Sales Tax
 

I live in Florida. When I purchase a car, is the sales tax applied where you bought the car or where you live?

My dilema is I live near countyline where tax is 7%. The county right above has a 6%. I'm working with two dealers that have offered the same deal, except the one in my jurisdiction will cost a little over $300 more because of the additional 1% tax. If the tax gets applied where I live then it doesn't matter where I get it. If it's where you buy, then I'm crossing the border.

Thanks in advance for any insight.

Someone from FL can chime in but in almost all states I have lived in it has always been based on the address at which the vehicle is registered.

I bought my car in a tax free state but still had to pay my state sales tax when I registered the car

Typically, an out of state purchase where less or no "sales tax" was collected by a dealer will require you to remit a "use tax" equal to the sales tax you would have owed your resident state if you bought it in state. I believe the same holds true with regard to differing rates within the state, so you will most likely be out of pocket the same amount either way.

However, the FL county surtax is typically only charged on the 1st $5000 of the sale. So if you are buying a car in a 7% county, you will only pay $50 more than if you bought it in a 6% county. For that kind of money, I'd get the car where its most convenient for you.

FL Dept Rev - Florida Tax Information

Illinois tax
 

Gang,

Correct me if I am wrong, but in Illinois to get away from that problem it's 6.5% statewide on the amount due after trade in allowance.
:twocents:

You are correct regarding the trade in allowance. However, I believe the base state rate for IL is 6.25% PLUS any local rates applied by Home Rule jurisdictions. Your IL tax could be as high as 9% depending on where you purchase your goods.

IL Sales Tax Rates

You're correct I forgot about "home rule". But it is up to the that city. For example the local tax rate in my community is 10%. However the "New Car" tax rate here is the lower "State wide" percentage number.

Typically it is where you live

:iagree:

Or else I would have gone to Oregon and bought my car there instead of paying the ridiculous 8.75% here in Orange County (Southern California). If I lived in LA county, I would have paid 9.25%. :ugh2:

ouch. and i thought 6% was bad.