Buying a car out of state is a common practice, but it doesn't mean you can bypass sales tax. In almost every case, you pay sales tax to the state where you the vehicle (your home state), not where you buy it. Where You Pay Sales Tax
If you accidentally pay sales tax in the state of purchase, most states have reciprocity agreements. This allows you to receive a credit for those taxes toward what you owe in your home state. If your home state's rate is higher, you only pay the difference. Differences by Seller Type buying a car out of state sales tax
You are solely responsible for all tax and paperwork. You typically won't pay any tax at the point of sale but will be charged the full amount when you register the car locally. Essential Documentation for the DMV Buying a car out of state is a
You must insure the vehicle before driving it home or registering it. This allows you to receive a credit for
Must show the final purchase price, VIN, and seller info.
Many out-of-state dealers can collect your home state's sales tax at the time of purchase and remit it for you. If they don't, you must pay it directly to your local DMV.
You are generally required to pay the sales tax rate of your home state upon registration. This holds true even if you buy from a state with no sales tax, like Oregon or New Hampshire; your home DMV will collect what you owe when you apply for a title.