Buying A Car: Out Of State Sales Tax

: Many dealerships are equipped to handle out-of-state sales. They may collect your home state's sales tax at the point of sale and remit it to your state's tax department on your behalf. If the dealer’s state tax is lower than yours, you may still owe the difference at your local DMV.

When you buy a car in a state other than where you live, sales tax is almost always determined by your —specifically the state where you register the vehicle. While it may be tempting to shop in a state with no sales tax, you will generally still owe your local rate when you go to get your plates. Where You Pay the Tax buying a car out of state sales tax

"Reciprocity" is an agreement between states to ensure you don't pay sales tax twice on the same purchase. How to Buy a Car Out of State - CARFAX : Many dealerships are equipped to handle out-of-state sales

The process for paying the tax depends heavily on whether you are buying from a professional dealership or a private seller. When you buy a car in a state