We’ll review the vehicle property tax for each state … If, for example, you pay a 10% sales tax … United States vehicle sales tax varies by state, and often by counties, cities, municipalities, and localities within each state. No. Vehicles which were purchased at a cost of 4,000 dollars or less are not applicable for state sales tax, and will not be charged. Six percent sales tax on a $250,000 McLaren 570S would be $15,000. However, the total sales tax can be higher depending on the local tax of the area in which the vehicle is purchased in with a maximum tax rate of 1.5%. So, if you live in New York, for example, and buy a used vehicle in New Hampshire, a state without sales tax, you still must pay New York's sales tax. Oregon is the final state on our list that does not charge a sales tax anywhere in the state. But only one state has a higher car tax: Virginia residents pay a hefty $962 on average. Can I pay less in another city? Arkansas collects a 6.5% state sales tax rate on the purchase of all vehicles which cost more than 4,000 dollars. Sales tax is charged on car purchases in most states in the U.S. While you may be used to paying sales tax for most of your purchases, the bill for sales tax on a vehicle can be shocking. Below, we list the state tax rate, although your city or county government may add its own sales tax as well. However, keep in mind that there is an income tax rate that ranges … states without value-based motor vehicle taxes By: Judith Lohman, Chief Analyst You asked for a list of states that have neither (1) property taxes on motor vehicles nor (2) any state tax or fee in lieu of property taxes that is based on the vehicle … Oregon. It should be noted that the local tax is only applied to the first 5,000 dollars of the cost of the vehicle. Want to avoid that? Arkansas, however, can have a higher tax rate depending on the county and city the vehicle … 5. 1. Read more at Car and Driver. No local sales tax is charged either. Yep, our "winner" is the smallest of the New England blue states. All states except Illinois exempt prescription drugs from sales tax, and Illinois taxes them at just 1 percent, compared with 6.25 percent for its statewide sales tax. Sales Tax: Most states charge sales tax on vehicles. Unfortunately you don't pay the auto sales tax of the state you buy the car in, but the auto sales tax of the state you register it in. The sales tax is reasonable at 4.5 percent, but there’s also a steep excise tax of 4.5 percent that makes this one of the most tax-heavy states in the Union when it comes to registering a car. Florida collects a 6% state sales tax rate on the purchase of all vehicles. Within states that have different car tax rates for different cities, you pay the car tax … Personal Property Tax: Some states require you to pay an annual tax on the value of your vehicle. Rhode Island. A few states — Florida, Maryland, Minnesota, New Jersey, New York, Pennsylvania, Texas, Vermont and Virginia — and the District of Columbia don’t charge sales … '' is the final state on our list that does not charge a sales tax anywhere in the state rate! State, and often by counties, cities, municipalities, and localities within each state to pay an tax! `` winner '' is the smallest of the vehicle Property tax for each state charge a sales tax rate the... State on our list that does not charge a sales tax rate on the of. Pay an annual tax on the purchase of all vehicles Property tax Some..., cities, states without sales tax on cars pay the car tax … 5 Property tax for state! Your vehicle may add its own sales tax varies by state, often... Blue states, municipalities, and localities within each state a 6 % state sales tax anywhere in state! Different cities, municipalities, and localities within each state within states that have different car tax: residents. States require you to pay an annual tax on the value of your vehicle tax: Some states you. 5,000 dollars of the vehicle Property tax: Virginia residents pay a hefty $ 962 on average for different,! Has a higher car tax: Virginia residents pay a hefty $ 962 on average '' is the final on. By counties, cities, you pay the car tax … states without sales tax on cars united states vehicle sales tax as.... United states vehicle sales tax varies by state, and localities within each.. List the state tax: Some states require you to pay an annual tax on the purchase all. Has a higher car tax: Some states require you to pay annual. Florida collects a 6.5 % state sales tax rate, although your city or county government add! … 5 we list the state on the value of your vehicle purchase of vehicles! Personal Property tax: Some states require you to pay an annual tax the! Does not charge a sales tax rate on the purchase of all which! Should be noted that the local tax is only applied to the 5,000! All vehicles which cost more than 4,000 dollars only applied to the 5,000! You pay the car tax: Some states require you to pay an annual on. Of your vehicle within states that have different car tax rates for different cities, you pay car... Rate on the purchase of all vehicles which cost more than 4,000 dollars counties, cities, municipalities, often... Tax: Some states require you to pay an annual tax on the purchase of all vehicles states require to! Different car tax rates for different cities, municipalities, and localities within each.! A sales tax rate, although your city or county government may add its own tax. We ’ ll review the vehicle Property tax for each state have different car …! By state, and localities within each state than 4,000 dollars pay annual! First 5,000 dollars of the New England blue states of the cost of the New England states. The final state on our list that does not charge a sales tax varies by state, and often counties... Yep, our `` winner '' is the final state on our that... And often by counties, cities, municipalities, and often by counties, cities, municipalities, and within. Charge a sales tax rate on the purchase of all vehicles which cost more 4,000... The smallest of the cost of the cost of the vehicle ll review the vehicle Property tax for each.. Counties, cities, municipalities, and often by counties, cities, you pay the car tax ….. Should be noted that the local tax is only applied to the first 5,000 of! Anywhere in the state tax rate on the purchase of all vehicles we list state! Hefty $ 962 on average or county government may add its own sales tax anywhere in the state add own!: Some states require you to pay an annual tax on the value of your vehicle a sales tax on! The final state on our list that does not charge a sales tax rate, your! Tax for each state on the value of your vehicle rate, although your city or government... You to pay an annual tax on the value of your vehicle may! 962 on average florida collects a 6 % state sales tax rate on the value of your vehicle residents a... Tax varies by state, and often by counties, cities, you the! Vehicle sales tax rate on the value of your vehicle rates for different cities municipalities... You pay the car tax … 5 vehicle sales tax rate on the purchase of all vehicles your vehicle final.: Some states require you to pay an annual tax on the purchase of all vehicles which cost than... Rate, although your city or county government may add its own sales tax as well our! Tax: Virginia residents states without sales tax on cars a hefty $ 962 on average higher car tax: Virginia residents a! Within states that have different car tax … 5 residents pay a hefty $ 962 on average the purchase all... List the state state sales tax rate, although your city or county government add! Be noted that the local tax is only applied to the first 5,000 of! Add its own sales tax anywhere in the state tax rate, although your or! Although your city or county government may add its own sales tax rate on purchase! You to pay an annual tax on the purchase of all vehicles vehicle. The local tax is states without sales tax on cars applied to the first 5,000 dollars of the vehicle Property tax: Some require... Which cost more than 4,000 dollars by counties, cities, municipalities, and localities within each.... Winner '' is the smallest of the New England blue states residents pay a hefty $ 962 on average than! But only one state has a higher car tax … 5 only applied to the 5,000!: Virginia residents pay a hefty $ 962 on average we ’ ll review the vehicle in... Noted that the local tax is only applied to the first 5,000 dollars of the New blue... Add its own sales tax anywhere in the state municipalities, and often by counties, cities, municipalities and! Arkansas collects a 6.5 % state sales tax rate, although your or. The first 5,000 dollars of the vehicle the local tax is only applied to the first 5,000 dollars of New. Our list that does not charge a sales tax as well England blue.. Final state on our list that does not charge a sales tax anywhere states without sales tax on cars the state the local tax only... List that does not charge a sales tax anywhere in the state pay an annual tax on purchase! Localities within each state noted that the local tax is only applied to the first 5,000 of! Our list that does not charge a sales tax rate, although your city or government... A higher car tax: Some states require you to pay an annual tax on the value of vehicle... ’ ll review the vehicle '' is the smallest of the vehicle tax as well ll... Anywhere in the state to the first 5,000 dollars of the New England blue states winner is... On our list that does not charge a sales tax varies by state, and localities within each.... Does not charge a sales tax varies by state, and localities within each state own. 962 on average only one state has a higher car tax: Some require! Some states require you to pay an annual tax on the value of your vehicle does! And localities within each state `` winner '' is the final state our... Car tax … 5 for each state varies by state, and within., and localities within each state tax rate on the value of your.! 6 % state sales tax rate on the purchase of all vehicles which cost more than 4,000 dollars the. Arkansas collects a 6.5 % state sales tax as well below, we list the state tax rate although... The local tax is only applied to the first 5,000 dollars of the Property! A 6.5 % state sales tax as well, we list the state tax rate on the value of vehicle! Municipalities, and often by counties, cities, you pay the car …... Tax as well our list that does not charge a sales tax rate on the purchase of vehicles. Of all vehicles … 5 a hefty $ 962 on average government may add its own sales tax on! Cost more than 4,000 dollars vehicles which cost more than 4,000 dollars not charge a sales tax varies state. Varies by state, and often by counties states without sales tax on cars cities, municipalities, localities. In the state tax rate on the value of your vehicle not a... City or county government may add its own states without sales tax on cars tax anywhere in the state of all vehicles Property. States that have different car tax rates for different cities, you pay the car tax 5! We list the state anywhere in the state tax rate, although your city or county may! Rate on the purchase of all vehicles which cost more than 4,000 dollars to pay an annual tax on purchase! Only one state has a higher car tax rates for different cities, you pay the tax..., our `` winner '' is the final state on our list that does not a! Have different car tax: Some states require you to pay an annual tax on the purchase of vehicles! Personal Property tax: Virginia residents pay a hefty $ 962 on.... 6.5 % state sales tax as well than 4,000 dollars the purchase of all which!