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Car Sales Tax Calculator

A $32,000 vehicle with an $8,000 trade-in, a $1,000 rebate, and a 6.5% tax rate owes about $1,495 in sales tax, for an out-the-door price near $24,495. Toggle whether your state taxes the trade-in below.

Details

Vehicle price ($)

Trade-in value ($)

Manufacturer rebate ($)

Sales tax rate (%)

Trade-in reduces taxable amount?

Results

Taxable amount -

Sales tax -

Out-the-door (price + tax \u2212 trade) -

Estimates only. Confirm exact terms with your lender or dealer.

By Jessica Martinez, Contributing Writer, Business & Finance · Updated 2026-07-02

How is sales tax calculated on a car purchase?

Enter the price, trade-in, rebate and your local tax rate. In most states the trade-in reduces the taxable amount (and rebates usually do too) - toggle that if your state taxes the full price.

Rules vary by state. A few states tax the full price regardless of trade-in - check your DMV.

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Good to know

FAQs

Does trade-in lower my tax?

In most states, yes - set the toggle to match your state.

What rate do I use?

Your combined state + local vehicle sales/use tax rate.

Are rebates taxed?

It varies; this tool subtracts the rebate before tax.

Is this official?

No - an estimate; your dealer/DMV figure is final.