do you have to pay taxes when you sell a used car

Most car sales involve a vehicle that you bought new and are. Thus you have to pay.

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However if you purchase your vehicle 90.

. Do I Have to Pay Sales Tax on a Car When I Move. Do I Pay Taxes When Selling My Car. Just Now Multiply the vehicle price before trade-in or incentives by the sales tax fee.

For example if you bought the two-year-old SUV for the original retail price of. The short answer is maybe There are some circumstances where you must pay taxes on a car sale. Correct answer Yes you must pay vehicle sales tax when you buy a used car if you live in a state that has sales tax.

Typically most states charge between 5 and 9 for their sales tax says Ronald Montoya senior consumer advice editor at Edmunds. For example imagine you are purchasing a. Its very unusual for a used car sale to be a taxable event.

Yes used cars do have a sales tax and so you will have to pay a sales tax when you buy a used car. Even in the unlikely event that you sell your private car for more than you paid for it special. If you purchase a car in one state and then move to another you might still have to pay taxes.

In most cases you do not have to pay any taxes when you sell your car to a private seller or a company like The Car Depot. Selling a car for more than you have invested in it is considered a capital gain. You can determine the amount you are about to pay based on the Indiana excise tax table.

So if your used vehicle costs 20000. You do not need to pay sales tax when you are selling the vehicle. When Do You Pay Sales Tax On A Used Car.

Although a car is considered a capital. That is assuming that you live in a State which implements sales tax. Answer 1 of 5.

When you sell a car for more than it is worth you do have to pay taxes. Unless its part of negotiations the buyer will be required to pay all applicable fees and taxes to local. A taxable gain occurs when something sells for more than its cost basis.

The car sales tax is based on the state where you will register your vehicle so you will have to pay only the sales tax of the state you live in. Traditionally the buyer of a car is the one concerned about paying taxes. Used cars are not taxed in Alaska.

You likely paid a considerable amount of. California Vehicle Sales Tax Fees Calculator Find. Thankfully the solution to this dilemma is pretty simple.

The buyer is responsible for paying the sales tax. Answered by Edmund King AA President You dont have to pay any taxes when you sell a private car.

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