State Sales Tax on a vehicle

[Cuz5150]

Can someone help me out with sales tax on a new vehicle, when are they applied.
Example:
MSRP $40,000
Discount $4,000
Price of unit $36,000
Now apply the tax or?
Down payment $3000
Price of unit $33,000
Now add the State sales tax?

Thanks

[RickFLM4]

Should be the $36K. Some states will net the value of your trade in so $36K minus trade in, depending on state. It would surprise me if any state deducts cash down payments before calculating sales tax.

[08njSTEP]

Purchase price=tax. What you paid for it is what you pay taxes on.

[SakhirM4]

Originally Posted by 08njSTEP

Purchase price=tax. What you paid for it is what you pay taxes on.

Not in Texas - they deduct any trade-in value before taxes.

[MKSixer]

Originally Posted by SakhirM4

Not in Texas - they deduct any trade-in value before taxes.

Same in Louisiana.

[08njSTEP]

Right after trade in is purchase price. What you paid for it. Out the door price.

[08njSTEP]

As a bit of odd info. In NH we don't pay sales tax on cars but the registration fee is based on msrp and is paid every year. So when I registered my 1966 they asked me what was the msrp in 1966. Lived a lot of places and this was a first. And registration is paid to the town and not through DMV.

[kscarrol]

Correct on tax in TX and LA after trade in but OP did not indicate there was a trade in, only a "discount". Assuming that was what was negotiated the tax will be applied to the $36,000 sale price.

[Cuz5150]

Thanks for everyone pitching in.
The purchase does not have a trade.
The $36K, im thinking is when they calculate the sales state tax.