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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3022
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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If I purchase a new car in the state of California and pay

Customer Question

Hello,
If I purchase a new car in the state of California and pay sales tax, but later on need to bring it to another state, my understanding is that I need to pay for the use or sales tax there, correct?
Also, from what I understand I need to pay the difference between what I paid in CA and what I need to pay in another state (if anything), correct?
The reason I'm asking this question is because I need to purchase a car in CA, but I may be moving to another state for a new job. I do not know which state it might be yet. So, I'm looking for the answer of how much approximately I might need to pay for my purchased car in CA, brought into another state.
Would you please provide this information for every state, i.e. if I pay 7.5% sales tax in CA, how much additionally do I need to pay for the car in another state (for every state).
Thank you,
Yuliya
Submitted: 7 months ago.
Category: Tax
Expert:  Barbara replied 7 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

You pay sales tax based on where you register the car, not where you buy it.

In some cases, the dealership where you buy the car will collect your state's sales tax and then pass it along to your home state. However, keep careful records that show you paid the tax to avoid having to pay it a second time when you register the car.

The following link contains information regarding the 2016 sales tax rates for all 50 states:

http://taxfoundation.org/sites/taxfoundation.org/files/docs/LOST2016-01_0.png

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Expert:  Barbara replied 7 months ago.

Just following up with you to see if you have any other questions. If so, please let me know, and I will be happy to assist you further.

Best regards,

Barb