How to Avoid Paying Car Sales Tax: The Legal Way

States Without Sales Tax

Some states do not have car sales tax. If you buy and register your car in a state without sales tax for car purchases, then you will not have to pay this. Keep in mind that you pay sales tax for where you reside and register the car.

Buy Before Moving

If you plan to move to a state with no or lower sales tax, then you should register your new vehicle in that state. If you purchase a vehicle within 90 days of moving, you can register the car in the new state.

There are several exemptions for car sales tax, including: – Historic vehicles made before 1973. – Vehicles used for agriculture or forestry. – Disabled car owners do not have to pay sales tax. If you meet any of the exemptions listed, you must display your exemption certificate on your vehicle.

EVs can also help you save on taxes when buying a new car. You cannot claim the credits when buying a used EV or leasing a car.  Most of the time, the tax credits you can earn as incentives for buying EVs will outweigh the sales tax you pay.

Claim Tax Credits

Oftentimes, you will not have to pay vehicle sales tax on a purchase if you are disabled. The conditions and criteria for disability may vary by state, so you should check the policy for your state.

Disabled Customers

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