Do I Have To Pay Taxes Twice If I Buy A Car Out Of State?

While you don’t have to pay sales tax twice, you may have to meet the difference if the state where you bought the car has a lower sales tax than your own.

There could also be local taxes to pay.

When buying from an individual seller, you’ll pay the tax when the car in registered.

Do you pay taxes twice if you 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.

How do I pay taxes if I buy a car out of state?

If you’ve bought a car from a dealership they will likely collect sales tax and pass it along to the proper agency in your state. You might have to pay the difference if that state’s sales tax is lower than yours, however. You may also have to pay any applicable local sales taxes.

Does it cost more to buy a car out of state?

Can I buy a car in another state? Yes, you can buy a car in another state. However, it’s not as simple as buying a car closer to home and might cost more. You need to make sure you pay your state’s sales tax, register it yourself and possibly get it inspected for environmental and safety standards.

Can I buy a car in another state and drive it home?

The primary concerns in driving a recently-purchased vehicle home from another state are being able to insure the vehicle and getting the necessary paperwork to legally drive the car until it is registered in the owner’s state. In other situations, a buyer may have to obtain coverage before driving the car home.