By most standards, taxes on a car are high. in america, you'll be charged anything from 10% to 50% depending on the state where you live and the type of vehicle you purchase.
in total, most owners end up paying about 30 percent in taxes each year. there's also insurance costs to consider which can climb as high as $2,000 annually for your average new car– even with significant discounts – and $1,500 for an average used car. finally there is fuel-economy penalty for gas guzzlers and electric cars who will each lose 240 or 230 miles per gallon respectively compared to a prius c which would only lose 4 mpg running on gasoline alone due to the need for engine compression
how do you calculate sales tax on a car?
sales taxes are calculated similarly to income taxes, so the two formulas are almost identical. the main difference is that instead of the income brackets you have different rates for different types of items. for example, if you're selling a car then depending on which type it is, the tax rate varies greatly. to calculate sales tax on a car start by multiplying its final price or cost by the appropriate rate to find out how much tax was paid up front. then subtract what was paid already from what needs to be paid to find out how much money – if any – needs to be returned.
here's an example for a 2008 honda civic with plate number 1nx-123 appearing in mlive:
how much in taxes do you pay on a car?
for the sake of this question, let's assume you're buying a truck. trucks are classified by their total gross weight in pounds (lbs). usually purchasers are more concerned about vehicle expense rather than sales tax, which will be listed separately on the document. most states impose an excise tax on vehicles with a net purchase price of $40,000 or greater. exceptions to the rule include vehicles that are classified by statute as farm vehicles. these vehicles are exempt from state taxes because they do not exceed 6,000 lbs but can still exceed 6k lbs if their gross weight exceeds 12k lbs and is used solely for purposes related to normal commercial farming practices. once your make line matches your favorite model of truck you'll see