1105 (Local rates up to 4.875% in NYC) |
| North Carolina | 3.00% | 0.00% | 3.00% | Yes | N.C. Gen. Stat. § 105-187.3 (Highway Use Tax, max $2,000 commercial) |
| North Dakota | 5.00% | 1.96% | 6.96% | Yes | N.D. Cent. Code § 57-40.3-02 (Motor vehicle excise tax) |
| Ohio | 5.75% | 1.49% | 7.24% | Yes (New Only) | Ohio Rev. Code § 5739.01(H)(2). Doc fee cap $398 (ยง 4517.261). |
| Oklahoma | 4.50% | 0.00% | 4.50% | Partial | 68 O.S. § 1355 (1.25% sales tax after trade-in) and § 2104 (3.25% excise tax before trade-in, from 1 Jul 2026) |
| Oregon | 0.00% | 0.50% | 0.50% | N/A | ORS § 320.405 (Vehicle privilege tax 0.5% paid by dealer) |
| Pennsylvania | 6.00% | 0.40% | 6.40% | Yes | 72 P.S. § 7202 (Allegheny 7%, Philly 8%). Doc cap $490 elec / $409 manual. |
| Rhode Island | 7.00% | 0.00% | 7.00% | Yes | R.I. Gen. Laws § 44-18-18 |
| South Carolina | 5.00% | 0.00% | 5.00% | Yes | S.C. Code Ann. § 12-36-2110 (IMF capped at $500 max per vehicle) |
| South Dakota | 4.00% | 0.00% | 4.00% | Yes | SDCL § 32-5B-1 (Motor vehicle excise tax) |
| Tennessee | 7.00% | 2.75% | 9.75% | Yes | Tenn. Code Ann. § 67-6-202 (State single article tax 2.75% on $1,600 to $3,200) |
| Texas | 6.25% | 0.00% | 6.25% | Yes | Tex. Tax Code § 152.021 (Motor vehicle sales tax. SPV rule for private sales) |
| Utah | 4.85% | 2.35% | 7.20% | Yes | Utah Code § 59-12-103 |
| Vermont | 6.00% | 0.00% | 6.00% | Yes | 32 V.S.A. § 8903 (Purchase and use tax) |
| Virginia | 4.15% | 0.00% | 4.15% | No | Va. Code § 58.1-2402 (Motor Vehicle Sales and Use Tax / SUT. No trade credit) |
| Washington | 7.00% | 2.80% | 9.80% | Yes | RCW 82.08.020 (6.5% base + 0.5% MVET = 7.00% state base; $250 doc fee cap under RCW 46.70.180) |
| West Virginia | 6.00% | 0.55% | 6.55% | Yes | W. Va. Code § 17A-3-4 (Motor vehicle privilege tax) |
| Wisconsin | 5.00% | 0.44% | 5.44% | Yes | Wis. Stat. § 77.52 |
| Wyoming | 4.00% | 1.36% | 5.36% | Yes | Wyo. Stat. Ann. § 39-15-104 |
Key Factors Determining Your Final Vehicle Tax
While statutory state base rates establish the starting foundation, your drive-away purchase price is shaped by three key variables:
1. Local Municipal, County, and Special District Taxes
In 38 states, state sales tax is supplemented by discretionary local option sales taxes. In states like California, Kansas, Missouri, and Oklahoma, local municipal and county surcharges can add between 1.50% and 4.50% to the base state rate. Always verify combined rates based on the specific municipality where the vehicle will be garaged and registered.
2. The NOMAD States (0.00% State Sales Tax)
Five states, known by the acronym NOMAD (Alaska, Delaware, Montana, New Hampshire, and Oregon), do not levy a statewide retail sales tax on passenger cars. However, buyers should be aware of unique state-specific rules:
- Alaska: While there is no state sales tax, home-rule boroughs and municipalities (such as Juneau) levy local vehicle sales taxes up to 5.00%.
- Delaware: Imposes a 4.25% document fee in lieu of sales tax.
- Montana: 0.00% sales tax statewide with flat registration fees, but vehicles registered to Montana LLCs by non-residents face increasing scrutiny from home state revenue departments.
- New Hampshire: 0.00% sales tax, but cities collect municipal registration permit fees based on vehicle MSRP.
- Oregon: 0.00% sales tax, but levies a 0.50% Vehicle Privilege Tax on dealers and a 0.50% Vehicle Use Tax on buyers.
3. Trade-In Sales Tax Deductions (43 States vs 4 States + DC)
In 43 states, trading in your used car provides a major tax shield: sales tax is calculated only on the net difference between the purchase price and trade-in value. Only four states (California, Delaware, Hawaii, Virginia) plus the District of Columbia prohibit trade-in deductions, requiring sales tax to be paid on the full purchase price. Calculate your exact trade-in savings using our national Trade-in Tax Calculator.
4. Cross-Border Purchasing & Reciprocal Credits
Buying a vehicle across state lines does not allow you to avoid your home state sales tax. Under the commerce clause and state use tax statutes, your home state DMV will verify proof of sales tax paid upon registration. If the selling state charged less than your home state rate, you must pay the difference; if the selling state charged more, most states grant reciprocal tax credits up to their statutory rate. Read our in-depth walkthrough on buying a car out of state sales tax.
Frequently Asked Questions: US Car Sales Tax by State
Which states have no car sales tax?
Five states have zero state sales tax on vehicles: Alaska, Delaware, Montana, New Hampshire, and Oregon. Note that Delaware levies a 4.25% document fee, and some Alaska boroughs impose local municipal sales taxes.
Which state has the highest car sales tax?
California imposes the highest statewide base rate at 7.25%, with local district taxes pushing combined rates up to 10.75% in select cities. Combined rates in high-tax jurisdictions across Washington, Kansas, and Tennessee also frequently exceed 9.50% to 10.00%.
Do I pay car sales tax where I buy the car or where I register it?
You pay sales tax to the state where you register the vehicle, which is your legal home address. When you buy from an out-of-state dealership, the dealer either collects your home state tax rate or issues transit tags so you can remit tax directly at your local DMV.
Which states do not allow trade-in sales tax credits?
Only four states (California, Delaware, Hawaii, Virginia) plus the District of Columbia do not allow trade-in sales tax credits. In those jurisdictions, sales tax is assessed on the full purchase price before trade-in equity is applied. The remaining 43 states allow full trade-in tax deductions.
How are dealer documentation fees regulated across states?
Over a dozen states enforce statutory caps on dealer doc fees, including California ($85), Washington ($250), and Missouri ($620.79). Other states, such as Florida and Texas, have no statutory dollar caps, resulting in dealer fees often exceeding $500 to $999. See our full breakdown in the Dealer Doc Fees by State Directory.
Can I avoid sales tax by purchasing a car in a zero-tax state?
No. When you bring the car back to your home state to obtain title and license plates, your local DMV will assess and collect state and local use tax on the purchase price before registering the vehicle.
Explore State-Specific Car Tax Engines & Calculators
Select a dedicated state engine for line-by-line out-the-door price calculations, doc fee caps, and local DMV registration schedules: