{ "name": "Vehicle trade-in sales tax credit rules by state -- full price taxed, or only the difference", "description": "When you trade a car in, does the state charge sales tax on the full price of the new car, or only on the price left after the trade-in is deducted? On a $40,000 car with a $15,000 trade-in, that choice is about $900 in a 6% state. This covers 47 states, each taken from that state's own Department of Revenue, DMV or statute, with the sentence that states the rule quoted on every record. Most states deduct the trade-in in full. Four charge tax on the whole price: California, Virginia, Oklahoma and Oregon. Four allow the deduction only in part, and these are the ones commonly reported wrongly -- Michigan caps it in dollars, Ohio allows it on new vehicles but not used, Georgia allows it on dealer sales but not private-party sales, and Rhode Island allows it on passenger vehicles, motorcycles and motor homes only. Alaska, Delaware and Montana charge no state sales tax on a vehicle at all. Four places are missing, for two different reasons. Hawaii and the District of Columbia are missing because neither one writes such a rule down: Hawaii has no sales tax for a trade-in to be deducted from, and the District taxes a car on its NADA book value rather than on what you actually paid, so a trade-in never enters the sum. Mississippi and New Hampshire are missing only because their government websites would not open for us. We would rather show a gap than copy a figure out of a second-hand reproduction of the law.", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/", "licence": "Facts taken from official state government (DOR/DMV/Treasury) pages, cited with short attributed quotes. Facts are not copyrightable (Feist, 1991); no state tax guidance page's text is reproduced beyond a short quote.", "last_verified": "2026-08-20", "stale_after": "2027-08-20", "sources": [ "https://www.revenue.alabama.gov/wp-content/uploads/2022/06/Automotive_Sales_Use_Lease_Tax_Guide.pdf", "https://www.legfin.akleg.gov/Overview/Overview2025.pdf", "https://azdor.gov/sites/default/files/2023-03/RULINGS_TPT_1996_tpr96-1.pdf", "https://codeofarrules.arkansas.gov/Rules/Rule?chapterID=33&levelType=section&partID=971§ionID=62989&subChapterID=241&subPartID=9365&titleID=26", "https://cdtfa.ca.gov/lawguides/vol2/suta/140-0500.html", "https://tax.colorado.gov/sales-use-tax-topics-motor-vehicle-sales", "https://portal.ct.gov/dmv/vehicle-services/sales-tax-registrations", "https://revenue.delaware.gov/business-tax-forms/exemption-certificates/", "https://floridarevenue.com/Forms_library/current/brochure/gt800030.pdf", "https://dor.georgia.gov/title-ad-valorem-tax-tavt-faq", "https://tax.idaho.gov/taxes/sales-use/transportation/motor-vehicles/dealers/sales-price/", "https://tax.illinois.gov/forms/sales/vehicleusetax/st-556-sales-tax-transaction-return-instructions.html", "https://www.in.gov/dor/files/sib28s.pdf", "https://www.legis.iowa.gov/docs/iac/chapter/701.250.pdf", "https://www.ksrevenue.gov/pub1526.html", "https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53526", "https://revenue.louisiana.gov/tax-education-and-faqs/faqs/sales-tax-reform/what-is-included-in-sales-price/", "https://www.maine.gov/future/sites/maine.gov.revenue/files/inline-files/IB42OriginalRegistrationofVehicles10282019.pdf", "https://mva.maryland.gov/your-mva-guide/businesses/bulletins-businesses/taxable-price", "https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter64H/Section26", "https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/SUW/TY2026/485_11-25.pdf", "https://www.revenue.state.mn.us/guide/motor-vehicle-sales", "https://dor.mo.gov/forms/5687.pdf", "https://revenue.mt.gov/taxes/general-sales-tax", "https://revenue.nebraska.gov/sites/default/files/doc/legal/regs/1-020.pdf", "https://tax.nv.gov/wp-content/uploads/2025/09/Motor-Vehicle-and-Vessel-Dealers-Packet-1.pdf", "https://www.nj.gov/treasury/taxation/documents/pdf/guides/New-Jersey-Consumer-Automotive-Tax-Guide.pdf", "https://www.tax.newmexico.gov/all-nm-taxes/2020/10/22/motor-vehicle-excise-tax/", "https://www.tax.ny.gov/pdf/publications/sales/pub838.pdf", "https://www.ncleg.net/EnactedLegislation/Statutes/PDF/ByArticle/Chapter_105/Article_5A.pdf", "https://www.tax.nd.gov/sites/www/files/documents/guidelines/business/sales-use/gl-21963.pdf", "https://tax.ohio.gov/business/sales-and-use-tax/taxability", "https://oklahoma.gov/content/dam/ok/en/tax/documents/resources/rules-and-policies/motor-vehicle-policy/Chapter60-MotorVehicles.pdf", "https://www.oregon.gov/dor/programs/businesses/pages/vehicle-privilege-and-use-taxes.aspx", "https://www.pacodeandbulletin.gov/Display/pacode?file=%2Fsecure%2Fpacode%2Fdata%2F061%2Fchapter31%2Fs31.44.html", "https://dmv.ri.gov/registrations-plates-titles/sales-tax", "https://dor.sc.gov/sites/dor/files/Documents/Policy%20Manuals/sales-and-use-tax-auto-and-truck-dealers-guide.pdf", "https://sdlegislature.gov/api/Statutes/32-5B.html?all=true", "https://www.tn.gov/content/dam/tn/revenue/documents/tax_manuals/june-2025/auto-dealership-manual.pdf", "https://comptroller.texas.gov/taxes/motor-vehicle/sales-use.php", "https://tax.utah.gov/forms-pubs/pub-05/", "https://dmv.vermont.gov/sites/dmv/files/documents/VD-119i-Registration_Tax_Title_Instructions.pdf", "https://www.dmv.virginia.gov/vehicles/taxes-fees/sut", "https://dor.wa.gov/education/industry-guides/auto-dealers/trade-ins", "https://dmv.wv.gov/titles", "https://www.revenue.wi.gov/DOR%20Publications/pb202.pdf", "https://www.dot.state.wy.us/files/live/sites/wydot/files/shared/Motor%20Vehicle%20Services/WYSalesUseTaxStatementForMotorVehicleSales_08.01.22.pdf" ], "records": [ { "state": "Alabama", "trade_in_credit": "full credit", "citation": "Administrative Rule 810-6-1-.22", "id": "alabama", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/alabama/", "source": "https://www.revenue.alabama.gov/wp-content/uploads/2022/06/Automotive_Sales_Use_Lease_Tax_Guide.pdf", "source_quote": "When a used automotive vehicle or vehicles are taken in trade as a credit or partial payment on the sale of a new or used automotive vehicle, the sales tax is levied on the net difference. Other items exchanged for full or partial payment are to be included in the measure of the tax. (Administrative Rule 810-6-1-.22).", "verified_fields": [ "citation" ], "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Alaska", "trade_in_credit": "no state sales tax", "id": "alaska", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/alaska/", "source": "https://www.legfin.akleg.gov/Overview/Overview2025.pdf", "source_quote": "Alaska is the only state that has no statewide sales tax but allows for the collection of local sales taxes.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Arizona", "trade_in_credit": "full credit", "id": "arizona", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/arizona/", "source": "https://azdor.gov/sites/default/files/2023-03/RULINGS_TPT_1996_tpr96-1.pdf", "source_quote": "\"gross income\" and \"gross proceeds of sales\" do not include \"the value of merchandise traded in on the purchase of new merchandise when the trade-in allowance is deducted from the sales price of the new merchandise before completion of the sale.\"", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Arkansas", "trade_in_credit": "full credit", "id": "arkansas", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/arkansas/", "source": "https://codeofarrules.arkansas.gov/Rules/Rule?chapterID=33&levelType=section&partID=971§ionID=62989&subChapterID=241&subPartID=9365&titleID=26", "source_quote": "If the total gross receipts or gross proceeds for the sale of a motor vehicle or trailer are two thousand five hundred dollars ($2,500) or more, then sales or use tax will be due on the difference between the total gross receipts or gross proceeds for the motor vehicle and any credit resulting from the trade in of any used motor vehicle or trailer.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "California", "trade_in_credit": "no credit", "citation": "Regulation 1654(b)(1)", "id": "california", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/california/", "source": "https://cdtfa.ca.gov/lawguides/vol2/suta/140-0500.html", "source_quote": "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).)", "verified_fields": [ "citation" ], "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Colorado", "trade_in_credit": "full credit", "id": "colorado", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/colorado/", "source": "https://tax.colorado.gov/sales-use-tax-topics-motor-vehicle-sales", "source_quote": "If the purchaser trades in a motor vehicle they own as part of a transaction to purchase another motor vehicle, the fair market value of the trade-in is excluded from the taxable purchase price, so long as the motor vehicle the purchaser trades in is subject to licensing, registration, or certification.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Connecticut", "trade_in_credit": "full credit", "id": "connecticut", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/connecticut/", "source": "https://portal.ct.gov/dmv/vehicle-services/sales-tax-registrations", "source_quote": "If your vehicle was purchased from a licensed dealership, the 6.35% (or 7.75% for vehicles over $50,000) sales and use tax is based on the purchase price. We allow full trade-in credit when computing the Connecticut Sales and Use tax if the vehicle was purchased from a licensed dealership.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Delaware", "trade_in_credit": "no state sales tax", "id": "delaware", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/delaware/", "source": "https://revenue.delaware.gov/business-tax-forms/exemption-certificates/", "source_quote": "There are no state or local sales taxes in Delaware and as such, sales tax exemption certificates and reseller certificates are not applicable to Delaware.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Florida", "trade_in_credit": "full credit", "id": "florida", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/florida/", "source": "https://floridarevenue.com/Forms_library/current/brochure/gt800030.pdf", "source_quote": "A registered motor vehicle dealer may deduct a trade-in allowance from the taxable sales price of a motor vehicle when, in a single transaction, tangible personal property (not real property) is traded as part of the motor vehicle sale.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Georgia", "trade_in_credit": "capped credit", "credit_cap": "when the sale was made by a dealer, but not when the sale was made by a private individual", "id": "georgia", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/georgia/", "source": "https://dor.georgia.gov/title-ad-valorem-tax-tavt-faq", "source_quote": "The TAVT is calculated by multiplying the fair market value by the rate in effect on the date of purchase. A reduction is made for the trade-in when the sale was made by a dealer, but not when the sale was made by a private individual.", "verified_fields": [ "credit_cap" ], "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Idaho", "trade_in_credit": "full credit", "id": "idaho", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/idaho/", "source": "https://tax.idaho.gov/taxes/sales-use/transportation/motor-vehicles/dealers/sales-price/", "source_quote": "You can accept merchandise as full or partial payment of a motor vehicle you sell. The amount allowed on the traded-in merchandise reduces the sales price, which is the amount you charge tax on.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Illinois", "trade_in_credit": "full credit", "id": "illinois", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/illinois/", "source": "https://tax.illinois.gov/forms/sales/vehicleusetax/st-556-sales-tax-transaction-return-instructions.html", "source_quote": "For sales made on or after January 1, 2020, up to and including December 31, 2021, for purposes of calculating your Sales Tax due, you cannot claim trade-in credit exceeding $10,000 for any first division motor vehicle that was traded in during the sale being reported on Form ST-556. For sales made on or after January 1, 2022, the $10,000 trade-in credit limit no longer applies.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Indiana", "trade_in_credit": "full credit", "id": "indiana", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/indiana/", "source": "https://www.in.gov/dor/files/sib28s.pdf", "source_quote": "The value of property from a like-kind exchange is deductible from the taxable gross retail income for Indiana sales tax purposes. To be an exempt trade, the vehicle traded-in must be owned and titled in the name of the customer.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Iowa", "trade_in_credit": "full credit", "citation": "Iowa Code section 321.105A(2)\u201ca\u201d(2)", "id": "iowa", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/iowa/", "source": "https://www.legis.iowa.gov/docs/iac/chapter/701.250.pdf", "source_quote": "A trade-in allowance is excluded from the purchase price if the requirements of Iowa Code section 321.105A(2)\u201ca\u201d(2) are met.", "verified_fields": [ "citation" ], "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Kansas", "trade_in_credit": "full credit", "id": "kansas", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/kansas/", "source": "https://www.ksrevenue.gov/pub1526.html", "source_quote": "A trade-in involves accepting a vehicle in exchange for credit against the purchase of another vehicle. Dealers should charge sales tax on the net price or trade difference \u2014 after the trade-in allowance.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Kentucky", "trade_in_credit": "full credit", "citation": "KRS 138.450(16)", "id": "kentucky", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/kentucky/", "source": "https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53526", "source_quote": "\"Retail price\" for: 1. Used motor vehicles, except those vehicles for which the retail price is established in subsection (13), (14), (15), (17), or (19) of this section; and 2. U-Drive-It motor vehicles that are not transferred within one hundred eighty (180) days of being registered as a U-Drive-It or that have more than five thousand (5,000) miles; means the total consideration given, excluding any amount allowed as a trade- in allowance by the seller", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Louisiana", "trade_in_credit": "full credit", "id": "louisiana", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/louisiana/", "source": "https://revenue.louisiana.gov/tax-education-and-faqs/faqs/sales-tax-reform/what-is-included-in-sales-price/", "source_quote": "Sales tax is due on the sales price of tangible personal property, digital products or taxable services. Sales price is the total price for which tangible personal property, digital products or taxable services are sold less the fair market value of any article traded in, including any services.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Maine", "trade_in_credit": "full credit", "citation": "36 M.R.S. \u00a7 1765", "id": "maine", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/maine/", "source": "https://www.maine.gov/future/sites/maine.gov.revenue/files/inline-files/IB42OriginalRegistrationofVehicles10282019.pdf", "source_quote": "When one or more of the items listed in 36 M.R.S. \u00a7 1765 are traded in toward the sale price of another item of the same kind (e.g., motor vehicle traded for a motor vehicle, trailer for a trailer, etc.), the sales or use tax is levied only on the difference between the sale price of the purchased item and the trade-in value allowed for the item or items taken in trade, except for transactions between dealers involving the exchange of property from inventory.", "verified_fields": [ "citation" ], "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Maryland", "trade_in_credit": "full credit", "id": "maryland", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/maryland/", "source": "https://mva.maryland.gov/your-mva-guide/businesses/bulletins-businesses/taxable-price", "source_quote": "Maryland law defines \u201ctotal purchase price\u201d as the retail value of a vehicle as certified by the dealer, including any dealer processing charge, less an allowance for trade-in of a non-leased vehicle with no allowance for other nonmonetary consideration, including down payment or manufacturer\u2019s rebate.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Massachusetts", "trade_in_credit": "full credit", "id": "massachusetts", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/massachusetts/", "source": "https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter64H/Section26", "source_quote": "Section 26. Where a trade-in of a motor vehicle or trailer is received by a dealer in such vehicles holding a valid vendor's registration, upon the sale of another motor vehicle or trailer to a consumer or user, the tax shall be imposed only on the difference between the sales price of the motor vehicle or trailer purchased and the amount allowed on the motor vehicle or trailer traded in on such purchase.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Michigan", "trade_in_credit": "capped credit", "credit_cap": "$12,000 or the agreed-upon value of a motor vehicle (whichever is less)", "id": "michigan", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/michigan/", "source": "https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/SUW/TY2026/485_11-25.pdf", "source_quote": "Motor Vehicles: $12,000 or the agreed-upon value of a motor vehicle (whichever is less). This tax reduction is only applicable on a motor vehicle traded in for the purchase of a new or used motor vehicle or recreational vehicle from a licensed dealer.", "verified_fields": [ "credit_cap" ], "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Minnesota", "trade_in_credit": "full credit", "id": "minnesota", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/minnesota/", "source": "https://www.revenue.state.mn.us/guide/motor-vehicle-sales", "source_quote": "The taxable sales price is determined by subtracting any rebates and trade-in allowance from the vehicle sales price.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Missouri", "trade_in_credit": "full credit", "id": "missouri", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/missouri/", "source": "https://dor.mo.gov/forms/5687.pdf", "source_quote": "State sales tax of 4.225 percent, plus the buyer\u2019s local sales tax on the purchase price, less trade-in allowance, if any;", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Montana", "trade_in_credit": "no state sales tax", "id": "montana", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/montana/", "source": "https://revenue.mt.gov/taxes/general-sales-tax", "source_quote": "Montana does not have a general-use sales tax", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Nebraska", "trade_in_credit": "full credit", "id": "nebraska", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/nebraska/", "source": "https://revenue.nebraska.gov/sites/default/files/doc/legal/regs/1-020.pdf", "source_quote": "The tax due shall be computed on the difference between the total sales price and the total of any trade-in allowance for another motor vehicle taken by any person and any rebates used to reduce the selling price of the vehicle.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Nevada", "trade_in_credit": "full credit", "citation": "NRS 372.025 and 374.030", "id": "nevada", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/nevada/", "source": "https://tax.nv.gov/wp-content/uploads/2025/09/Motor-Vehicle-and-Vessel-Dealers-Packet-1.pdf", "source_quote": "Pursuant to NRS 372.025 and 374.030 there is an allowance against the selling price given by a retailer for the value of a used vehicle which is taken in trade on the purchase of another vehicle. This is called the trade-in allowance. The allowance is equal to the full market value of the vehicle traded in.", "verified_fields": [ "citation" ], "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "New Jersey", "trade_in_credit": "full credit", "id": "new-jersey", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/new-jersey/", "source": "https://www.nj.gov/treasury/taxation/documents/pdf/guides/New-Jersey-Consumer-Automotive-Tax-Guide.pdf", "source_quote": "What must a dealership exclude when determining the sales price of a motor vehicle? The amount of any credit the dealership gives the purchaser for a trade-in, and actual costs imposed by the New Jersey Motor Vehicle Commission (MVC) for a motor vehicle title and registration.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "New Mexico", "trade_in_credit": "full credit", "id": "new-mexico", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/new-mexico/", "source": "https://www.tax.newmexico.gov/all-nm-taxes/2020/10/22/motor-vehicle-excise-tax/", "source_quote": "The tax is 4% of the price paid for the vehicle less any trade-in credit.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "New York", "trade_in_credit": "full credit", "id": "new-york", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/new-york/", "source": "https://www.tax.ny.gov/pdf/publications/sales/pub838.pdf", "source_quote": "The amount of the credit the dealer gives to the purchaser for any motor vehicle (or other tangible personal property) taken in trade, and accepted as part payment on the purchase of a motor vehicle, may be deducted from the taxable receipt amount, but only if the motor vehicle (or other property) taken in trade is intended to be resold, even if to a scrap yard.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "North Carolina", "trade_in_credit": "full credit", "id": "north-carolina", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/north-carolina/", "source": "https://www.ncleg.net/EnactedLegislation/Statutes/PDF/ByArticle/Chapter_105/Article_5A.pdf", "source_quote": "The retail value of a motor vehicle for which a certificate of title is issued because of a sale of the motor vehicle by a retailer is the sales price of the motor vehicle, including all accessories attached to the vehicle when it is delivered to the purchaser, less the amount of any allowance given by the retailer for a motor vehicle taken in trade as a full or partial payment for the purchased motor vehicle.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "North Dakota", "trade_in_credit": "full credit", "id": "north-dakota", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/north-dakota/", "source": "https://www.tax.nd.gov/sites/www/files/documents/guidelines/business/sales-use/gl-21963.pdf", "source_quote": "When a motor vehicle, or any tangible personal property subject to sales and use tax upon resale, is traded in to purchase a vehicle, the trade-in credit is subtracted from the selling price of the vehicle to determine the taxable purchase price.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Ohio", "trade_in_credit": "capped credit", "credit_cap": "New Motor Vehicles: Tax base reduced by trade-in value. Used Vehicles: No reduction.", "id": "ohio", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/ohio/", "source": "https://tax.ohio.gov/business/sales-and-use-tax/taxability", "source_quote": "New Motor Vehicles: Tax base reduced by trade-in value. Used Vehicles: No reduction.", "verified_fields": [ "credit_cap" ], "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Oklahoma", "trade_in_credit": "no credit", "id": "oklahoma", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/oklahoma/", "source": "https://oklahoma.gov/content/dam/ok/en/tax/documents/resources/rules-and-policies/motor-vehicle-policy/Chapter60-MotorVehicles.pdf", "source_quote": "Sales tax assessment is based upon the purchase price of the vehicle before any credit or discount is allowed for a vehicle trade-in.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Oregon", "trade_in_credit": "no credit", "id": "oregon", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/oregon/", "source": "https://www.oregon.gov/dor/programs/businesses/pages/vehicle-privilege-and-use-taxes.aspx", "source_quote": "Do down payments and/or trade-ins reduce my cash sales price? No, trade-ins and down payments do not reduce your cash sales price.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Pennsylvania", "trade_in_credit": "full credit", "id": "pennsylvania", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/pennsylvania/", "source": "https://www.pacodeandbulletin.gov/Display/pacode?file=%2Fsecure%2Fpacode%2Fdata%2F061%2Fchapter31%2Fs31.44.html", "source_quote": "The tax is computed upon the full amount of the purchase price of a vehicle less the trade-in deduction. A deduction from the purchase price shall be permitted for an amount equal to the amount of a trade-in allowed on the purchase, if the trade-in occurs at the same time of the sale.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Rhode Island", "trade_in_credit": "capped credit", "credit_cap": "passenger vehicles, motorcycles, and motor homes only", "id": "rhode-island", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/rhode-island/", "source": "https://dmv.ri.gov/registrations-plates-titles/sales-tax", "source_quote": "New or used vehicles, sales tax is 7% of the purchase price, minus trade-in and other allowances. This applies to passenger vehicles, motorcycles, and motor homes only. All other vehicles are excluded from the trade-in allowance.", "verified_fields": [ "credit_cap" ], "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "South Carolina", "trade_in_credit": "full credit", "citation": "Code Section 12-36-90", "id": "south-carolina", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/south-carolina/", "source": "https://dor.sc.gov/sites/dor/files/Documents/Policy%20Manuals/sales-and-use-tax-auto-and-truck-dealers-guide.pdf", "source_quote": "Generally, the term \u201cgross proceeds of sales\u201d is defined in Code Section 12-36-90 as the value proceeding or accruing from the sale of tangible personal property, without any deductions for the cost of goods sold; the cost of materials, labor, or service; interest paid; losses; transportation costs; manufacturers or importers excise taxes imposed by the United States; or any other expenses. It does not, however, include the value of any trade-in.", "verified_fields": [ "citation" ], "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "South Dakota", "trade_in_credit": "full credit", "id": "south-dakota", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/south-dakota/", "source": "https://sdlegislature.gov/api/Statutes/32-5B.html?all=true", "source_quote": "For a used motor vehicle sold, leased, or transferred by any person other than a licensed motor vehicle dealer, the total consideration received in money or otherwise. However, when a motor vehicle is taken in trade as a credit or part payment on a used motor vehicle, the credit or trade-in value shall be deducted from the total consideration so that the net consideration is established.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Tennessee", "trade_in_credit": "full credit", "id": "tennessee", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/tennessee/", "source": "https://www.tn.gov/content/dam/tn/revenue/documents/tax_manuals/june-2025/auto-dealership-manual.pdf", "source_quote": "When an item of tangible personal property is taken in trade as a credit or partial payment on the sale of new or used items, the sales and use tax is computed and paid on the net difference between the sales price of the new or used item sold and any credit actually given for the used item accepted in trade.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Texas", "trade_in_credit": "full credit", "id": "texas", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/texas/", "source": "https://comptroller.texas.gov/taxes/motor-vehicle/sales-use.php", "source_quote": "Sales: 6.25 percent of sales price, minus any trade-in allowance.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Utah", "trade_in_credit": "full credit", "id": "utah", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/utah/", "source": "https://tax.utah.gov/forms-pubs/pub-05/", "source_quote": "An allowance for a trade-in of tangible personal property on the purchase of a vehicle may be excluded from the amount on which the tax is computed.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Vermont", "trade_in_credit": "full credit", "id": "vermont", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/vermont/", "source": "https://dmv.vermont.gov/sites/dmv/files/documents/VD-119i-Registration_Tax_Title_Instructions.pdf", "source_quote": "Purchase and Use Tax is due at the time of registration and/or title at 6% of the purchase price or the JD Power value, whichever is higher, minus the value of any trade-in vehicle or any other allowable credit.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Virginia", "trade_in_credit": "no credit", "id": "virginia", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/virginia/", "source": "https://www.dmv.virginia.gov/vehicles/taxes-fees/sut", "source_quote": "The gross sales price of a vehicle is the cost of the vehicle after any rebates or incentives are applied. It includes the dealer processing fee, but does not include any other price reductions, such as credit for trade-ins, unpaid liens or other unpaid credits.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Washington", "trade_in_credit": "full credit", "id": "washington", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/washington/", "source": "https://dor.wa.gov/education/industry-guides/auto-dealers/trade-ins", "source_quote": "For purposes of the retail sales tax measure, the selling price excludes \"trade-in property of like kind.\" This means that dealers will collect retail sales tax from retail customers on the price after the value of the trade-in is deducted.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "West Virginia", "trade_in_credit": "full credit", "id": "west-virginia", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/west-virginia/", "source": "https://dmv.wv.gov/titles", "source_quote": "Trade-In Credit: If a vehicle trade-in is part of the deal, the 6% titling tax is calculated on the net purchase price (Purchase Price minus Trade-In Value). The trade-in vehicle must be titled in West Virginia in the applicant's name to qualify for this tax credit.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Wisconsin", "trade_in_credit": "full credit", "id": "wisconsin", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/wisconsin/", "source": "https://www.revenue.wi.gov/DOR%20Publications/pb202.pdf", "source_quote": "If the sale of a motor vehicle and the trade-in are one transaction, the sales price or purchase price subject to Wisconsin sales or use tax does not include the amount allowed for the trade-in.", "derived_fields": [ "state", "trade_in_credit" ] }, { "state": "Wyoming", "trade_in_credit": "full credit", "id": "wyoming", "url": "https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/wyoming/", "source": "https://www.dot.state.wy.us/files/live/sites/wydot/files/shared/Motor%20Vehicle%20Services/WYSalesUseTaxStatementForMotorVehicleSales_08.01.22.pdf", "source_quote": "Trade-in vehicle's title must already be in purchaser's name to reduce sales/use tax due on purchased vehicle.", "derived_fields": [ "state", "trade_in_credit" ] } ] }