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Rules on State TAX for pre-owned vehicle out-of-state

G2019

Member
Apr 16, 2019
140
16
Austin
Hi, I'm hearing mixed info that if you buy a pre-owned vehicle from an out-of-state private party sales, there are ways to avoid paying or reducing tax..... For example, if someone buys a pre-owned car from Florida and bring it to Texas (a new home for that car), how does that work?

Any and all tips or suggestions welcome... Thanks much for your help, in advance!
 

HankLloydRight

No Roads
Jan 18, 2014
12,993
11,031
Connecticut
You're asking people to advise you on tax evasion/tax fraud, so I'd guess you might not get the replies you're asking for.

You pay $x for a car in Florida. $x is on the bill of sale. You take that bill of sale and register the car in Texas and pay sales tax on $x. That's the legal way.
 

G2019

Member
Apr 16, 2019
140
16
Austin
You're asking people to advise you on tax evasion/tax fraud, so I'd guess you might not get the replies you're asking for.

You pay $x for a car in Florida. $x is on the bill of sale. You take that bill of sale and register the car in Texas and pay sales tax on $x. That's the legal way.
Thank you.. that's exactly what I was looking for.. I didn't know if I had to pay tax in FL (where the car is currently) or back in home state!
 

HankLloydRight

No Roads
Jan 18, 2014
12,993
11,031
Connecticut
Oh, ok.

For used car private sales in most (all?) states, there's no government body to collect sales tax on the transaction. And even if there was, you'd likely be able to get a credit in your home state.

In most states, sales tax for used cars is collected when the car is registered in the home state.

New cars sales, and used car sales from dealers is different, especially in California.
 
  • Informative
Reactions: UnicornDriver

Triplett

Banned
Apr 3, 2019
380
368
California
Every state law is different. In California, you buy a used car out of state and you pay the use tax. It's tax fraud if you try and avoid it.

On top of that, the CHP has set up a Narc line for you to call and report out of state plates, as the Montana scam is very popular around here.
 

ArizonaP85

Member
Apr 6, 2017
265
430
Phoenix
Move to sunny Arizona! Never any sales tax on any private party car sales. Every state is different so pays to check your state’s specific rules.
 

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