Pennsylvania used car dealer paperwork and sales tax guide
How Pennsylvania sales tax works on a used-car deal, how trade-ins and dealer fees are treated, and the title forms and notices a Pennsylvania dealer prints.
Last checked November 14, 2026
This is a plain-language summary of how a used-car deal works out in Pennsylvania: the sales tax, what happens to a trade-in, how dealer fees are treated, and the paperwork a dealer prints. DMS Apex uses these same rules to work out each Pennsylvania deal.
Pennsylvania tax and fees at a glance
| Item | Pennsylvania |
|---|---|
| State tax | 6% state rate plus local tax |
| Who pays it | Collected by the dealer |
| Trade-in | Reduces the tax |
| Documentary preparation fee | Not part of the taxable amount |
| Service contract | Not taxed |
| Starting title fee in DMS Apex | $72 |
How Pennsylvania sales tax is worked out
Pennsylvania: 6% sales tax on the price after the trade-in, plus 1% for an Allegheny County buyer or 2% for a Philadelphia buyer (type 1 or 2 in the local box). The documentary fee is not taxed. The Buyer's Order prints the contract cancellation notice and, on an as-is sale, the as-is statement that 37 Pa. Code 301.4 requires. The state's 2026 documentary fee limits are $490 (electronic filing) and $409 (manual). Title fee starts at $72. The documentary fee is negotiable: do not pre-print it on a blank order, and post the notice sign in the dealership.
The as-is notice
Pennsylvania sets the wording for an as-is sale. DMS Apex prints it on the Buyer's Order when the sale is as is.
AS IS THIS MOTOR VEHICLE IS SOLD AS IS WITHOUT ANY WARRANTY EITHER EXPRESSED OR IMPLIED. THE PURCHASER WILL BEAR THE ENTIRE EXPENSE OF REPAIRING OR CORRECTING ANY DEFECTS THAT PRESENTLY EXIST OR THAT MAY OCCUR IN THE VEHICLE.
Other required notices
Pennsylvania requires the following wording on the Buyer's Order. DMS Apex prints it.
- This contract is not binding upon either the dealer or the purchaser until signed by an authorized dealer representative. YOU, THE BUYER, MAY CANCEL THIS CONTRACT AND RECEIVE A FULL REFUND ANY TIME BEFORE RECEIPT OF A COPY OF THIS CONTRACT SIGNED BY AN AUTHORIZED DEALER REPRESENTATIVE BY GIVING WRITTEN NOTICE OF CANCELLATION TO DEALER.
Pennsylvania paperwork a dealer prints
DMS Apex prints these documents for a Pennsylvania deal, all in black and white:
- Buyer's Order with the cancellation and as-is notices
- Buyers Guide
This is general information, not legal or tax advice. Pennsylvania rules change: confirm current requirements with the Pennsylvania Department of Transportation or the State Board of Vehicle Manufacturers, Dealers and Salespersons.
Common questions
How much is sales tax on a used car in Pennsylvania?
6% state rate plus local tax. A trade-in reduces the taxable amount. See the table above and confirm the current rate with the Pennsylvania Department of Transportation or the State Board of Vehicle Manufacturers, Dealers and Salespersons.
Does a trade-in lower the tax in Pennsylvania?
Yes. In Pennsylvania the trade-in allowance reduces the amount the tax is figured on.
Is the dealer fee taxed in Pennsylvania?
No. In DMS Apex the documentary preparation fee is not part of the taxable amount for Pennsylvania.
Does DMS Apex print Pennsylvania dealer forms?
Yes. It prints Buyer's Order with the cancellation and as-is notices, Buyers Guide.
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