![]() ![]() The state does not include the manufacturer's rebate. In this scenario, Florida will collect six percent sales tax on $31,000, which is the advertised price of $40,000 minus the $1000 dealer incentive and $8000 trade-in allowance. Ultimately, you pay $28,000 for the car, saving $12,000 off the original price. However, let's say there is also a manufacturer's rebate of $3000, $1000 dealer incentive, and a trade-in allowance of $8000. Let's say the car you want is advertised for the full purchase price of $40,000. ![]() Here's an example to help you understand how to calculate sales tax in a situation like that. However, what if you received other incentives from the dealership, as is often the case? That's the simplest example of how you could calculate the sales tax. For example, if you are a Florida resident and are buying a car with a purchase price of $18,000, your sales tax is $1080 ($18,000 x 0.06). However, the state doesn't subtract manufacturer discounts, so while these will reduce the price you pay the dealership, it won't help to lower the amount of sales tax you pay.Īccording to The Nest, to calculate the sales tax, you will need to multiply the price you paid for the car by the current sales tax rate. This means that the sales tax is calculated off the full purchase price minus those discounts. When calculating sales tax, Florida subtracts dealer discounts and trade-in allowances from car's purchase price. How to Calculate Your Florida Car Sales TaxĬhances are when you bought your car from the dealer, you were given incentives or discounts, manufacturers' rebates, and other discounts like trade-in allowances. The staff at the tax collector's office can offer you feedback and make sure that you have paid the correct amount. That said, if you buy a car from someone privately, you are responsible for paying the sales tax.Īccording to It Still Runs, the Florida Department of Highway Safety and Motor Vehicles recommends that when you purchase a car from a private owner, you complete the transaction at the tax collector's office. According to, buyers are required to register and collect vehicles on every vehicle they sell. What Is Florida's Sales Tax for Cars?įlorida collects a six percent sales tax on the purchase of all new or used vehicles. Regardless of whether you purchased a new or used car, you'll need to calculate the amount that of money that will go to the Florida Department of Revenue and county tax collector to know the total cost of the vehicle. The amount of taxes you pay, however, depends on which county you live in, whether you purchased the car out of state, and whether you're trading in a car for the new one. When you purchase a car in Florida, a Florida car tax is imposed on the purchase price of the car. ![]()
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