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How is sales tax calculated on a used car?
29th April 2011
I want to purchase a used car from a dealership for ,000 in cash, but how much sales tax will I have to pay in addition to the price, in TN by the way. How is it calculated? Tax and tags, …I’m so confused?!
Posted in: Auction FAQ | | Comments (5)
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TN is 9% sales tax so 3000. x .09 = 270. + registration, title and tags. the dealer should give you the total on all charges and break them down for you.
Comment by Daniel R — April 29, 2011 @ 9:05 pm
when you do the registration it usually will say purchase price and then a tax percent. Lets c..in 5th grade they showed how to times that.
Comment by Lost on planet earth — April 29, 2011 @ 9:05 pm
Same as a new car
Comment by mark k — April 29, 2011 @ 9:05 pm
Sales tax is sales tax. It’s the same percent for a car as you pay at WalMart.
Assume 10% of the price of the car for taxes, tags and dealer fees.
Comment by mccoyblues — April 29, 2011 @ 9:05 pm
Dealer collects tax & title fee.
You buy the tag on your own.
$3000 x the sales tax rate + title fee. (They may try and charge you a "DOC FEE". Don’t pay it, its just extra profit for the dealer)
If you are willing to walk away, they will usually reduce the sales price by the amount of the doc fee. (They wont scratch off the doc fee usually)
Comment by N — April 29, 2011 @ 9:05 pm