Pennsylvania Car Sales Tax
Pennsylvania car sales tax is 6%, but that's not the only fee you need to worry about when buying a car. Learn how to estimate costs here.
Written by Sarah Gray
Reviewed by Jessica Barrett
Pennsylvania
charges a flat rate of 6% sales tax on most vehicle purchases
in the state. Residents in Allegheny County, though, pay 7% tax, and those in the city Philadelphia pay the highest rate at 8%.Pennsylvania simplifies taxation on vehicle purchases by charging a flat rate across the state with only two exceptions. However, there are other fees associated with vehicle purchases that buyers should be aware of as well.
That’s why we've compiled a guide to car sales tax in Pennsylvania just for you.
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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 Pennsylvania?
The average sales tax rate on cars purchased in Pennsylvania is 6%.
Residents in Allegheny County must pay an additional 1% for a total of 7% sales tax, while those living in Philadelphia are charged 8%.
MORE: Pennsylvania gas tax
How are car trade-ins taxed in Pennsylvania?
While sales tax applies to all car purchases in Pennsylvania, it does not apply to the value of any vehicle you might
trade in
. Instead, trade-in credit is deducted from the taxable price of the vehicle you’re purchasing.So, let’s imagine you’re buying a new
Ford F150
in Mohrsville
for $39,000, and the trade-in value of your old Dodge Ram
is $3,600. You’ll only pay 6% Berks County vehicle sales tax on $35,400 of your new truck purchase.Though many states calculate taxes on the sales price before any dealer incentives or credits are applied, it’s just the opposite in Pennsylvania—sales taxes are calculated on the purchase price after rebates or incentives are applied to the price. That means that if the above new vehicle scenario also included a cash rebate of $1,000, you’d only be taxed on $34,400 of your new truck’s sales price.
How to calculate sales tax on a car in Pennsylvania
Tax-rates.org
makes calculating taxes on your new vehicle purchase easy, no matter where you live. Just plug in your car dealership’s zip code and the purchase price of your vehicle (minus any trade-in credit, of course) and you’ll get a complete sales-tax estimate in seconds.Key Takeaway You’ll pay a flat rate of 6% sales tax on vehicles purchased in Pennsylvania, unless you live in Allegheny County or Philadelphia.
Exemptions from Pennsylvania car sales tax
In general, all sales of motor vehicles in Pennsylvania are subject to sales tax—however, there are a few exceptions. If you
gift a vehicle
to another person, and no money changes hands, no taxes will be assessed on the transfer of ownership from you to the other person.How to estimate Pennsylvania tax, title, and registration fees
Sales tax is just one of the additional costs you’ll pay when you buy a new vehicle in Pennsylvania. In addition, you’ll need to budget for title, registration, plate transfer, and documentation fees.
Here’s a rundown of the additional costs associated with buying a car in Pennsylvania:
Cost | Average cost |
|---|---|
Sales tax | 6% |
Registration fee | $39 |
Title fee | $58 |
Plate transfer | $9 |
Documentation fee | Up to $118 for manual processing and $141 for online processing |
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversTo estimate taxes and fees in Allegheny County or Philadelphia, add 1% to 2%, respectively.
How to find affordable car insurance in Pennsylvania
Calculating your vehicle sales tax in Pennsylvania is pretty easy, and finding affordable
car insurance
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FAQ
How much is sales tax on a used car in Pennsylvania?
The vehicle sales tax in Pennsylvania is usually 6%. However, if you live in Allegheny County you’ll pay 7% and Philadelphia residents will pay 8%.
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