TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC

California Tade-in TAX Credit?

Discussion in 'Model S' started by K-MTG, Jan 14, 2017.

Tags:
  1. K-MTG

    K-MTG Sunshade Captain of TMC

    Joined:
    Oct 24, 2015
    Messages:
    4,698
    Location:
    Irvine, CA
    Does California offer the trade-in tax deduction? So if I were to trade in my ELR for $30K and my S was $100K. I would only pay taxes on the $70K?
     
  2. msnow

    msnow Active Member

    Joined:
    Jul 14, 2015
    Messages:
    4,970
    Location:
    SoCal
    Unfortunately not. In CA you pay sales tax on the purchase price independant of trade-in.
     
  3. pilotSteve

    pilotSteve Active Member

    Joined:
    Jul 14, 2012
    Messages:
    1,067
    Location:
    Vancouver WA
    Wow, in other states (WA) if you trade thru a "auto dealer" (which Tesla is) you only pay sales tax on the difference.

    Found this from google: California, Hawaii, Kentucky, Maryland, Montana or Washington, D.C., you'll pay sales tax on the full price of the new vehicle, regardless of your trade-in allowance. Michigan changed its law in 2013 to exempt the first $2,000 of a trade-in from sales tax. The exemption will grow by $500 per year until it reaches $14,000.
     
  4. Nosken

    Nosken Member

    Joined:
    Jan 15, 2015
    Messages:
    552
    Location:
    Lincoln, CA
    Yes, in Taxifornia they get over 8% sales tax every time the car gets sold. If it's new, it's on the full value, and every time after that it's based on the "sales price"
     
  5. K-MTG

    K-MTG Sunshade Captain of TMC

    Joined:
    Oct 24, 2015
    Messages:
    4,698
    Location:
    Irvine, CA
    Thinking about placing my order today, if I order today will I get the free supercharging? Also, I have 7-days to cancel for a refund?
     
  6. Uncle Paul

    Uncle Paul Active Member

    Joined:
    Nov 1, 2013
    Messages:
    1,448
    Location:
    Canyon Lake,CA
    As another bonus, the state sales tax in California just went down 1/4% on January 1st.
     
  7. BrokerDon

    BrokerDon Member

    Joined:
    Aug 23, 2014
    Messages:
    672
    Location:
    Newport Coast, CA
    Be aware that sales tax rate varies depending on the city / county you take delivery in. We live in Orange County and took delivery at the Costa Mesa delivery center which saved us a bunch of money on our Aug 2015 delivery inventory 2015 P85D vs. delivery at the Tesla factory or L.A. County.
     
    • Informative x 1
    • Disagree x 1
  8. ucmndd

    ucmndd Member

    Joined:
    Mar 10, 2016
    Messages:
    829
    Location:
    California
    To my knowledge this isn't true, never has been for any of the many cars I've purchased in CA, including the MS I picked up at the factory last month.

    Sales/use tax for a car purchase in CA is based on the zip code where the car is registered, not where it's sold/delivered.
     

Share This Page

  • About Us

    Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.
  • Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


    SUPPORT TMC