Sales tax increases the price of a used car considerably, so it makes sense that drivers often ask how to avoid paying sales tax on a used car. In most cases, car buyers are required by law to pay sales tax, but there are a few exceptions depending on the driver, location, and the car. Below, you can learn more about sales tax on used cars, and the situations in which it is not required, below. Then learn more about financing your next car near Louisville online!
There are a few states that don’t charge sales tax on used cars as of 2025:
If you live in one of the states listed above, and plan to register your car in that state, you won’t have to pay sales tax. That being said, simply buying a car in a state that doesn’t charge sales tax won’t get you out of paying sales tax. If you’re planning to relocate to a state with no sales tax on used cars, you can register your car in your new state of residency if you buy it within 90 days of moving.
In some cases, used car sales tax exemptions are granted even if a person lives in a state that requires over 7% sales tax, such as California or Nevada. Legal sales tax exemptions have been made for a number of cases:
If you do qualify for an exemption, make sure your exemption certificate is clearly displayed on your vehicle!
At Paul Miller Motor Company, you’ll find competitively priced and high-quality pre-owned vehicles in the Georgetown area. We know that buying a car is a major financial step, so we do everything we can to keep our costs fair and reasonable. That’s why we also offer ever-changing pre-owned vehicle specials to help our Richmond customers afford their next vehicle more easily. Don’t hesitate to contact us online or call us at 859-963-2674 to discuss your options—you might just learn how to avoid paying sales tax on a used car!
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