How to Avoid Paying Sales Tax on a Used Car

Tiny car with coins and finance paperwork

 

Are you about to purchase a used car and wondering how to avoid paying sales tax? Maybe you’re wondering, “Do you pay sales tax on a used car?” In most states, car buyers by law are mandated to pay sales tax, but there are some exceptions depending on the location, driver, and vehicle. Learn more about sales tax on used cars below, and if you have questions reach out to the sales team at Beach Automotive Group.

 

 

When Sales Tax on Used Cars Isn’t Required

There are a handful of states that don’t charge sales tax on used cars or new vehicles, which include:

  • Delaware
  • Alaska
  • Oregon
  • Montana
  • New Hampshire

If you live in one of these states, and plan to register your vehicle in that state, you won’t need to pay sales tax. Some Conway drivers think that simply purchasing a car in a state that doesn’t have sales tax will keep you from paying sales tax. But if you’re planning to relocate to one of these states with no sales tax, you can register your vehicle in your new state of residency if you purchase within 90 days of moving.

What Are Some Used Car Sales Tax Exemptions?

There are times when used car sales tax exemptions are granted, even when a person lives in a state that requires over 7% sales tax, like Nevada or California. These are some legal sales tax exemptions:

  • Vehicles that were manufactured before 1973 because they’re considered historic models.
  • Vehicles made and used for forestry and agriculture.
  • Certain people with disabilities.

If you qualify for an exemption, make sure your exemption certification is clearly displayed on your Murrells Inlet vehicle!

Tax Credits for EVs Can Outweigh Sales Tax

Another way to avoid sales tax on used cars is to purchase an electric vehicle, but you don’t apply those tax credits when you buy the car. Instead, you get tax credits with ownership, which helps offset the cost of the electric vehicle. Before buying an EV, make sure you’re aware of the federal and state regulations for tax credits.

Shop For Your Next Car at Beach Automotive Group Today!

Now that you know the answer to the question, “Do you pay sales tax on a used car?” we invite you to shop for your next vehicle at Beach Automotive Group. We have an extensive inventory of competitively priced gently used vehicles. Check out our pre-owned vehicle specials and apply for financing online before your visit. We’re here for you so don’t hesitate to contact us.

 

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