What Taxes Are Required When Buying a Car in the U.S.?
2 Answers
When buying a car in the U.S., you need to pay sales tax, purchase tax, fuel tax, etc. Here are the details: Sales Tax: This is a general term for taxes levied on the turnover of consumer goods. It is a tax imposed by the government on consumer goods and can be collected from wholesalers or retailers. Purchase Tax: Purchase tax is a tax levied by tax authorities on the acquisition of specified goods and properties within the scope of the tax system, such as vehicle purchase tax. Fuel Tax: Fuel tax is a special tax imposed by the government on fuel at the retail level. A certain proportion is extracted from the fuel price through taxation to cover road maintenance and other expenses.
I recently bought a car in the U.S., and taxes were a key factor. Generally, you have to pay a sales tax, which is a percentage of the car's price and varies by state. For example, in California where I am, it's 7.25%, while some states like Oregon have no sales tax. You'll also need to pay a vehicle ownership tax and registration fees. The ownership tax is roughly $100 to $300, and registration fees are usually renewed annually, with costs depending on the vehicle type—new cars might be around $150. Additionally, if you buy a car from another state, you might be charged a use tax. These fees combined can account for 5-10% of the car's price. I recommend checking your state's tax website before purchasing, where you can enter your ZIP code to find the exact rates. Don’t forget to factor in ongoing costs like annual inspections or increased insurance premiums to avoid budget overruns. Once you sign the contract, these taxes will be added to the bill—just review the receipt carefully to see the breakdown.
