Do I pay sales tax on an auction car, and how is it calculated?
I'm budgeting for an auction purchase and trying to figure out taxes. Is sales tax charged on the winning bid amount? And if I buy from another state, which state's tax do I pay?
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asked Feb 15, 2024, 12:53 PM by Jess M.
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You pay sales tax based on your own state's rules and the purchase price. It's a government charge, separate from auction fees. If you buy cross-state, you still register and pay tax in your home state. The exact rate varies, so factor your local rate into your budget.
Check your state's DMV site for the exact rate. It's a percentage of the sale price, so a $15,000 car at 6.25% is about $940 in tax - real money to budget for.