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For most people, the only way to avoid paying sales taxes on a car purchase is to buy a car in a state without a sales tax. These states include: Alaska. Delaware. Montana. New Hampshire.
However, if you buy a car in Michigan or Idaho, they both have a flat state rate of 6%. $20,000 on a car there results in $1,200 sales tax. How to Avoid Paying Sales Tax on a Used Car Legally ...
Sales tax on large purchases, like a car, is crucial to factor into the price. Depending on where you live and the price of your car, sales tax can cost you thousands of dollars. But did you know ...
CarGurus shares answers to the most important questions about taxes when buying and selling a car.
With a tax rate of 8.25%, Nevada car owners pay nearly $4,000 on their new car purchases. Filling up at the pump is also pricey, costing almost $3,000 yearly. 1.
For example, if your state charges a combined 10 percent in state and local taxes, and you buy a $40,000 car, you can expect to pay $4000 in taxes. If you have a trade-in worth $10,000, you can ...
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