Buying a Car

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Topic: Buying a Car

Auto May 6, 2013 at 2:42 pm

Buying a Car

If I buy a car in MD or VA, do I pay MD/VA taxes and DC taxes on it? Is there a tax split? Is one state better than the other to buy a car in?

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I think if you’re a district resident, you only pay DC taxes. But, I’m a district resident, and when I bought a Prius in 2010 from Jim Coleman in Maryland, I didn’t have to pay any taxes! In 2010, and maybe still, DC had a deal that if you bought an efficient car, there was no sales tax. AWESOME.

If I’m correct, you will always pay your the taxes due in your home “state” no matter what… it’s about where you reside, not where the car is purchased. You will either pay the taxes at the dealer or will be charged the difference at the dmv when registering the car.

I second House-.  I live in MD where the sales tax is 6% and you can’t avoid it by buying the car in another state.  What matters is the state where the car will be registered.

Correct. They will charge you the auto sales tax of the state you live in.  

And…if you live in MD and you lease a car, you will pay sales tax on the full price of the car right up front. I was absolutely shocked when I moved here from FL, where you pay a portion of the sales tax every month in your lease payment. When I moved to MD and went to register my car, I got hosed to the tune of $1200.

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