# How much is car sales tax in my state?

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.

- Page: https://www.acalculator.org/finance/car-sales-tax-calculator
- JSON spec: https://www.acalculator.org/finance/car-sales-tax-calculator.json
- Version: 93ed8a0e6f2b

## Default answer

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%.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| state | State | The state where you register the car. |
| price | Car price | The sale price of the car before tax, after any dealer discount. |
| trade | Trade-in value | The value the dealer gives for the vehicle you trade in. |
| local | Local rate | County and city sales tax on top of the state rate, in percent (0 if none). |
| cond | The car is | New or used; Ohio gives the trade-in credit only on a new car. |
| vrate | Your state’s vehicle tax rate | This state taxes vehicles with its own title, excise, or highway use tax: type its rate in percent. |
| credit | My state takes the trade-in off the taxed price | Whether your state’s vehicle tax is on the price less the trade-in. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| tax | Car sales tax | The state and local tax on the taxed price. |
| taxable | Taxed price | The price less the trade-in credit the state allows. |
| credit | Trade-in credit | The part of the trade-in taken off the taxed price. |
| rate | Combined rate | State (or vehicle) rate plus the local rate, in percent. |
| total | Price plus tax, less trade-in | The car price minus the trade-in value plus the tax: what you pay before fees. |
| saved | Tax saved by the trade-in | The trade-in credit times the combined rate. |
| notice | Note | A note on the state’s rule. |

## 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.

## Worked examples

1. state = MI, price = $26,000.00, trade = $12,000.00 gives taxable = $14,000.00, rate = 6%, 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.
2. state = CA, price = $10,000.00, trade = $5,000.00 gives credit = $0.00, taxable = $10,000.00, rate = 7.25%, 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.
3. state = MI, price = $40,000.00, trade = $15,000.00, local = 0% gives credit = $12,000.00, tax = $1,680.00, saved = $720.00. Source: Michigan Treasury Form 485 (Rev. 1-26) page 2: the credit is the lesser of $12,000 and the trade-in.
4. state = TX, price = $35,000.00, trade = $10,000.00 gives taxable = $25,000.00, tax = $1,562.50, total = $26,562.50. Source: Michigan Treasury Form 485 (Rev. 1-26) page 2: Texas allows 100% of the trade-in, rate 6.25%.
5. state = VA, price = $1,000.00 gives rate = 4.15%, tax = $75.00. Source: Michigan Treasury Form 485 (Rev. 1-26) page 2: Virginia 4.15% with a $75 minimum.
6. state = OH, price = $20,000.00, trade = $5,000.00, cond = used, local = 1.5% gives credit = $0.00, rate = 7.25%, 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.

## FAQ

### 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.

## 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/