This fee covers the cost of the dealership preparing legal and sales documents for your sale. Here are some charges you can expect from the Pennsylvania DMV.Īlong with state-related fees, dealerships can also charge you a documentation fee. PA DMV/State FeesĮvery state’s DMV has different fees associated with purchasing a new car. Here are a few of the other fees and taxes that you will have to pay before you can drive that new car off the lot. There are no taxes on rebates or dealer incentives in Pennsylvania.įor example, if you are purchasing a car at $40,000 that offers a $2,500 rebate, you will only be taxed on the $37,500 that you actually pay for the car. The car sales tax on private vehicle sales in the state of Pennsylvania is 6%. Car Sales Tax on Private Sales in Pennsylvania There is no car sales tax charged for trade-ins in the state of Pennsylvania.įor example, if you purchase a car that costs $40,000 and your trade-in is valued at $7,000, you will only pay the 6% sales tax on the $33,000 price tag. Car Sales Tax for Trade-Ins in Pennsylvania The lowest city tax is any city outside of Philadelphia or Allegheny county, as those are the only two places in Pennsylvania that charge an additional tax. Philadelphia requires people buying cars to pay an additional 2% sales tax on top of the state’s 6% one, meaning if you register your car in Philadelphia, you will be paying a total of 8% sales tax on that new car. The highest city tax is in Philadelphia, the largest city in the state. Which City Has the Highest Tax? Which City Has the Lowest?Īlong with state taxes that are imposed statewide throughout Pennsylvania, some cities and counties within the state require new owners of a vehicle to pay an additional city or county tax. In Pennsylvania, you will have to pay the same 6% sales tax for both used and new vehicles. 06 Sales Tax = $1,140ĭo I Have to Pay Sales Tax on a Used Car? Calculate Sales Tax in Pennsylvania Example: Once you have that number, multiply it by 6% to get the cost of the state sales tax on your new vehicle. Then, deduct the value of any trade-ins or rebates you have (note that Pennsylvania does not tax you on rebates). Use this simple formula to calculate how much you need to expect to pay in state sales tax on your car.įirst, take the purchase price for your vehicle. How to Calculate Pennsylvania Sales Tax on a Car The most you can expect to pay in local taxes is an additional 2%, but Pennsylvania's average local sales tax is 0.166%. That’s not including any city or county taxes that could be added on top of that number. The car sales tax in Pennsylvania is 6% of the purchase price or the current market value of the vehicle (according to the PennDOT facts sheet).įor instance, if your new car costs you $25,000, you can expect to pay an additional $1,500 in state sales tax alone. How Much Is the Car Sales Tax in Pennsylvania? When Sales Tax Is Exempt in Pennsylvania.Car Sales Tax on Private Sales in Pennsylvania.Car Sales Tax for Trade-Ins in Pennsylvania.Which City Has the Highest Tax? Which City Has the Lowest?.Do I Have to Pay Sales Tax on a Used Car?.Calculate Sales Tax in Pennsylvania Example:.How to Calculate Pennsylvania Sales Tax on a Car.How Much Is the Car Sales Tax in Pennsylvania?.
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