Car sales tax by state (2026)
Vehicle purchases are taxed differently from grocery-store sales in many states. This table lists the statewide vehicle rate, a typical local add-on band, and whether a trade-in reduces the taxable base — as of 2026-07-13.
One-sentence answer: State vehicle tax rates in this file range from 0% (no vehicle sales tax) to high single digits before local add-ons, and trade-in treatment is full, partial, or none depending on the state.
Vehicle sales/excise tax by U.S. state: tax type, state rate, typical local add-on band, and trade-in credit rule. Rates apply to vehicle purchases, which several states tax differently from general retail sales.
| State | Code | Tax type | State rate (%) | Typical local add-on (%) | Trade-in credit | Notes |
|---|---|---|---|---|---|---|
| Alabama | AL | Sales tax (automotive rate) | 2 | 0.5–3.5 | Full credit | Automotive rate is lower than Alabama's 4% general rate; county/city automotive rates add on. |
| Alaska | AK | No state sales tax | 0 | 0–7.5 | No vehicle tax | No state sales tax; some boroughs/cities levy a local sales tax that can reach vehicles. |
| Arizona | AZ | Transaction privilege tax (TPT) | 5.6 | 0.7–3.4 | Full credit | County + city TPT add-ons vary; annual VLT (value-based) is charged separately at registration. |
| Arkansas | AR | Sales tax | 6.5 | 1–5 | Full credit | Vehicles priced under $4,000 are exempt; reduced rate band applies from $4,000-$10,000. |
| California | CA | Sales/use tax | 7.25 | 0–3.5 | None | District taxes push combined rates to roughly 7.25-10.75% depending on address. |
| Colorado | CO | Sales/use tax | 2.9 | 1–8 | Full credit | Low state rate but heavy county/city/district add-ons; annual specific ownership tax (value-based) is separate. |
| Connecticut | CT | Sales tax | 6.35 | — | Full credit | 7.75% on vehicles priced over $50,000. Annual municipal motor vehicle property tax is separate. |
| Delaware | DE | Vehicle document fee (in lieu of sales tax) | 4.25 | — | Full credit | No sales tax; the 4.25% DMV document fee functions as the purchase tax. |
| District of Columbia | DC | Vehicle excise tax | — | — | None | Rate schedule roughly 1-10.1% set by vehicle weight and city MPG (rules updated Feb 2025); EVs pay reduced rates. |
| Florida | FL | Sales tax | 6 | 0.5–1.5 | Full credit | County discretionary surtax applies only to the first $5,000 of the price. |
| Georgia | GA | Title ad valorem tax (TAVT), one-time | 7 | — | Full credit | One-time tax at titling; no annual ad valorem for vehicles under TAVT. |
| Hawaii | HI | General excise tax (GET) | 4 | 0–0.5 | None | County surcharges up to 0.5%; dealers typically pass GET through at 4.166-4.712%. |
| Idaho | ID | Sales tax | 6 | — | Full credit | — |
| Illinois | IL | Sales/use tax | 6.25 | 0.25–3.5 | Full credit | Chicago-area combined rates run roughly 8.25-10.25%. |
| Indiana | IN | Sales tax | 7 | — | Full credit | — |
| Iowa | IA | Fee for new registration (in lieu of sales tax) | 5 | — | Full credit | 5% one-time fee on the purchase price less trade-in, paid at registration. |
| Kansas | KS | Sales tax | 6.5 | 1–4 | Full credit | Annual county property tax on vehicles is separate. |
| Kentucky | KY | Motor vehicle usage tax | 6 | — | Partial | Annual ad valorem property tax on vehicles is separate. |
| Louisiana | LA | Sales tax | 5 | 4–7 | Full credit | State rate rose to 5% on Jan 1, 2025; parish/local add-ons are among the highest in the country. |
| Maine | ME | Sales tax | 5.5 | — | Full credit | Annual municipal excise tax (value/age-based) is separate. |
| Maryland | MD | Vehicle excise tax (in lieu of sales tax) | 6.5 | — | Full credit | Rate rose from 6% to 6.5% effective July 1, 2025; minimum taxable value rules apply. |
| Massachusetts | MA | Sales/use tax | 6.25 | — | Full credit | Annual municipal motor vehicle excise ($25 per $1,000 of valuation) is separate. |
| Michigan | MI | Sales tax | 6 | — | Partial | — |
| Minnesota | MN | Motor vehicle sales tax | 6.875 | — | Full credit | Vehicle sales are exempt from general local sales taxes; a flat $10 in-lieu tax applies to certain older vehicles. |
| Mississippi | MS | Sales tax (vehicle rate) | 5 | — | Full credit | 5% on cars/light trucks; annual county ad valorem tax on vehicles is separate. |
| Missouri | MO | Sales tax | 4.225 | 2–6 | Full credit | — |
| Montana | MT | No sales tax | 0 | — | No vehicle tax | No sales tax; registration fees (age-based) and a luxury-vehicle fee apply instead. |
| Nebraska | NE | Sales tax | 5.5 | 0.5–2 | Full credit | Annual motor vehicle tax (value/age-based) is separate. |
| Nevada | NV | Sales tax | 6.85 | 0–1.53 | Full credit | Combined rates run 6.85-8.375% by county; annual governmental services tax (value-based) is separate. |
| New Hampshire | NH | No sales tax | 0 | — | No vehicle tax | No sales tax; town registration permit fee (value/age-based) applies annually. |
| New Jersey | NJ | Sales tax | 6.625 | — | Full credit | The former EV sales-tax exemption has been phased out; EVs are now taxed at the full rate. |
| New Mexico | NM | Motor vehicle excise tax | 4 | — | Full credit | — |
| New York | NY | Sales tax | 4 | 3–4.88 | Full credit | Tax is charged at the rate of the registrant's home jurisdiction; combined rates typically 7-8.88%. |
| North Carolina | NC | Highway use tax (HUT) | 3 | — | Full credit | 3% HUT in lieu of sales tax; annual county property tax on vehicles is separate. |
| North Dakota | ND | Motor vehicle excise tax | 5 | — | Full credit | — |
| Ohio | OH | Sales tax | 5.75 | 0.75–2.25 | Partial | — |
| Oklahoma | OK | Excise tax 3.25% + sales tax 1.25% | 4.5 | — | Full credit | Combined 4.5% on dealer sales; used-vehicle excise uses a $20 floor on the first $1,500. |
| Oregon | OR | No sales tax (0.5% dealer privilege/use tax on new vehicles) | 0.5 | — | No vehicle tax | No retail sales tax; dealers owe a 0.5% privilege tax on new-vehicle sales, commonly passed through. |
| Pennsylvania | PA | Sales tax | 6 | 0–2 | Full credit | +1% in Allegheny County, +2% in Philadelphia. |
| Rhode Island | RI | Sales tax | 7 | — | Full credit | — |
| South Carolina | SC | Infrastructure maintenance fee (IMF) | 5 | — | Full credit | IMF is capped at $500 per vehicle; annual county property tax on vehicles is separate. |
| South Dakota | SD | Motor vehicle excise tax | 4 | — | Full credit | — |
| Tennessee | TN | Sales tax | 7 | 1.5–2.75 | Full credit | Local tax applies only to the first $1,600 (max ~$44); state single-article tax of 2.75% applies to the $1,600-$3,200 slice (max $44). |
| Texas | TX | Motor vehicle sales tax | 6.25 | — | Full credit | Flat 6.25% statewide; no local add-on on vehicle sales. Private-party used sales use at least 80% of standard presumptive value. |
| Utah | UT | Sales tax | 4.85 | 2–4.2 | Full credit | — |
| Vermont | VT | Purchase and use tax | 6 | — | Full credit | — |
| Virginia | VA | Motor vehicle sales and use tax (SUT) | 4.15 | — | None | $75 minimum tax; annual local personal property tax on vehicles is separate. |
| Washington | WA | Sales tax + 0.3% motor vehicle tax | 6.8 | 1.5–4.1 | Full credit | 6.5% state + 0.3% motor vehicle sales/use tax; combined rates often 8.5-10.6%. RTA excise applies at registration in the Sound Transit district. |
| West Virginia | WV | Sales tax (privilege tax) | 6 | — | Full credit | $30 flat on vehicles priced under $500. |
| Wisconsin | WI | Sales tax | 5 | 0–0.9 | Full credit | County taxes add 0.5% in most counties; city of Milwaukee adds more. |
| Wyoming | WY | Sales tax | 4 | 1–2 | Full credit | — |
Local rates are shown as bands because many states let cities and counties stack their own automotive rates. A buyer in a high-add-on county can see a several-point gap versus a rural ZIP in the same state.
Trade-in credit is often worth more than a small price concession. In a full-credit state, a $5,000 trade allowance at an 8% combined rate saves about $400 in tax; in a no-credit state that same allowance does not shrink the taxable base.
Title ad valorem and hybrid systems are labeled in the tax-type column. Those systems replace a pure sales-tax percentage with a titled-value formula — use the note field and the state agency schedule before treating the percentage as final.
Sources
- Florida Dept. of Revenue TIP 26A01-01, Motor Vehicle Sales Tax Rates by State (Feb 11, 2026
- Georgia DOR, Title Ad Valorem Tax (TAVT
- Maryland MVA, Excise Tax
- Kentucky DOR, Motor Vehicle Usage Tax
- Oklahoma Statutes tit. 68 sec. 2103 (trade-in credit
- DC DMV, Vehicle Title and Excise Tax Fees
Compiled as of 2026-07-13. Not tax advice. Confirm with your state department of revenue or motor vehicle agency.
Frequently asked questions
Which state has the highest car sales tax?
It depends how you count local add-ons. Several states post a mid-single-digit state rate but allow local rates that push the combined total near or above 10%. Always check the local band in the table, not only the state rate.
Do I pay sales tax on a trade-in?
In full-credit states you usually pay tax only on the difference between the new price and the trade-in allowance. Partial-credit states limit that benefit; none-credit states tax the full price. A handful of states have no vehicle sales tax at all.
Is vehicle tax the same as general sales tax?
Not always. Some states publish a separate automotive rate that is lower than the general merchandise rate. Title ad valorem taxes replace sales tax in a few states.
Are local rates included in the state column?
No. The state rate column is the statewide base only. Typical local add-on bands are listed separately because city and county rates change more often and vary within a state.
How current is this table?
As of 2026-07-13. Rates are compiled from state revenue and motor-vehicle publications listed under Sources. Confirm the final figure on your contract with the dealer and the state agency.