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Do you pay taxes on a used car?

In most cases, yes, you do pay taxes on a used car. Sales tax is collected on vehicles when they are purchased, regardless of whether they are new or used.

The amount of sales tax you owe will vary depending on the state in which you live and the purchase price of the vehicle. Some states have a flat sales tax rate, while others have a graduated tax rate that increases with the purchase price. In addition to sales tax, you may also be responsible for paying other fees when purchasing a used car, such as title fees and registration fees.

If you are purchasing a used car from a private seller, it is still your responsibility to pay sales tax on the vehicle. You can do this by taking the purchase agreement to your local tax office and submitting a sales tax form.

In some cases, you may be exempt from paying sales tax on a used car. For example, if you are purchasing a used car from a family member or friend, you may be eligible for a family member exemption. You should contact your local tax office to learn about any exemptions for which you may qualify.