How Much Tax Will I Pay for a Used Car?
When purchasing a new vehicle, many buyers often only consider the advertised sticker price as their final cost. This number is what many people use when the calculate their budget and exactly what vehicle they can afford, depending either on their monthly payment or available cash. However, it is important to remember that the sticker price isn’t the final amount you will be paying for your vehicle of choice.
Sales tax, calculated as a percentage of the total price, will be added on during the purchase process.
Understanding how much you can expect to pay in sales tax on used cars can help you be a better-informed car buyer. Our Reliable Auto Sales team often gets asked, “how much tax will I pay for a used car?” Luckily, it is a simple calculation that anyone can do.
- First you will need to know the sales tax rate for your state. In Nevada, you can expect to pay an 8.25% sales tax rate on the purchase of all vehicles. In comparison to other states, that is a good tax rate, so you can rest assured that you are in a good position as a Nevada car buyer.
- Then, you need an idea of the price of the vehicle you are planning to purchase. Even if you don’t have a particular car selected, use the number that you are budgeting for the purchase. For example, perhaps you know you can afford $10,000 for a used car.
- Multiply the price of the vehicle (or your budgeted amount) by 0.0825. This is the decimal version of the sales tax percentage, and will give you a dollar amount for the tax cost. In the example where you are planning to spend $10,000, your tax cost is $825.
- You can add the tax cost to the vehicle cost to get your grand total. Keep in mind that depending on the dealership and finance company, you may need to plan for a few other small fees. However, this calculation can give you a good idea of the number you will be working with.
One way to ensure the cost of sales tax doesn’t throw off your used car budget is to work with a car dealership that has fair prices, a knowledgeable sales team who can get you a good deal, and a finance process that cuts out excessive fees. In Las Vegas, Nevada, the team at Reliable Auto Sales works hard to do exactly that. You can test drive and purchase a variety of pre-owned cars at our dealership, and find one that works perfectly with your budget. Contact our team today to learn more about how you can drive home in a quality used vehicle!