# California — Vehicle trade-in sales tax credit rules by state -- full price taxed, or only the difference

For California, trade-in credit allowed is no credit; statute or regulation citation is Regulation 1654(b)(1), recorded from its source on 2026-08-19.

- **State:** California _(our reading, not quoted from the source)_
- **Trade-in credit allowed:** no credit _(our reading, not quoted from the source)_
- **Statute or regulation citation:** Regulation 1654(b)(1) _(verified: appears in the quote below)_

## What the source says

> When a used automobile is traded in on the purchase price of a new automobile, the dealer accepting the trade-in must include in the measure of tax the amount agreed upon between the seller and the buyer as the allowance for the automobile traded in. (Regulation 1654(b)(1).)

## Source

- https://cdtfa.ca.gov/lawguides/vol2/suta/140-0500.html

Last verified: 2026-08-19. Review by: 2027-08-19.
Part of [Vehicle trade-in sales tax credit rules by state -- full price taxed, or only the difference](https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/).