When purchasing a new car, truck, or SUV in California, you should understand the state’s policies on car sales tax. Today, we will break down the basics for you; keep reading to learn more.
- Local governments can collect up to 2.5% in car sales tax, while the state of California itself allocates 1.25% to county governments.
- Be sure to know that in addition to sales taxes, vehicle purchases in California can also put you in the position of managing other fees, like plate fees, title fees, and registration fees.
- Dealers may also request documentation fees. If you want to know more about documentation fees, check out the California DMV’s site – it has all the details you need and more.
- When vehicles are purchased in California, the car sales tax is included before the application of rebates or incentives.
- Many car dealers throughout the state will offer monetary incentives or manufacturing rebates on the sticker price of a car to drive up sales – especially following the outbreak of COVID-19.
To learn more about the California Sales Tax Handbook, check out this website: https://www.salestaxhandbook.com/california/sales-tax-vehicles. You will find all of the details you need to prepare for purchasing!