Car Sales Tax by State

Three things change your out-the-door price from state to state: the vehicle sales or use tax rate, whether your trade-in reduces the taxable price, and whether the dealer's documentation fee is capped. Here they are for all 50 states and DC. Rates are the statewide base; counties and cities often add more, and rules change, so the state name links to a search for that state's own revenue or DMV page. Check it before you sign.

The exceptions that cost real money

No trade-in credit: California, Virginia, Hawaii and DC tax the full price even if you trade in. On a $40,000 car with a $15,000 trade in California, that is tax on $40,000, not $25,000: about $1,100 more at 7.25%.
Capped credit: Michigan phases its trade-in credit in year by year; Kentucky limits it on used-vehicle trades. Illinois caps the credit on used trades at $10,000 of trade value.
No sales tax at all: Alaska, Montana, New Hampshire and Oregon (Oregon charges a small dealer-paid privilege tax on new cars). Delaware has no sales tax but a 4.25% document fee on value, which is a tax by another name.
Doc fee caps: California ($85), New York ($175), Washington ($200), Ohio ($250 or 10%), Minnesota, Michigan, Illinois, Pennsylvania, Oregon, Maryland and West Virginia cap the fee. Everywhere else the dealer sets it, and $500 to $1,000 is common in Florida, Colorado and the Southeast.

Out-the-door math for your own numbers: Out-the-Door Price · Car Payment Calculator (has a tax-on-trade switch) · Trade-In Equity.

All 50 states and DC

Find your state

State	Vehicle sales / use tax	Trade-in credit	Doc fee cap	Notes
Alabama	2% state (auto rate; local adds)	Yes	No cap
Alaska	0% state (local up to ~7%)	Yes	No cap	No state sales tax; some boroughs charge their own.
Arizona	5.6% state TPT (local adds)	Yes	No cap
Arkansas	6.5% state (local adds)	Yes	No cap	Tax paid at registration, not to the dealer.
California	7.25% state (local up to ~10.75%)	No	$85	No trade-in credit: tax is on the full price.
Colorado	2.9% state (local adds)	Yes	No cap	Dealers may charge any doc fee; typical $500–$900.
Connecticut	6.35% (7.75% on vehicles over $50,000)	Yes	No cap
Delaware	0% sales tax; 4.25% document fee on value	Yes (reduces the document fee)	No cap	Delaware's 'document fee' is the vehicle tax.
District of Columbia	6%–10.1% excise by weight and MPG	No	No cap	Excise tax, not sales tax; rate depends on weight and fuel economy.
Florida	6% state (county adds up to 1.5% on the first $5,000)	Yes	No cap	Doc fees commonly $800–$1,000.
Georgia	7% TAVT (one-time title tax)	Yes	No cap	TAVT replaces sales tax and annual ad valorem.
Hawaii	4% GET (4.5% Oahu)	No	No cap	Tax is on the full price.
Idaho	6% state	Yes	No cap
Illinois	6.25% state (local adds; Chicago area higher)	Yes (used trades: credit capped at $10,000 on the trade value)	Capped, inflation-indexed (about $360–$380)
Indiana	7%	Yes	No cap
Iowa	5% one-time registration fee (in place of sales tax)	Yes	No cap
Kansas	6.5% state (local adds)	Yes	No cap
Kentucky	6% motor vehicle usage tax	Partial: credit only on new-vehicle trades in most cases	No cap	Check the Kentucky DOR rules for used trades.
Louisiana	5% state (local adds)	Yes	No cap	State rate rose to 5% in 2025.
Maine	5.5%	Yes	No cap
Maryland	6% excise tax	Yes (trade-in allowance deducted)	$500 (plus inflation adjustments)	Maryland's cap is written into state law; some lists wrongly show no trade credit.
Massachusetts	6.25%	Yes	No cap
Michigan	6%	Capped: trade-in credit limited (cap rises each year toward full credit by 2029)	$260 or 5% of price, whichever is less
Minnesota	6.875% motor vehicle sales tax	Yes	$125 cap (rises with a statutory formula)
Mississippi	5% on vehicles (7% general rate)	Yes	No cap
Missouri	4.225% state (local adds)	Yes	No cap	Paid at the DMV within 30 days.
Montana	0%	n/a	No cap	No sales tax; registration fees instead.
Nebraska	5.5% state (local adds)	Yes	No cap
Nevada	6.85% state (local adds)	Yes	No cap
New Hampshire	0%	n/a	No cap	No sales tax.
New Jersey	6.625%	Yes	No cap
New Mexico	4% motor vehicle excise tax	Yes	No cap
New York	4% state (local adds; NYC 8.875%)	Yes	$175
North Carolina	3% highway use tax	Yes	No cap
North Dakota	5% motor vehicle excise tax	Yes	No cap
Ohio	5.75% state (county adds)	Yes	$250 or 10% of price, whichever is less
Oklahoma	3.25% excise + 1.25% sales tax	Yes	No cap
Oregon	0% sales tax (0.5% vehicle privilege tax on new cars, paid by dealer)	n/a	$250 (new) / $115 (used) cap, indexed	No sales tax.
Pennsylvania	6% state (7% Allegheny, 8% Philadelphia)	Yes	Capped by statute, inflation-indexed (about $470–$480)
Rhode Island	7%	Yes	No cap
South Carolina	5% infrastructure maintenance fee, capped at $500	Yes	No cap	Tax is capped at $500 per vehicle.
South Dakota	4.2% motor vehicle excise tax	Yes	No cap
Tennessee	7% state (local adds, capped on the first $1,600)	Yes	No cap
Texas	6.25% motor vehicle sales tax	Yes	No statutory cap (typical $150–$250)	Texas has no legal cap; the $150 figure on some sites is a typical amount.
Utah	4.85% state (local adds)	Yes	No cap
Vermont	6% purchase and use tax	Yes	No cap
Virginia	4.15% motor vehicle sales and use tax (minimum $75)	No	No cap	No trade-in credit.
Washington	6.5% state + 0.3% motor vehicle tax (local adds)	Yes	$200
West Virginia	6% privilege tax	Yes	$500 cap (statute)
Wisconsin	5% state (county adds)	Yes	No cap
Wyoming	4% state (county adds)	Yes	No cap

Compiled Oct 20, 2026 from state revenue and DMV rules and 2026 dealer-industry summaries. Where published lists disagree (Texas and Florida doc fees, Maryland's trade credit) the note says so and the state's own rule is the one to trust. Found an error? Tell us and it gets fixed the same day.

Questions people ask

Do I pay sales tax on the price before or after the trade-in?

In most states, after: the trade-in value comes off the taxable price. California, Virginia, Hawaii and DC tax the full price. Michigan and Kentucky are partial.

Is the doc fee negotiable?

The fee itself usually is not, because dealers charge every customer the same amount. The price of the car is. If the doc fee is $900, ask for $900 off the price instead.

Which state's tax do I pay if I buy out of state?

Almost always the state where you register the car. Dealers in most states collect your home state's tax or none at all and you pay at your DMV.

Do leases get taxed the same way?

No. Most states tax each lease payment; a few (Texas, Illinois among them) tax the full price or cap cost up front. The lease calculator uses the payment method; check your state if it is one of the exceptions.