Car Sales Tax in California
In California, the average state and county combined sales tax on car purchases is 8.618%.
Written by Melanie Johnson
Reviewed by Jessica Barrett
A state tax rate of 7.25% applies to all car sales in California, but your total tax rate will depend on county and local taxes, which may add up to an additional 3.5%. The average total car sales tax in California is 9.133%.
When you buy a car, you have to consider more than just the big-ticket price. One of the most important additional costs to consider is sales tax, which varies depending on the state, county, and city where you purchase a car.
California has one of the highest car sales tax rates in the country—but understanding and calculating sales tax can be confusing. That’s why
car insurance
broker app Jerry
has made a useful guide to car sales tax in California.Read on to learn more—and to find out how Jerry's
trusted insurance comparison app
could help you lower your California car insurance costs
.Make auto loan refinancing easy with PriceProtect™
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversHow much is the car sales tax rate in California?
California has the third-highest car statewide sales tax at 7.25%. This rate applies to all vehicles purchased—no matter whether you buy new or used. You’ll also need to factor in the county and local sales tax, which will be added to the base 7.25%.
The highest sales tax for car purchases in California is in
Alameda County
and Contra Costa County, where car buyers must pay a combined 10.25% sales tax. Meanwhile, the California counties with the lowest sales tax rate are Alpine
, Modoc, and Lassen—all with a combined rate of 7.25%. The average across the state is 8.618%.MORE: Car loan in California 2022
How are car trade-ins taxed in California?
When you purchase a new car, most dealerships will allow you to
trade in your old car
for a credit toward your purchase. In California, sales tax applies to the full price of the vehicle, regardless of trade-ins. What does that mean? Well, let’s look at an example.
Let’s say you’re buying a
Honda Civic
worth $22,350 in Los Angeles
, and you’re trading in your old Honda CR-V
for a $10,000 credit. You’ll have to pay Los Angeles County’s 9.5% combined state and local sales tax on the full $22,350 purchase. Dealer rebates and incentives are also not exempt from sales tax. The taxable price of your vehicle is the price before incentives—so if you’re getting a rebate or discount, you’ll still have to pay sales tax on the full price of the car.
How to calculate sales tax on a car in California
You can estimate your area’s total car sales tax by visiting the California Department of Motor Vehicles (CA DMV) website and using the
vehicle registration fee calculator
. Key Takeaway Combine California’s sales tax rate of 7.25% with your specific county and city’s tax rate to get the total sales tax in your area.
Exemptions from California car sales tax
There are quite a few exceptions to the California car sales tax policy. Some exemptions include:
- Out-of-state purchases brought into CA
- Inheritance and family transfers
- Leased vehicles
- Vehicles purchased out of state by a member of the armed services while on active duty
- Vehicles to be used by the American National Red Cross
A full breakdown of transactions not subject to tax is available in the CA DMV’s
Vehicle Industry Registration Procedures Manual
. How to estimate California tax, title, and registration fees
Sales tax isn’t the only additional cost to consider when purchasing a car in California.
You’ll also need to be mindful of title and registration fees, documentation fees charged by most dealerships, as well as the cost to transfer your license plates.
Here’s how the additional costs break down in California:
Cost | Average cost |
|---|---|
Sales tax | 8.618% |
Registration fee | $64 |
Title fee | $23 |
Plate transfer | $23 |
Documentation fee | Up to $85 |
Make auto loan refinancing easy with PriceProtect™
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversRegistration costs will vary. You can calculate your exact fees using the DMV’s
registration fee calculator
and new vehicle fee calculator
.MORE: Is car insurance tax deductible?
How to find affordable car insurance in California
You did it! You purchased your brand new (or new to you) ride. After you’ve paid all of the applicable fees, there’s still one major thing left to consider: insuring your purchase with California car insurance. The
Jerry
app can help you find the best rate! Once you download Jerry, just answer a handful of questions that will take you roughly 45 seconds to complete, and you’ll immediately get car insurance quotes for coverage similar to your current plan. Jerry users save an average of $887 per year on car insurance!
“Jerryquoted me a price that saved me almost $4,000 a year in California! I definitely recommend Jerry.” —Patricia B.
Compare quotes from 50+ insurers with Jerry in under 45 seconds?
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversFAQ
How much is sales tax on a used car in California?
The sales tax on a car in California is the same whether you buy it new or used. The total tax will include the statewide base rate of 7.25% plus your local or county tax rate.
Reduce your monthly car payments in minutes?
Find out if Jerry can reduce your payments by an average of $150/month
4.7You might also be interested
.webp&w=64&q=75)
