{
  "id": "car-sales-tax",
  "version": "93ed8a0e6f2b",
  "status": "published",
  "name": "Car Sales Tax Calculator",
  "question": "How much is car sales tax in my state?",
  "summary": "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.",
  "category": "finance",
  "subcategory": "tax-and-pay",
  "url": "https://www.acalculator.org/finance/car-sales-tax-calculator",
  "markdown": "https://www.acalculator.org/finance/car-sales-tax-calculator.md",
  "kind": "function",
  "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.",
  "assumptions": [
    "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."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "state": {
        "title": "State",
        "description": "The state where you register the car.",
        "type": "string",
        "enum": [
          "AL",
          "AK",
          "AZ",
          "AR",
          "CA",
          "CO",
          "CT",
          "DE",
          "DC",
          "FL",
          "GA",
          "HI",
          "ID",
          "IL",
          "IN",
          "IA",
          "KS",
          "KY",
          "LA",
          "ME",
          "MD",
          "MA",
          "MI",
          "MN",
          "MS",
          "MO",
          "MT",
          "NE",
          "NV",
          "NH",
          "NJ",
          "NM",
          "NY",
          "NC",
          "ND",
          "OH",
          "OK",
          "OR",
          "PA",
          "RI",
          "SC",
          "SD",
          "TN",
          "TX",
          "UT",
          "VT",
          "VA",
          "WA",
          "WV",
          "WI",
          "WY"
        ]
      },
      "price": {
        "title": "Car price",
        "description": "The sale price of the car before tax, after any dealer discount.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 100000000
      },
      "trade": {
        "title": "Trade-in value",
        "description": "The value the dealer gives for the vehicle you trade in.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 100000000
      },
      "local": {
        "title": "Local rate",
        "description": "County and city sales tax on top of the state rate, in percent (0 if none).",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 20
      },
      "cond": {
        "title": "The car is",
        "description": "New or used; Ohio gives the trade-in credit only on a new car.",
        "type": "string",
        "enum": [
          "new",
          "used"
        ]
      },
      "vrate": {
        "title": "Your state’s vehicle tax rate",
        "description": "This state taxes vehicles with its own title, excise, or highway use tax: type its rate in percent.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 20
      },
      "credit": {
        "title": "My state takes the trade-in off the taxed price",
        "description": "Whether your state’s vehicle tax is on the price less the trade-in.",
        "type": "boolean"
      }
    }
  },
  "outputs": {
    "tax": {
      "label": "Car sales tax",
      "description": "The state and local tax on the taxed price.",
      "format": "money"
    },
    "taxable": {
      "label": "Taxed price",
      "description": "The price less the trade-in credit the state allows.",
      "format": "money"
    },
    "credit": {
      "label": "Trade-in credit",
      "description": "The part of the trade-in taken off the taxed price.",
      "format": "money"
    },
    "rate": {
      "label": "Combined rate",
      "description": "State (or vehicle) rate plus the local rate, in percent.",
      "format": "percent"
    },
    "total": {
      "label": "Price plus tax, less trade-in",
      "description": "The car price minus the trade-in value plus the tax: what you pay before fees.",
      "format": "money"
    },
    "saved": {
      "label": "Tax saved by the trade-in",
      "description": "The trade-in credit times the combined rate.",
      "format": "money"
    },
    "notice": {
      "label": "Note",
      "description": "A note on the state’s rule.",
      "format": "text"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "state": "TX",
      "price": 35000,
      "trade": 0,
      "local": 0,
      "cond": "new",
      "credit": true
    },
    "outputs": {
      "tax": 2187.5,
      "taxable": 35000,
      "credit": 0,
      "rate": 6.25,
      "total": 37187.5,
      "saved": 0
    },
    "text": "On a $35,000.00 car with a $0.00 trade-in, the sales tax is $2,187.50 at 6.25%."
  },
  "examples": [
    {
      "given": {
        "state": "MI",
        "price": 26000,
        "trade": 12000
      },
      "expect": {
        "taxable": 14000,
        "rate": 6,
        "tax": 840
      },
      "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"
    },
    {
      "given": {
        "state": "CA",
        "price": 10000,
        "trade": 5000
      },
      "expect": {
        "credit": 0,
        "taxable": 10000,
        "rate": 7.25,
        "tax": 725
      },
      "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"
    },
    {
      "given": {
        "state": "MI",
        "price": 40000,
        "trade": 15000,
        "local": 0
      },
      "expect": {
        "credit": 12000,
        "tax": 1680,
        "saved": 720
      },
      "source": "Michigan Treasury Form 485 (Rev. 1-26) page 2: the credit is the lesser of $12,000 and the trade-in; (40,000 − 12,000) × 6%; Python 3: (40000-12000)*0.06"
    },
    {
      "given": {
        "state": "TX",
        "price": 35000,
        "trade": 10000
      },
      "expect": {
        "taxable": 25000,
        "tax": 1562.5,
        "total": 26562.5
      },
      "source": "Michigan Treasury Form 485 (Rev. 1-26) page 2: Texas allows 100% of the trade-in, rate 6.25%; Python 3: 25000*0.0625"
    },
    {
      "given": {
        "state": "VA",
        "price": 1000
      },
      "expect": {
        "rate": 4.15,
        "tax": 75
      },
      "source": "Michigan Treasury Form 485 (Rev. 1-26) page 2: Virginia 4.15% with a $75 minimum; 4.15% × 1,000 = 41.50, so $75"
    },
    {
      "given": {
        "state": "OH",
        "price": 20000,
        "trade": 5000,
        "cond": "used",
        "local": 1.5
      },
      "expect": {
        "credit": 0,
        "rate": 7.25,
        "tax": 1450
      },
      "source": "Michigan Treasury Form 485 (Rev. 1-26) page 2: Ohio 5.75%, trade-in credit on new vehicle purchases only; Python 3: 20000*0.0725"
    }
  ],
  "sources": [
    "Michigan Department of Treasury, Form 485 (Rev. 1-26), 2026 Instructions for Michigan Vehicle Dealers, page 2 \"Sales tax rates and trade-in allowances\" (trade-in rules and vehicle rates for 34 states; Michigan trade-in cap $12,000 for 2026). https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/SUW/TY2026/485_11-25.pdf",
    "Tax Foundation, State and Local Sales Tax Rates, Midyear 2026 (state base rates, a cross-check source used by the WP-80 dataset). https://taxfoundation.org/data/all/state/sales-tax-rates/"
  ],
  "related": [
    "sales-tax",
    "auto-loan",
    "car-affordability"
  ],
  "changelog": []
}