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buying a car-sales tax

We're thinking of buying a new car.  DH said we should look for a dealer in a city with a lower tax rate.  Does anyone know how sales tax is figured?  Is it based on where you buy the car?  Where you live?  Is there any benefit to buying in KY or IN vs Ohio?  Even a half percent lower sales tax could save us $1000!
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Re: buying a car-sales tax

  • I think it is based on the city you live in.  I bought my car where I live now and at the time I lived in Hamilton County.  I think it was calculated on the Hamilton County tax rate.  I will check my car in a sec and see.
  • It doesn't matter where you buy a car, what matters is your municipality's rate. 

    If you pay 5.5% tax on your car and your city/town's rate is 6%, when you register the vehicle you will be asked to pay the .5%.

    Save yourself some time and trouble at the DMV and pay your local tax rate...

     

  • Well poo!  Too bad it doesn't work like buying a pair of shoes at the mall.
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  • imagedpittis39:

    It doesn't matter where you buy a car, what matters is your municipality's rate. 

    If you pay 5.5% tax on your car and your city/town's rate is 6%, when you register the vehicle you will be asked to pay the .5%.

    Save yourself some time and trouble at the DMV and pay your local tax rate...

     

    This is exactly right. If you dont pay it to the dealer, you will pay it when you register the car.

  • We got our new car in Dec and were able to use the sales tax as a deduction.  I am not sure if you can still do this in 2010 but it sure would help if you could.
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  • imagerottie06:
    We got our new car in Dec and were able to use the sales tax as a deduction.  I am not sure if you can still do this in 2010 but it sure would help if you could.

    Same thing with me except mine was bought in August.

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