How to Calculate Sales Tax of a Used Car

As soon as the good is purchased, sales tax will be imposed on that vehicle. Apart from the goods, the sales tax is also charged for the services. Generally, the sales tax is paid by the buyer of the good or service and is collected by the seller. The tax is paid to the government.

According to each state as well as county, the sales tax evaluation or calculation will be different.

When think about the sales tax for car, it varies with the state car’s taxable price. Changes in sales tax will obviously vary on the monthly payments of the tax. Sales tax calculation will vary from new car and the used car.

For calculating the sales tax, first you need to find out the sales tax rate. For doing this, you have to find out both the state as well as the local tax rates, as the tax rates will vary according to each and every town or district. After knowing about the sales tax rate, you have to consider the seller’s location of the used car. Find out the tax rate at the place where the seller stays.

Subtract the incentives from the price of the car, for that taxable price, calculate the sales tax by multiplying the sales tax rate with the taxable price, which gives the sales tax for the purchased used car.

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