![]() Ohio imposes a 5.75% sales tax on all vehicle sales. Tax information and rates are subject to change, please be sure to verify with your local DMV.įrequently Asked Questions What is the sales tax on a car purchased in Ohio? ![]() This is on top of the federal tax credit of up to $7,500. Ohio currently has no state-specific EV incentives. A vehicle title is transferred from an individual to a partnership.A vehicle title is transferred in an inheritance.A vehicle title is transferred in a divorce.A vehicle title is transferred as a gift.Vehicles are exempt from sales tax in Ohio in the following situations: This is known as a document fee or a "doc fee". The average dealership fee in Ohio is $250, which is also the maximum a dealership can charge in Ohio. Here are common fees for vehicles in Ohio: In other words, the taxable amount is before any incentives or rebates are applied.Īs an example, if you purchase a car for $30,000 and have a dealer incentive for $3,000, the total taxable amount is still $30,000. The state of Ohio does tax rebates and dealer incentives. You will have to pay the 5.75% sales tax on private car sales to the Ohio DMV.Īs an example, if you pay $20,000 for a car in a private sale, then the sales tax would be $1,150. This would bring the total purchase price of your new SUV to $25,000, which is the taxable amount. In other words, when calculating sales tax, be sure to subtract any trade-in amount from the purchase price before multiplying it by the tax rate.įor example, let’s say that you agree to purchase a new SUV for $35,000 and you trade in your old SUV for $10,000. In Ohio, sales tax is not applied to the value of a trade-in. Wayne County has the lowest total tax rate of 7% in Ohio. The 5.75% sales tax also applies to used car sales in Ohio.Ĭuyahoga, Lake, Lorain, Medina, and Summit Counties have the highest total tax rates of 8% in Ohio. Remember that the total amount you pay for a car ( out the door price) not only includes sales tax, but also registration, and dealership fees.ĭo I Have to Pay Sales Tax on a Used Car? 0575 to get $2,587.50, which makes the total purchase price, $45,587.50 ( account for the incentive). The total taxable amount is $45,000 since trade-ins are not taxable, but incentives/rebates are. The trade-in value of your vehicle is $5,000 and you have a $2,000 incentive. Multiply the vehicle price (after trade-in but before incentives) by the sales tax fee.įor example, imagine you are purchasing a vehicle for $50,000 with the state sales tax of 5.75%. To calculate the sales tax on your vehicle, find the total sales tax fee for the city. However, the average total tax rate in Ohio is 7.223%. It's important to note, this does not include any local or county sales tax, which can go up to 2.25%, for a total sales tax rate of 8%. The current sales tax on car sales in Ohio is 5.75%. In this article, we will take a look at the current tax information and associated fees with Ohio car sales. So what is the current sales tax rate and what are the other fees and exemptions? If you are looking to purchase a vehicle in Ohio, then you may have to pay a sales tax.
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