If you purchase a used car from a private party in California and drive it home to Nevada, you will need to pay sales tax in California at the time of purchase. However, you will be given a credit for any sales tax you pay in California and then later, when you register the vehicle in Nevada.
*To do this, you must provide the DMV with proof that you paid the following in California:*
* Sales tax certificate showing the full purchase price of the vehicle.
* Vehicle Registration application
Nevada
If you purchase a used car from a private party in Arizona and drive it home to California, you will need to pay use tax in California at the time of registration. The use tax is based on the purchase price of the vehicle, and it is the same rate as the sales tax in California.
*To calculate the use tax, you will need the following:*
* Purchase price of the vehicle
* Sales tax rate in California
* Use tax rate in Arizona
Example:
If you purchase a used car in Arizona for $10,000 and the sales tax rate in California is 7.5%, the use tax you will owe in California is:
* Purchase price of the vehicle: $10,000
* Sales tax rate in California: 7.5%
* Use tax you owe: $10,000 x 0.075 = $750
You can contact your DMV for more information on the sales and use tax laws in your state.
