How much is car sales tax in my state?
Pick your state, type the car price, your trade-in, and your local rate. The answer is the sales tax on the car, with the trade-in credit your state allows.
- Car sales tax
- $2,187.50
On a $35,000.00 car with a $0.00 trade-in, the sales tax is $2,187.50 at 6.25%.
- Taxed price
- $35,000.00
- Trade-in credit
- $0.00
- Combined rate
- 6.25%
- Price plus tax, less trade-in
- $37,187.50
- Tax saved by the trade-in
- $0.00
Car sales tax: $2,187.50. On a $35,000.00 car with a $0.00 trade-in, the sales tax is $2,187.50 at 6.25%.
Car sales tax by trade-in value
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Estimates the sales tax on a car purchase: the state rate plus your local rate, on the price less your trade-in where the state gives a trade-in credit.
Example with the default inputs (State Texas, Car price $35,000.00, Trade-in value $0.00, Local rate 0%): On a $35,000.00 car with a $0.00 trade-in, the sales tax is $2,187.50 at 6.25%.
Method: Taxed price = price − trade-in credit (all of the trade-in, none, up to a cap, or new cars only, by state). Tax = taxed price × (state or vehicle rate + local rate) ÷ 100, at least the state minimum.
- An estimate, not tax advice. Trade-in rules and vehicle rates are from the Michigan Treasury table for 2026 (34 states); other states use the WP-80 general base rate, or the vehicle rate you type where the state has its own vehicle tax.
- Not modelled: title, registration, plate, and dealer fees; rebates and manufacturer incentives (some states tax the price before a rebate); caps on local tax; leases; and tax on a private-party sale.
- Rhode Island’s credit applies to passenger cars only; this page assumes a car.
- Local rates are typed by you; a trade-in larger than the price counts only up to the price.
Worked examples
Each example is checked against the calculator on every build.
- State Michigan, Car price $26,000.00, Trade-in value $12,000.00 gives Taxed price $14,000.00, Combined rate 6%, Car sales tax $840.00.Source: Michigan Treasury Form 485 (Rev. 1-26) page 2, Example A (step 2): 26,000 − 12,000 (2026 Michigan trade-in allowance) = 14,000 × 6% = 840
- State California, Car price $10,000.00, Trade-in value $5,000.00 gives Trade-in credit $0.00, Taxed price $10,000.00, Combined rate 7.25%, Car sales tax $725.00.Source: Michigan Treasury Form 485 (Rev. 1-26) page 2, Example B (step 1): no trade-in allowed in California, 10,000 × 7.25% = 725
- State Michigan, Car price $40,000.00, Trade-in value $15,000.00, Local rate 0% gives Trade-in credit $12,000.00, Car sales tax $1,680.00, Tax saved by the trade-in $720.00.Source: Michigan Treasury Form 485 (Rev. 1-26) page 2: the credit is the lesser of $12,000 and the trade-in
- State Texas, Car price $35,000.00, Trade-in value $10,000.00 gives Taxed price $25,000.00, Car sales tax $1,562.50, Price plus tax, less trade-in $26,562.50.Source: Michigan Treasury Form 485 (Rev. 1-26) page 2: Texas allows 100% of the trade-in, rate 6.25%
- State Virginia, Car price $1,000.00 gives Combined rate 4.15%, Car sales tax $75.00.Source: Michigan Treasury Form 485 (Rev. 1-26) page 2: Virginia 4.15% with a $75 minimum
- State Ohio, Car price $20,000.00, Trade-in value $5,000.00, The car is Used, Local rate 1.5% gives Trade-in credit $0.00, Combined rate 7.25%, Car sales tax $1,450.00.Source: Michigan Treasury Form 485 (Rev. 1-26) page 2: Ohio 5.75%, trade-in credit on new vehicle purchases only
How it works
- State rate. For Alabama (2%), Iowa (5%), and Virginia (4.15%), the vehicle rate from the Michigan Treasury table. For every other state, the state's general base sales tax rate (the table on the sales tax calculator), or 0 in Alaska, Delaware, Montana, New Hampshire, and Oregon. For Arkansas, the District of Columbia, Georgia, Maryland, Mississippi, Nebraska, New Mexico, North Carolina, Oklahoma, South Carolina, South Dakota, and West Virginia (states with a sales tax that are not in the Michigan table), you type your state's vehicle tax rate, and whether it takes off the trade-in; with no rate typed there is no answer.
- Trade-in credit. The trade-in counts only up to the price. The credit is all of it, except: none in California, Hawaii, and Virginia; up to $12,000 in Michigan; and none on a used car in Ohio.
- Taxed price = price − credit. Rate = state rate + local rate. Tax = taxed price × rate ÷ 100, but at least $75 in Virginia (for any price above 0).
- Price plus tax, less trade-in = price − trade-in + tax. Tax saved by the trade-in = credit × rate ÷ 100.
Rhode Island's credit is for passenger cars only; the page assumes a car. The Michigan table is for calendar year 2026.
Worked examples by hand
Michigan, $26,000 car, $12,000 trade-in (the Michigan Treasury example A). Taxed price 26,000 − 12,000 = $14,000; × 6% = $840.
California, $10,000 car, $5,000 trade-in (example B). No trade-in credit: 10,000 × 7.25% = $725.
Michigan, $40,000 car, $15,000 trade-in. The credit stops at $12,000: (40,000 − 12,000) × 6% = $1,680; the credit saves 12,000 × 6% = $720.
Texas, $35,000 car, $10,000 trade-in. 25,000 × 6.25% = $1,562.50; price less trade-in plus tax = $26,562.50.
Virginia, $1,000 car. 4.15% × 1,000 = $41.50, below the $75 minimum: $75.
Ohio, used $20,000 car, $5,000 trade-in, 1.5% local rate. No credit on a used car: 20,000 × 7.25% = $1,450.
Other questions people ask
How is sales tax on a car calculated?
Take the price, subtract the trade-in value if your state gives a trade-in credit, and multiply by the state rate plus your local rate. In Texas, a $35,000 car with a $10,000 trade-in is taxed on $25,000: 6.25% of that is $1,562.50.
Which states do not take the trade-in off the taxed price?
In the Michigan Treasury table for 2026, California, Hawaii, and Virginia tax the full price. Michigan takes off up to $12,000 of trade-in value in 2026, and Ohio gives the credit only on new vehicles. The other states in the table take off the full trade-in value.
Why does my state ask me to type a rate?
Several states tax vehicles with their own title, excise, or highway use tax instead of the general sales tax, for example Georgia (title ad valorem tax), North Carolina (highway use tax), and Oklahoma (excise tax). This page does not hold those rates, so type the rate from your state motor vehicle agency.
Do I pay sales tax on a used car?
Yes, in most states, at the same rate as a new car. Ohio is the exception here for the trade-in: its trade-in credit applies only to new vehicles.
Is sales tax paid on the price before or after rebates?
It depends on the state: some tax the price before a manufacturer rebate. This page taxes the price you type, so type the price your state taxes.
What does this calculator leave out?
Title, registration, plate, and dealer fees; rebate rules; leases; private-party sales; and caps on local tax. It is an estimate, not tax advice.