Navigating Car Sales Tax: Why Your Place of Residence Matters More Than Where You Buy!

February 16th, 2024 by

When you buy a car you pay the sales tax rate based on your place of residence, not where you made the purchase. So, if you reside in a different city or county with its own sales tax rate, you would pay the sales tax rate applicable to your residential location. This is a common practice to ensure that the local area where you live receives the appropriate tax revenue from your vehicle purchase, regardless of where you actually buy the car.

 

Examples:

 

  • You buy a car from Subaru City which is based in the city of Milwaukee but you reside and will keep the car in Greenfield.  You would pay the sales tax for Greenfield which is 5.9%.

 

  • You buy a car from Subaru City which is based in the city of Milwaukee but you reside in Racine county and will keep the car in the city of Mount Pleasant.  You would pay the sales tax for Mount Pleasant which is 5%.

 

  • You buy a car from Subaru City which is based in the city of Milwaukee and you reside in the city of MIlwaukee and will keep the car in the city of Milwaukee then you will pay the Milwaukee city and Milwaukee county tax total of 7.9%.

 

This is true throughout the United States.  The tax on a car purchased is solely based on where the buyer resides and not where the car is purchased.

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