WGFA

I think I know the answer but just want to make sure. If I buy a $40,000 truck and have a trade worth $20,000. Do I only pay tax on the outstanding $20,000?? I live in PA... TIA

ntrimm

Not sure in PA, but it works that way in MO. Search the PA department or revenue/motor vehicle website. They should have it listed.

senorp

Arkansas you would pay on the $20,000 difference.

hemigod

In your scenario in PA, you would only pay sales tax on the $20000.00. The trade in amount is deducted from the price the sales tax is calculated on. I know. I live in PA.

WGFA

Thanks for all the replies. Hemigod thanks. I thought thats how it worked just wanted to make sure.

RDFTS

iTrader: (1)

The reason why is the person who buys your trade-in will be paying the other half of the sales tax. Actually more than half because that dealer will be selling your trade for more than they gave you.

I've always thought the sales tax on vehicles is the biggest ripp-off. For the life of that vehicle if it is sold over and over again, the government will continue to collect tax each and every time it is sold. And that's not counting the property tax they want each year when you keep it. :-)

scorpio333

This is correct. Also, you pay the tax rate of the county you live in, not the county you purchase. Here in Allegheny it's 7%, I think all but one other county is 6%. So no matter where I buy I have to pay 7%.

mattd17

that must be nice (for some).... here in Washington, they changed the tax laws not too long ago. When i bought my 11 XLT last October, I had to pay the tax based on the SELLER's location, regardless of where the buyer lives. And, since i was buying from a dealer in a different town, it actually cost me about 500.00 more than if I had purchased from the dealer about a mile from my house..... bummer !!!

hemigod

Yes, if you live in Philadelphia County and Allegheny County you also have the privelege of paying 7% where the rest of the state pays only 6%. It is based on where you live, no getting around it. However, I believe the OP lives just outside the Philadelphia County line.

WGFA

Yea, I live in Delaware County. But originally from "LA" Beaver County. That's right "LA" Quippa! lol...