Understanding sales tax reciprocity when buying a vehicle can save you money. This guide provides a state-by-state overview, focusing on key considerations. Remember to always verify information with official state sources before making a purchase.
Alabama: Alabama generally doesn’t reciprocate sales tax. Expect to pay Alabama sales tax on a vehicle purchased in Alabama, regardless of your residency.
Alaska: Alaska has no sales tax, so reciprocity isn’t an issue.
Arizona: Arizona doesn’t have sales tax reciprocity with most states. If you live in Arizona and buy a vehicle out of state, you’ll likely owe Arizona sales tax.
Arkansas: Arkansas generally doesn’t offer sales tax reciprocity. Pay attention to Arkansas’s specific rules regarding vehicle purchases from other states.
California: California doesn’t have broad sales tax reciprocity. Residents buying out-of-state vehicles often owe California sales tax.
Colorado: Colorado’s sales tax rules on vehicle purchases from other states are complex. Consult the Colorado Department of Revenue for precise guidance.
Connecticut: Connecticut doesn’t generally reciprocate sales tax. Out-of-state purchases may lead to Connecticut sales tax liability.
Delaware: Delaware’s lack of sales tax simplifies this: you won’t pay sales tax on vehicle purchases in Delaware, regardless of residency.
Florida: Florida generally doesn’t reciprocate sales tax. Expect to pay Florida sales tax on vehicles bought in Florida, even if you reside elsewhere.
Georgia: Georgia’s reciprocity rules vary. Check the Georgia Department of Revenue website for up-to-date information.
Hawaii: Hawaii’s sales tax rules regarding vehicle purchases are specific. Research carefully before buying a vehicle.
Note: This guide provides a simplified overview. Always confirm details with the relevant state’s Department of Revenue.
For a complete guide, consult individual state Department of Revenue websites. This information is for guidance only and is not legal advice.
