How to Calculate New York Car Tax

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Automotive News

Andrew Kaufman is an automotive journalist and content manager from Los Angeles, CA. He received his English Degree from Colorado College and has written about a variety of topics throughout his career.

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, Automotive News - May 17, 2012

New York car tax can sometimes be a frustrating thing to sort out. The Empire State has a 4 percent sales tax rate, which applies to the sale of cars within the state. In addition to the statewide sales tax, cities and counties in New York have the option of levying local tax rates to the sale price of your new car. Luckily, the New York State Department of Taxation and Finance has an online tool to help determine the rate of tax to pay. While it's not a New York car tax calculator per se, it allows residents to enter their address and zip code to look up the applicable combined state and local tax rate for motor vehicles. The local tax rate varies by county, and this look-up tool makes the derivation simple. You would just need to multiply the sale price of the car by the rate given for your New York home address.

Calculating New York auto sales tax can be tricky. If you purchase a vehicle from a dealership and there are manufacturer incentives and rebates associated, the auto tax you will pay is determined by the sale price before the reduction. If you purchase a car from a private party, you must complete a DTF-802 form, which is a New York state tax form, that outlines the transaction details, including the section on affidavit of sale in the case where the vehicle sale is below fair market value. This form is also used when two relatives--parent/stepparent, spouse, child/stepchild--sell a car to each other. In this situation, the purchaser does not have to pay taxes on the sale as long as the selling relative is not a registered auto dealer. The DT-802 form is necessary when obtaining title and registration from the DMV.

More information on sales tax can be found on the New York Department of Taxation and Finance, and the New York DMV websites.

, Automotive News

Andrew Kaufman is an automotive journalist and content manager from Los Angeles, CA. He received his English Degree from Colorado College and has written about a variety of topics throughout his career.

Follow On: Google+

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