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How to Figure Out the Sales Tax in Your State When You Buy a Car
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How to Figure Out the Sales Tax in Your State When You Buy a Car

Car and Driver · Jun 10, 2026, 3:00 PM

Key takeaways

  • There's no federal sales tax on vehicle sales, so your cost will vary from state to state.
  • (Asterisk.)Taxes by State, County, MunicipalityExemptions, Rebates, and CapsHeavy TollsFind the Sales Tax in Your State
  • A vehicle's MSRP might seem attractive, but the unfortunate truth is that it's often only the starting point.

Why this matters: an automotive development that could shape industry direction or buying decisions.

There's no federal sales tax on vehicle sales, so your cost will vary from state to state. Let us help you with that.

UCG|Getty Images Taxes are calculated in hugely different ways from state to state.States that have no actual sales tax can actually sometimes charge more than others with theoretically higher rates.In many cases, there are also registration charges and other fees that aren't technically a sales tax, but still hit you in the wallet.Jump to:States Charging Zip. Zero. Zilch. (Asterisk.)Taxes by State, County, MunicipalityExemptions, Rebates, and CapsHeavy TollsFind the Sales Tax in Your State

A vehicle's MSRP might seem attractive, but the unfortunate truth is that it's often only the starting point. Not only are dealers going to charge you freight and delivery, but there are also often upcharges and documentation fees that get added on. The good news, at least, is that when it comes to paying sales tax, you know what your costs are going to be up front.

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