Research
State dealer tax index: sales tax, trade-ins and fees in all 50 states and DC
One table for all 50 states and DC: the state tax on a used-car sale, who pays it, trade-in treatment, dealer fee and service contract treatment, and the starting title fee.
Last checked November 14, 2026
Every independent dealer works across the same handful of questions: what is the rate, who collects it, does the trade-in come off, is the dealer fee taxed, and is a service contract taxed? This index answers them for every state and the District of Columbia, from the rules DMS Apex uses to work out each deal.
| State | State tax | Who pays it | Trade-in | Dealer fee | Service contract | Title fee |
|---|---|---|---|---|---|---|
| Alabama | 2% state rate plus local tax | Collected by the dealer | Reduces the tax | Taxed | Not taxed | $16.50 |
| Alaska | No state sales tax on the deal plus local tax | Collected by the dealer | Reduces the tax | Not taxed | Not taxed | $15 |
| Arizona | 5.6% state rate plus local tax | Collected by the dealer | Reduces the tax | Not taxed | Not taxed | $4 |
| Arkansas | Arkansas sales tax: the rate depends on the price plus local tax | Buyer, at titling or registration | Reduces the tax | Taxed | Taxed | $10 |
| California | 7.25% state rate plus local tax | Collected by the dealer | Does not reduce the tax | Taxed | Not taxed | $28 |
| Colorado | 2.9% state rate plus local tax | Collected by the dealer | Reduces the tax | Taxed | Not taxed | $0 |
| Connecticut | Connecticut sales tax (6.35%): the rate depends on the price | Collected by the dealer | Reduces the tax | Taxed | Taxed | $25 |
| Delaware | 5.25% state rate | Buyer, at titling or registration | Reduces the tax | Not taxed | Not taxed | $35 |
| District of Columbia | No state sales tax on the deal | Buyer, at titling or registration | Reduces the tax | Not taxed | Not taxed | $30 |
| Florida | 6% state rate plus the buyer's county surtax on the first $5,000 | Collected by the dealer | Reduces the tax | Taxed | Taxed | $75.25 |
| Georgia | 7% title ad valorem tax (TAVT) | Collected with the title application | Reduces the tax | Taxed | Not taxed | $18 |
| Hawaii | 4% state rate plus local tax | Collected by the dealer | Reduces the tax | Taxed | Taxed | $10 |
| Idaho | 6% state rate | Collected by the dealer | Reduces the tax | Taxed | Not taxed | $14 |
| Illinois | 6.25% state rate plus local tax | Collected by the dealer | Reduces the tax | Taxed | Not taxed | $165 |
| Indiana | 7% state rate | Collected by the dealer | Reduces the tax | Taxed | Not taxed | $15 |
| Iowa | 5% state rate | Buyer, at titling or registration | Reduces the tax | Not taxed | Not taxed | $35 |
| Kansas | 6.5% state rate plus local tax | Collected by the dealer | Reduces the tax | Taxed | Taxed | $10 |
| Kentucky | 6% state rate | Buyer, at titling or registration | Reduces the tax | Taxed | Not taxed | $9 |
| Louisiana | 5% state rate plus local tax | Collected by the dealer | Reduces the tax | Taxed | Not taxed | $68.50 |
| Maine | 5.5% state rate | Collected by the dealer | Reduces the tax | Taxed | Taxed | $33 |
| Maryland | 6.5% state rate | Collected by the dealer | Reduces the tax | Taxed | Not taxed | $200 |
| Massachusetts | 6.25% state rate | Buyer, at titling or registration | Reduces the tax | Taxed | Not taxed | $75 |
| Michigan | 6% state rate | Collected by the dealer | Reduces the tax | Taxed | Not taxed | $15 |
| Minnesota | 6.875% state rate | Buyer, at titling or registration | Reduces the tax | Not taxed | Not taxed | $8.25 |
| Mississippi | 5% state rate | Collected by the dealer | Reduces the tax | Taxed | Not taxed | $9 |
| Missouri | 4.225% state rate plus local tax | Buyer, at titling or registration | Reduces the tax | Taxed | Not taxed | $8.50 |
| Montana | No state sales tax on the deal | Nothing to collect | Reduces the tax | Not taxed | Not taxed | $12.36 |
| Nebraska | 5.5% state rate plus local tax | Buyer, at titling or registration | Reduces the tax | Taxed | Taxed | $10 |
| Nevada | 6.85% state rate plus local tax | Collected by the dealer | Reduces the tax | Taxed | Taxed | $28.25 |
| New Hampshire | No state sales tax on the deal | Nothing to collect | Reduces the tax | Not taxed | Not taxed | $35 |
| New Jersey | 6.625% state rate | Collected by the dealer | Reduces the tax | Taxed | Taxed | $60 |
| New Mexico | 4% state rate | Buyer, at titling or registration | Reduces the tax | Not taxed | Not taxed | $0 |
| New York | 4% state rate plus local tax | Collected by the dealer | Reduces the tax | Not taxed | Taxed | $50 |
| North Carolina | 3% state rate | Collected by the dealer | Reduces the tax | Taxed | Not taxed | $66.75 |
| North Dakota | 5% state rate | Buyer, at titling or registration | Reduces the tax | Not taxed | Not taxed | $5 |
| Ohio | 5.75% state rate plus local tax | Collected by the dealer | Does not reduce the tax | Not taxed | Taxed | $18 |
| Oklahoma | 1.25% state rate | Buyer, at titling or registration | Reduces the tax | Not taxed | Not taxed | $11 |
| Oregon | No state sales tax on the deal | Nothing to collect | Reduces the tax | Not taxed | Not taxed | $101 |
| Pennsylvania | 6% state rate plus local tax | Collected by the dealer | Reduces the tax | Not taxed | Not taxed | $72 |
| Rhode Island | 7% state rate | Buyer, at titling or registration | Reduces the tax | Taxed | Not taxed | $53.50 |
| South Carolina | 5% state rate | Collected by the dealer | Reduces the tax | Not taxed | Not taxed | $15 |
| South Dakota | 4% state rate | Buyer, at titling or registration | Reduces the tax | Taxed | Taxed | $10 |
| Tennessee | 7% state rate plus local tax | Collected by the dealer | Reduces the tax | Taxed | Taxed | $14 |
| Texas | 6.25% motor vehicle sales tax | Collected by the dealer | Reduces the tax | Not taxed | Not taxed | $33 ($28 in some counties) |
| Utah | 4.85% state rate plus local tax | Collected by the dealer | Reduces the tax | Taxed | Taxed | $6 |
| Vermont | 6% state rate | Buyer, at titling or registration | Reduces the tax | Taxed | Not taxed | $42 |
| Virginia | 4.15% state rate | Collected by the dealer | Does not reduce the tax | Taxed | Not taxed | $15 |
| Washington | 6.5% state rate plus local tax | Collected by the dealer | Reduces the tax | Not taxed | Taxed | $40 |
| West Virginia | 6% state rate | Collected by the dealer | Reduces the tax | Not taxed | Not taxed | $15 |
| Wisconsin | 5% state rate plus local tax | Collected by the dealer | Reduces the tax | Taxed | Taxed | $214.50 |
| Wyoming | 4% state rate plus local tax | Buyer, at titling or registration | Reduces the tax | Taxed | Not taxed | $15 |
How to read the table
- State tax shows the state rate. Where local tax applies it is added on top and is entered or picked from the buyer's county.
- Who pays it tells you whether the dealer collects the tax on the deal or the buyer pays it to the state when titling.
- Trade-in says whether the trade-in allowance reduces the amount the tax is figured on.
- Dealer fee says whether your documentary, administrative or similar fee is part of the taxable amount.
- Title fee is the starting fee DMS Apex puts on a new sale. It is a starting point you can change.
Rules change and have exceptions. This table summarizes the rules DMS Apex uses to work out a standard used-car sale and is not legal or tax advice. Confirm current requirements with your state agency or an accountant, and re-check every January.
Common questions
How often does this index change?
State rules change, usually at the start of a year or fiscal year. DMS Apex is re-checked against official sources, and Florida's county surtax table is updated every January.
Run your lot, deals and paperwork in one place
DMS Apex is $28 a month with a 15-day free trial. It prints your state's forms and works out your state's tax.
Start your 15-day free trial