Tax Free Auto Purchase
Oregon, Alaska, Delaware, Montana and New Hampshire are five states that do not charge sales tax on car purchases.
If you wish to purchase a car and pay absolutely no sales tax, you would have to purchase the vehicle in one of the ‘no sales tax states’ and register it in that very state.
Do I have to pay taxes twice if I buy a car out of state?
In the U.S., most states levy a sales tax when you buy a new vehicle. If you buy a car out-of-state and bring it to your home state, though, it’s not always clear which state should receive the tax, since tax laws vary by state.
Can I buy a car in a state without sales tax?
If you don’t live in or near New Hampshire, Delaware, Montana, Oregon, Alaska, or New Mexico, other states offer the opportunity to buy a vehicle without paying sales tax. Buy a car in Maryland, North Carolina, Iowa, or South Dakota, and you might be able to skip the cost of sales tax on your Ford, Chevy, or Subaru.
Is sales tax on a car based on where you live or where you buy the car?
Yes, you must pay sales tax when you buy a used car if you live in a state that has sales tax. However, you do not pay that tax to the individual selling the car. You will pay it to your state’s DMV when you register the vehicle. Traveling out of state to buy a used car will not save you from paying state sales tax.
Can I buy a car in Oregon tax free?
There is no sales tax on any vehicle purchased in Oregon.
If you are buying a car in another state, make sure the dealer fills out paperwork for Oregon residents so that you do not have to pay sales tax.