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How to Avoid Paying Sales Tax on a Used Car?

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Sales taxes are taxes that increase the price of a used car, which is typically required by law. However, most Cincinnati drivers are looking for means to avoid paying or reducing sales taxes on used vehicles. Is this even possible? Below, you can learn more about sales taxes on used cars, and potential situations where you can avoid paying sales taxes. Afterward, feel free to apply for financing.



When Sales Tax on Used Cars Isn’t Required

There are a few states that don’t charge sales tax on new or used cars, which include:

  • Alaska
  • Delaware
  • Montana
  • New Hampshire
  • Oregon

Therefore, if you do not live in any of the states listed, or have your vehicle registered in that state, you will not need to pay sales tax. However, if you are buying a car in a different state, that does not mean you can get out of paying sales tax. If you plan to relocate to a different state with no car sales tax, you can register your car in your new state of residency if you buy within 90 days.

What Are Some Used Car Sales Tax Exemptions?

In some cases, you can avoid paying sales tax, even if you live in a state that requires over 7% sales tax such as California and Nevada. Some sales tax exemptions options are:

  • Vehicles that were made before 1973. They’re considered historic models.
  • Vehicles made for forestry and agriculture.
  • Certain individuals with a disability may qualify for a car sales tax exemption.

If you qualify for an exemption, be sure to see if you vehicle exemption is clearly displayed on your vehicle.

Tax Credits for EVs Can Outweigh Sales Tax

Purchasing an electric vehicle can save you a great deal on taxes. Keep in mind that you can’t use tax credits when purchasing the vehicle. However, you will earn tax with ownership when you buy a used car, which can offset the cost of your electric vehicle. Before opting for an eclectic vehicle, be sure to do your research on the rules and regulations on the federal and state credits for electric motor vehicles.

Start Shopping with Beechmont Toyota Today!

At Beechmont Toyota, you can find high-quality vehicles on Loveland or Mason roads. Don’t hesitate to contact us online at our finance center or call us at (513) 440-4962 to discuss your options!


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