There is no state sales tax in Delaware—but before you cross state lines to save money on buying a car, note that the car must be registered in Delaware to skip the sales tax.
Delaware does not charge sales tax on car purchases, but it requires a documentation fee of 4.25% based on a vehicle’s NADA book value.
Buyers must register their new vehicle in Delaware to avoid paying sales tax.
Delaware car sales tax rate
Delaware is one of a few states that has no state sales tax. Other states with no car sales tax include:
Alaska
Iowa
Maryland
Montana
New Hampshire
New Mexico
North Carolina
Oregon
South Dakota
Of the three counties in Delaware, the only one that has a local sales tax is Sussex County, at a rate of 6%.
Delaware does charge a documentation fee of 4.25 % on all motor vehicle sales. This is based on the purchase price or the
You will only pay the 4.25% documentation fee on $30,000 of your new car’s value
Keep in mind: If the dealership is offering any incentives or rebates, those generally aren’t deducted from the price of the car when it comes to determining your document fee.
How to calculate sales tax on a car in Delaware
There’s no sales tax or use tax to calculate, so you don’t need to sweat this aspect of your new car purchase.
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