How Much is My Car Tax?Posted on January 8th, 2011 William No comments
When buying a new (or used) car, it may be worthwhile to look at how much you'll have to pay in taxes. In some states, this could make a significant difference in the overall cost of ownership of the car.
Suppose, for example, that I want to buy a new 2011 Toyota Camry. How much is road tax for my car? The answer is, it depends on the state. Some states, but not all, charge sales tax on cars, so that new Camry could have a couple thousand dollars in sales tax added on, increasing the price difference compared to an older car that's had time to depreciate.
You also will need to pay registration and title fees; these are technically not a tax, but it works out the same way. Every year, you'll have to renew your tags; you send the government a check and they send you a new sticker to put on your license plate. The cost of the renewal again varies widely by state; generally it depends on the value of the car. The rules for how much things cost often depend on the weight of the vehicle as well.
Still want to know what the tax will be for a new car? The rate is set by the state legislature and is subject to change, so go to your state's website - they should have that information available.
No related posts.