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California Tade-in TAX Credit?

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

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  1. K-MTG

    K-MTG Sunshade Captain of TMC

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    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

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    Unfortunately not. In CA you pay sales tax on the purchase price independant of trade-in.
     
  3. pilotSteve

    pilotSteve Member

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    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

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    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

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    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 Member

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    As another bonus, the state sales tax in California just went down 1/4% on January 1st.
     
  7. BrokerDon

    BrokerDon Member

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    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

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    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.
     

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