A state tax rate of 4% applies to all car sales in New York, but your total tax rate will depend on county and local taxes, which can be up to 4.5%. The average total car sales tax in New York is 7.915%.
If you’re shopping for cars, you’re probably focused on that big sticker price—but it’s important to keep additional costs in mind. One of the most important additional costs in car purchases is sales tax, but it varies depending on where you buy your car.
New York has some of the highest car sales tax rates in the country, but to know how much you’ll actually pay, you need to pin down the exact rate in your corner of the Empire State. Luckily, car insurance super app Jerry has compiled a guide to car sales tax in New York. Let’s take a closer look at the numbers.
How much is the car sales tax rate in New York?
New York’s statewide sales tax is 4%. That rate applies to all car purchases, whether you’re buying new or used. However, you’ll also need to pay county or local sales tax on top of that base 4%.
The highest sales tax rate for car purchases is—unsurprisingly—in New York City, where car buyers are subject to an 8.88% sales tax. But if you’re outside the Big Apple, you can expect to pay a lower rate, averaging around 7.915%. The New York counties with the lowest sales tax are Saratoga, Warren, and Washington Counties, all with a combined sales tax rate of 7%.
How are car trade-ins taxed in New York?
But what, exactly, does sales tax apply to in New York? When you buy a car, most dealers will allow you to trade in an old vehicle and apply the credit to your new car purchase. In New York state, car sales tax doesn’t apply to trade-in value, which saves you money.
Let’s say you’re buying a Honda CR-V worth $27,000 in Massena, and you’re trading in your old Toyota Avalon for a $2,500 credit. You’ll only have to pay St. Lawrence County’s 8% combined state and local sales tax on $24,500 of the purchase.
However, be aware that dealer rebates and incentives won’t be exempt from sales tax—that is, the taxable price of your vehicle is the price before dealer incentives. If you’re getting a rebate, you’ll still pay sales tax as though you were paying full price for the car.
How to calculate sales tax on a car in New York
Calculating the total car sales tax in your area is easy, thanks to the New York State Department of Taxation and Finance. Their online tax calculator tool can help you estimate the sales tax rate that will apply to your car purchase based on the dealership’s address.
Key TakeawayCombine the statewide sales tax of 4% with your local or county sales tax to get the total car sales tax in your area.
Exemptions from New York car sales tax
In general, all car purchases in New York State are subject to sales tax—but there are a few cases where you can apply for an exemption. You can fill out the New York DMV’s Form DTF-803 for a car sales tax exemption if:
- You were not a resident of New York State at the time of the purchase
- You acquired (but didn’t buy) the vehicle from an estate settlement
- You are an active-duty military member and purchased the vehicle while out of state
- The vehicle will be primarily used in farm work
To find out whether you’re eligible for an exemption and for detailed instructions on car sales tax, check out the DMV website.
How to estimate New York tax, title, and registration fees
Sales tax isn’t the only additional cost you’ll need to keep in mind when buying a car in New York. You’ll also need to factor in title and registration fees, along with the cost to transfer your license plates and the documentation fee charged by most dealerships.
Here’s how all the additional costs associated with car purchases in New York break down:
| Fee | Average cost |
|---|---|
| Sales tax | 7.915% |
| Registration fee | $32.50 to $140 |
| Title fee | $50 |
| Plate transfer | $10 |
| Documentation fee | $75 |
You can calculate your exact registration fee using the DMV’s online calculator.
How to find affordable car insurance in New York
Once you’ve processed all the other payments and fees, there’s still one major expense left: purchasing New York State car insurance for your new ride! New York is notorious for high car insurance rates, but you can find the lowest rates using the Jerry app.
Using Jerry is simple—no complicated math, no long wait times, no unexpected phone calls. Just download the app, enter your information, and sit back while Jerry searches for personalized quotes from 50+ top insurance companies. Jerry users save an average of $887 a year on car insurance!
FAQ
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How much is sales tax on a used car in New York?
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Licensed Insurance Agent
R.E. Fulton is an expert insurance writer specializing in car ownership topics from car shopping and loan advice to insurance and repair guides. R.E.’s mission is to create unique and accessible content that helps readers to become more successful and independent car owners. R.E. has written and edited over 900 high-performing articles for Jerry, with an average of 1 million+ views. As a senior writer on Jerry’s editorial team, R.E. draws on over 10 years of experience as a professional writer and digital publishing specialist. Prior to joining Jerry’s editorial team in 2021, R.E. worked as a writing coach at Columbia University, the Rochester Institute of Technology (RIT), and the University of Rochester. They serve as a managing editor for peer-reviewed history publication Nursing Clio, where their work has appeared regularly since 2015.
Melanie Mergen is an insurance writer with more than 8 years of writing, research, and editing experience. She’s covered topics like car insurance, home insurance, finance, and car ownership for Jerry. Her mission in doing so is to help people secure and protect their most important assets while making the best possible use of their finances.
Prior to joining forces with Jerry, Melanie worked as a freelance content writer and editor, a teaching artist, and journalist. She received her Creative Writing MFA from Columbia University.
