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What to know about taxes when you sell a vehicle

Reading Time: 6 minutes Many people are confused about whether they need to pay sales tax when they are selling a vehicle. Thankfully, the solution to this dilemma is pretty simple: You do not need to pay sales tax when you are selling the vehicle.

What car-related tax deductions are available?

Reading Time: 6 minutes Business owners and self-employed workers gain the most in tax savings, but you can also claim vehicle deductions for charity, tag registrations, medical expenses, owning an electric or hybrid vehicle, and many other qualified expenses.

How to qualify for the vehicle sales tax deduction

Reading Time: 6 minutes If you trade in your old car to buy a new car, the sales tax you pay will depend on local and state sales tax rates and whether the taxable sale price is calculated before or after the trade-in allowance was subtracted.

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