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I finally got the chance to talk to a dealer that sells at msrp, who has an allocation. However are the taxes this much usually? I live in north virginia car is located in Kentucky.
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You pay what the sales tax is where you live... so just do the math
The sales tax in the state that you are purchasing the vehicle from is 6%. So...$69,369 X 6% = $4,162.14
So, yes it's that much.
You always pay whatever the sales tax is in the state that you are purchasing the vehicle from, not your own state.
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I did talk to him apparently the zipcodes got mixed up so it's actually 4.15% not 6
You pay sales tax on the state that you live in even if you purchase it from another state
I also believe you pay Sales Tax based on YOUR home state.
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WRONG!!!!!!! You pay the sales tax in the state you are going to register the vehicle in regardless of where you purchase it. You DO NOT pay the sales tax in the state you purchase from if it is not your home registration state.
also since you had no down payment, trade in, you pay full tax on the full amount.
most states on trade in/down payment subtract that from the original price and tax you on the difference.
so if you had a 20k trade in, you would pay tax on $49,369 and not $69,369
so you would go from $4162.14 down to $2962.14 in tax (saving $1200 overall)
most states on trade in/down payment subtract that from the original price and tax you on the difference.
so if you had a 20k trade in, you would pay tax on $49,369 and not $69,369
so you would go from $4162.14 down to $2962.14 in tax (saving $1200 overall)
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Did not know about paying down and taxes. Good info. Pick up my TRD Pro in 20 days. March 17 Fingers crossed.
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This is not true. You always pay the tax based on the state where you are registering the vehicle.
There are a couple of caveats to that rule though:
- Most dealers will collect taxes for your state and send them in for you, but not all.
- Some dealers don't want to deal with the hassle of this, so they will collect taxes based on their state, and then when you register your vehicle in your state, you will show the taxes paid, and you either will have to pay the difference if you owe more (taxes in your state are higher than the state you bought it in), or get a credit if you paid more in taxes than your state would have collected.
correct you pay taxes in the state it is registered.
now you do have some next door states reciprocate and pay taxes based on where you live.
i know in MN you can pay ND tax rate so when i register in ND the taxes are already paid by the dealer to ND and not all dealers will do this.
just note if your state doesnt do this, then you pay no taxes but when you registered state will require you pay them at time of registration.
In Texas only a trade in will knock the value down you get taxed on. Cash won't have the same effect. That's why sometimes the tax saving might be better than selling a used car on the street vs trade-in (usually get less value than street). You just got to weigh the math and see what's better.
That sounds right to me....except that extra dealer fee.....$498I finally got the chance to talk to a dealer that sells at msrp, who has an allocation. However are the taxes this much usually? I live in north virginia car is located in Kentucky.
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