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3/27/2024 9:31 AM  #1


Buying a Car Out of State (Texas)

Does anyone know anyone in car sales that can help me understand taxes when buying a car out of state?  I'm finally getting around to buying a bigger truck so I can haul my mustang on trips.  The dealer says I need to pay AZ tax rate of 8.6% but Texas has a maximum of 8.25% and they are supposed to pay back to the state I'm registering it in.  Very confused.

Please DM me if you know someone or can speak to how out of state car sales work.

 

3/27/2024 12:59 PM  #2


Re: Buying a Car Out of State (Texas)

I am in Tx.
If I buy a car out of state from an individual, I pay them the sales price, but not any tax, then bring the vehicle with bill of sale and any other paperwork to Tx DMV to transfer the title. The state of Tx charges a 6.25% sales tax on vehicles.  The tax only gets paid to the state where the vehicle gets titled.

If buying from a registered dealer, hopefully they can advise how it will be handled.


Money you enjoy wasting is NOT wasted money... unless your wife finds out.
 

3/27/2024 3:40 PM  #3


Re: Buying a Car Out of State (Texas)

I just bought a vehicle from out of state, I have not transfered the title yet, but in addition to what MS said I think they now have a minimum amount to pay tax on. I guess they got tired of people saying they paid $1.00 for everything

 

3/27/2024 4:23 PM  #4


Re: Buying a Car Out of State (Texas)

My stepson just bought a car from Enterprise Car Sales here in Knoxville, TN.  He lives in O'Fallon MO but he is visiting us here until May.  The dealer here did his paperwork and it was all done for MO.  The dealer didn't know the tax rate for MO but called MO to get the proper rate.  Bottom line, All state paperwork he did was for MO except for the temporary tag.  That is TN.  He said the MO tag should arrive to their office here in Knoxville in the next 2 weeks.

I don't see why the AZ dealer isn't doing the same thing for you.
 


1968 T-code Coupe with a 302.  Nice car, no show stopper for sure, but I like it.
 

3/27/2024 4:43 PM  #5


Re: Buying a Car Out of State (Texas)

One of the many benefits of living in DE where this type of tax simply doesn't exist.  I bought my FJ Cruiser in VA and it took me almost an hour to prove to the dealer that there was no tax in DE.  It was a weekend and the DMV was closed so they couldn't call to ask. 

A lot of States now go by blue book value from what I hear. 
 

 

3/27/2024 6:58 PM  #6


Re: Buying a Car Out of State (Texas)

TremendousWand wrote:

Does anyone know anyone in car sales that can help me understand taxes when buying a car out of state?  I'm finally getting around to buying a bigger truck so I can haul my mustang on trips.  The dealer says I need to pay AZ tax rate of 8.6% but Texas has a maximum of 8.25% and they are supposed to pay back to the state I'm registering it in.  Very confused.

Please DM me if you know someone or can speak to how out of state car sales work.

 
I've got a buddy who has car dealerships, he said let him know if it was new or used, which state you're buying it in, and which state you're going to register it in, and he'll have his DMV gal get the info.


Bob. 69 Mach 1, 393W, SMOD Toploader, Armstrong  steering, factory AC.
 

3/28/2024 6:30 AM  #7


Re: Buying a Car Out of State (Texas)

I bought a used '15 Mustang from a dealership in CA. He said that he had to charge me sales tax unless I loaded it on a trailer and hauled it out of state. I paid the tax and drove it away. When I registered in TX I got a refund of the difference between the higher CA tax and the lower TX tax.

 

4/01/2024 9:07 AM  #8


Re: Buying a Car Out of State (Texas)

Didn't buy this truck but....

If you go get the vehicle in the state they will take the taxes for your state and maybe their county taxes.  Texas will then credit you as having paid taxes.  Arizona has a higher rate than Texas and the DMV said they don't give back the difference.

If you get it delivered, then you pay your own taxes back in your state when you register it.

     Thread Starter
 

Board footera


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