Do you have to pay sales tax when purchasing a used car from relative?

Whether you have to pay sales tax on a used car purchased from a relative depends on the laws and regulations in your specific location. In some jurisdictions, sales tax is not charged on private transactions between individuals, including family members. However, other states and counties require the payment of sales tax regardless of the relationship between the buyer and seller.

It's important to note that even if sales tax is not explicitly stated as being due on the purchase of a used car from a relative, it may still be required by law. To ensure compliance with tax regulations, it's recommended to check with your local tax authority or revenue department for guidance. They can provide specific information on the tax obligations and exemptions related to purchasing a used car from a relative in your particular location.

Be aware that failing to pay applicable sales tax can lead to legal consequences, including penalties and interest. If you have any doubts about your tax responsibilities, it's advisable to consult with a tax advisor or professional who can provide personalized guidance based on your situation and the laws in your jurisdiction.