Car buying rules, state by state
What your state charges when you buy a car, whether a trade-in lowers the tax, and whether the dealer's documentation fee is limited by law. Each figure comes from an official state source and carries the date we last checked it.
| State | State rate on vehicles | Trade-in lowers the tax? | Doc fee limit |
|---|---|---|---|
| Alabama | 2% | Yes | Check with the state |
| Alaska | None | Check with the state | No cap |
| Arizona | 5.6% | Yes | No cap |
| Arkansas | 6.5% | Yes | $129 |
| California | 7.25% | No | $85 |
| Colorado | 2.9% | Yes | Check with the state |
| Connecticut | 6.35% | Yes | No cap |
| Delaware | 5.25% | Yes | Check with the state |
| District of Columbia | 1% to 11%, by weight and fuel economy | Check with the state | Check with the state |
| Florida | 6% | Yes | No cap |
| Georgia | 7% | Yes | Check with the state |
| Hawaii | 4% | Check with the state | Check with the state |
| Idaho | 6% | Yes | No cap |
| Illinois | 6.25% | Yes | Limited |
| Indiana | 7% | Yes | $261.72 |
| Iowa | 5% | Yes | $180 |
| Kansas | 6.5% | Yes | Check with the state |
| Kentucky | 6% | Yes | Check with the state |
| Louisiana | 5% | Yes | $436 |
| Maine | 5.5% | Yes | No cap |
| Maryland | 6.5% | Yes | $800 |
| Massachusetts | 6.25% | Yes | No cap |
| Michigan | 6% | Partly | $280 |
| Minnesota | 6.875% | Yes | $350 |
| Mississippi | 5% | Yes | $425 |
| Missouri | 4.225% | Yes | $620.79 |
| Montana | None | Check with the state | Check with the state |
| Nebraska | 5.5% | Yes | Check with the state |
| Nevada | 6.85% | Yes | Check with the state |
| New Hampshire | None | Check with the state | Check with the state |
| New Jersey | 6.625% | Yes | No cap |
| New Mexico | 4% | Yes | Check with the state |
| New York | 4% | Yes | $175 |
| North Carolina | 3% | Yes | No cap |
| North Dakota | 5% | Yes | Check with the state |
| Ohio | 5.75% | Partly | Limited |
| Oklahoma | 4.5% | Partly | Check with the state |
| Oregon | None | No | Limited |
| Pennsylvania | 6% | Yes | Limited |
| Rhode Island | 7% | Partly | Check with the state |
| South Carolina | 5% | Yes | No cap |
| South Dakota | 4% | Yes | Check with the state |
| Tennessee | 7% | Yes | Check with the state |
| Texas | 6.25% | Yes | No cap |
| Utah | 4.85% | Yes | No cap |
| Vermont | 6% | Yes | Check with the state |
| Virginia | 4.15% | No | No cap |
| Washington | 7% | Yes | $200 |
| West Virginia | 6% | Yes | Check with the state |
| Wisconsin | 5% | Yes | No cap |
| Wyoming | 4% | Yes | Check with the state |
State rates only. Many states add county or city taxes; each state page explains what applies. Rules change, so confirm with the state before you sign. Not tax or legal advice.