No, you generally cannot legally drive a used car on public roads without paying the required taxes. The key tax is usually a sales tax applied at the time of purchase, which must be paid before you can register the vehicle and get license plates. Driving an unregistered vehicle is illegal and can result in fines, penalties, or even having the car impounded.
When you buy a used car from a private seller, you are responsible for paying the state and local sales tax when you register the car at your local Department of Motor Vehicles (DMV). If you buy from a dealership, they often collect and remit the sales tax on your behalf as part of the transaction. The tax is typically a percentage of the car's purchase price.
Beyond the initial sales tax, most states require an annual vehicle property tax or registration fee to keep the car legally on the road. Failure to pay these recurring fees will result in an expired registration. There are very few exceptions, such as certain non-operational vehicles stored on private property or specific tax-exempt situations (e.g., some disabled veterans or for vehicles used exclusively for farming).
Here is a quick overview of typical tax scenarios:
| Tax Type | Typical Trigger | Who Pays? | Consequence of Non-Payment |
|---|
| Sales Tax | Point of purchase | Buyer | Inability to register the vehicle |
| Annual Registration Fee / Property Tax | Renewal each year | Owner | Expired tags, tickets, fines |
| Use Tax | Registering an out-of-state purchase | Buyer | Same as unpaid sales tax |
The bottom line is that paying taxes is an inseparable part of car ownership. To drive legally, you must complete the titling and registration process, which requires settling all owed taxes first. If you're unsure about the costs in your state, check your local DMV's website for a fee calculator.
