If you’re thinking about purchasing a used automobile in Idaho, one thing you might be wondering is if you need to pay sales tax. In Idaho, the answer is that you do indeed need to pay sales tax on a used car. However, there are a few key variables that affect how much sales tax you will pay.
The majority of purchases in Idaho are subject to a 6% sales tax, however when it comes to purchasing an automobile, the sales tax is 6% of the purchase price or the clean trade-in value determined by the National Automobile Dealers Association (NADA), whichever is higher. This means that if you buy a used automobile with a greater NADA clean trade-in value than if you buy a used car with a lower NADA clean trade-in value, you will pay more in sales tax.
In Idaho, purchasing a used car has additional fees in addition to sales tax. Depending on the age and weight of the vehicle, different registration fees apply when registering a car in Idaho. For instance, the registration cost for a passenger car under two years old and weighing less than 8,000 pounds is $48. The registration charge falls to $36 if the vehicle is older than two years.
There are several various costs you can have to pay in Idaho for taxes and licenses. You might additionally be required to pay a title cost of $14.50 in addition to the sales tax and registration fee. A $3 plate cost as well as a $25 specialty plate fee, if you want a specialty plate, must be paid if you need a new license plate. Last but not least, if you’re purchasing a used car in Idaho from a private seller, you must change the title to your name. You must pay a $14 title transfer charge in order to do this. The dealership will take care of the title transfer if you are purchasing the vehicle from them.
As a result, if you’re going to purchase a used car in Idaho, you may also be required to pay registration, title, and other fees in addition to the purchase price or NADA clean trade-in value. When looking for a used car in Idaho, be sure to include for these expenses in your spending plan.