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TIP #14A01-01
DATE ISSUED: February 25, 2014

Motor Vehicle Sales Tax Rates by State as of December 31, 2013
And Tax Credit Application


Motor Vehicles Sold in Florida to Residents of Another State

Section 212.08(10), Florida Statutes (F.S.), allows a partial exemption for a motor vehicle purchased by a resident of another state. The tax imposed is the amount of sales tax that would be imposed by the purchaser's home state if the vehicle were purchased in that state; however, the tax imposed must not exceed the Florida 6% tax rate. The tax collected is Florida tax and must be paid to the Florida Department of Revenue.

The nonresident purchaser is required at the time of sale to complete Form DR-123, Affidavit for Partial Exemption of Motor Vehicle Sold for Licensing in Another State, declaring his or her intent to license the vehicle in his or her home state within 45 days of the date of purchase. If the nonresident purchaser licenses the motor vehicle in his or her home state within 45 days from the date of purchase, there is no requirement that the motor vehicle be removed from this state.

The rate of Florida tax to be imposed under this provision is indicated for each state in the attached chart.

The partial exemption for a motor vehicle sold in Florida to a nonresident purchaser does not apply to a nonresident corporation or partnership when:

  • An officer of the corporation is a Florida resident; or
  • A stockholder who owns at least 10 percent of the corporation is a Florida resident; or
  • A partner who has at least a 10 percent ownership in the partnership is a Florida resident.

However, the partial exemption may be allowed for corporations or partnerships if the vehicle is removed from Florida within 45 days after purchase and remains outside this state for a minimum of 180 days, regardless of the residency of the owners or stockholders of the purchasing entity.

Currently, the states of Arkansas, Mississippi, and West Virginia impose a sales tax on motor vehicles, but they DO NOT allow a credit for taxes paid to Florida. Residents of these states should be informed that they must pay sales tax to Florida at the rate imposed by their home state when they purchase a vehicle in Florida and must also pay tax to their home state when the vehicle is licensed in their home state.

Motor Vehicles Purchased in Another State and Brought into Florida

Section 212.06(7), F.S., allows a credit to be given on tangible personal property brought into Florida where a like tax has been lawfully imposed and paid in another state. If the amount paid is equal to or greater than the amount imposed by Florida, no additional tax is due. If the amount is less than the amount imposed in Florida, only the difference between the two is due. However, it is presumed that tangible personal property used in another state, territory of the U.S., or the District of Columbia for six months or longer before being brought into Florida was not purchased for use in Florida; and therefore, no Florida tax is due. No credit of Florida tax is given for use in or taxes paid in another country. See section entitled "Foreign Countries."

Use the information provided in the attached chart to determine if Florida allows a credit for a like tax paid in another state.

Credit against Florida sales tax and any discretionary sales surtax shall be given for a like tax paid in another state, whether the tax has been paid to that state, or to a county or city (local taxes) within that state.

Reference:  Sections 212.06(7) and 212.08(10), Florida Statutes

For More Information

This document is intended to alert you to the requirements contained in Florida laws and administrative rules. It does not by its own effect create rights or require compliance.

For forms and other information, visit our website at www.myflorida.com/dor or call Taxpayer Services, 8:00 a.m. to 7:00 p.m., ET, Monday through Friday, excluding holidays, at 800-352-3671.

For a detailed written response to your questions, write the Florida Department of Revenue, Taxpayer Services, MS 3-2000, 5050 West Tennessee Street, Tallahassee, FL 32399-0112.



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STATE Sales Tax Rate Credit allowed by Florida for tax paid in another state Credit allowed by state for tax paid in Florida Exemption for occasional or isolated sales Exemption for sales of motor vehicles to resident military personnel Local taxes authorized  
ALABAMA 2% YES YES NO NO Local Taxes Authorized Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade–in.
ALASKA None NO NO     Local Taxes Authorized  
ARIZONA 5.6% YES YES YES NO Local Taxes Authorized Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade–in.
ARKANSAS 6.5% YES NO NO NO Local Taxes Authorized Sales tax is imposed on new or used motor vehicles with a taxable purchase price of $4,000 or greater. Credit for trade–in allowed.
CALIFORNIA 7.5%
Eff. 1/1/13
YES YES NO NO Local Taxes Authorized Tax is calculated on the sales price of a new or used motor vehicle. NO credit for trade–in.
COLORADO 2.9% YES YES NO NO   Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade–in.
CONNECTICUT 6.35%

(7% for motor vehicles with a sales price that exceeds $50,000)
YES YES NO NO   Commercial trucks, truck tractors, tractors, semi-trailers, and vehicles used in combination therewith ARE exempt if the gross vehicle weight rating is in excess of 26,000 lbs. or the vehicle is used exclusively in interstate commerce.

Tax is calculated on the sales price of a motor vehicle, less credit for trade-in when purchased from a licensed motor vehicle dealer.
DELAWARE None YES, for the motor vehicle document fee paid YES, if the vehicle was titled in Florida and retitled in Delaware within 90 days from date of the Florida title NO NO   The document fee is 3.75%. This fee is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
DISTRICT OF COLUMBIA None No credit allowed for the motor vehicle excise tax paid in the District of Columbia NO NO NO   A motor vehicle excise tax is imposed as follows: 6% of the fair market value of new and used vehicles 3,499 lbs. or less; 7% of the fair market value of new and used vehicles 3,500 lbs. to 4,999 lbs.; 8% of the fair market value for new and used vehicles 4,999 lbs. or more. There is no excise tax on hybrid vehicles. No credit for trade-in.
FLORIDA 6% Refer to other states for tax credit provisions Refer to other states for tax credit provisions NO NO Local Taxes Authorized Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
GEORGIA None – for most motor vehicles that are titled in Georgia*
Eff. 3/1/13
YES, but no credit is allowed for the Title Ad Valorem Tax Fee YES, on certain motor vehicles, such as pull-behind trailers and pull-behind campers

NO, credit is allowed against the Title Ad Valorem Tax Fee for sales tax paid in Florida on most motor vehicles
Eff. 3/1/13
YES, but not from the Title Ad Valorem Tax Fee NO   *A 4% sales tax rate will still be imposed by Georgia on its non-titled motor vehicles, such as trailers and pull-behind campers.

Effective 1/1/14, a 6.75% Title Ad Valorem Tax Fee is calculated on the greater of the sales price or the value listed in the Georgia ad valorem assessment manual for a new motor vehicle, less trade-in, rebate, and cash discount. For a used motor vehicle, the tax is based on the value listed in the Georgia ad valorem assessment manual, less credit for trade-in.

Therefore, when a Georgia resident purchases and takes delivery of a motor vehicle in Florida, provided the required nonresident documentation is obtained, no Florida sales tax or Ad Valorem Tax Fee is to be imposed by the Florida dealer. To be noted, the Ad Valorem Tax Fee does not apply to certain vehicles that the State of Florida considers to be motor vehicles. These vehicles are pull-behind trailers and pull-behind campers. Because the State of Georgia does not impose the Ad Valorem Tax Fee on such vehicles and continues to impose Georgia sales tax, a Florida dealer that sells these types of vehicles to Georgia residents taking delivery in Florida should charge Florida sales tax. Provided the applicable documentation for a nonresident is collected, the dealer should charge Florida sales tax at the rate of 4%, effective 3/1/13.
HAWAII None No credit allowed for the general excise tax paid in Hawaii YES YES NO Local Taxes Authorized 4% or 4.5% general excise tax (depending upon county) is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
IDAHO 6% YES YES NO NO   Sales of motor vehicles with a maximum gross registered weight over 26,000 lbs. that are registered under the I.R.P. and used as part of a fleet with over 10% of miles outside Idaho ARE exempt.

Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
ILLINOIS 6.25% YES YES NO, however, tax is determined by the purchase price or fair market value of the vehicle and the age of the vehicle (See Table A and Table B) NO Local Taxes Authorized Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.

Table A
Vehicles purchased for less than $15,000:
Vehicle Age in Years Tax
1 year or newer $390
2 years or newer $290
3 years or newer $215
4 years or newer $165
5 years or newer $115
6 years or newer $ 90
7 years or newer $ 80
8 years or newer $ 65
9 years or newer $ 50
10 years or newer $ 40
11 years or older $ 25

Table B
Vehicles purchased for $15,000 or more:
Purchase Price Tax
$15,000 to $19,999 $ 750
$20,000 to $24,000 $1,000
$25,000 to $29,000 $1,250
$30,000 or more $1,500
INDIANA 7% YES YES NO NO   Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
IOWA None YES, for the registration fee paid YES NO NO   Trucks, trailers, and semi-trailers registered with a gross weight of 13 tons or more and used in interstate commerce ARE exempt.

Motor vehicles are subject to a one-time registration fee of 5% of the sales or lease price of the vehicle. The registration fee is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
KANSAS 6.15% YES YES NO NO Local Taxes Authorized Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
KENTUCKY None – (applies only to Kentucky residents) YES
1) when sales tax was paid in Kentucky by a Florida resident
2) for the motor vehicle usage tax paid by a Kentucky resident in Kentucky
YES YES NO   A 6% motor vehicle usage tax is imposed on new and used motor vehicles. If it is a new vehicle, no credit for trade-in is allowed. If it is a used vehicle, credit for trade-in is allowed, if the trade-in was previously registered in Kentucky. The tax is based on 90% of the manufacturer's suggested retail price (MSRP) or the total selling price, provided the buyer and seller complete a notarized affidavit attesting to the total consideration.

NOTE: Mobile homes, trailers, and boats are subject to 6% sales tax. Credit is allowed by Florida on mobile homes, trailers, and boats.
LOUISIANA 4% YES YES NO NO Local Taxes Authorized Trucks and trailers over 26,000 lbs. used 80% of the time in interstate commerce ARE exempt. New mobile homes are taxed at 4% of 54% of the purchase price. Used mobile homes are exempt whether sold by a dealer or an individual.

Tax is calculated on the sales price of new or used motor vehicles, less credit for trade-in.
MAINE 5.5% YES YES NO NO   Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
MARYLAND None Yes, for motor vehicle excise tax paid NO NO NO   A motor vehicle excise tax of 6% on fair market value (for a new or used vehicle from a motor vehicle dealer, fair market value equals the purchase price of the vehicle as certified by the dealer), less credit for trade-in.
MASSACHUSETTS 6.25% YES YES NO NO   Tax is calculated on the sales price of new or used motor vehicles. Credit for trade-in allowed when motor vehicle traded in is to a registered dealer.
MICHIGAN 6% YES YES NO NO   Concrete mixing trucks used for industrial purposes ARE exempt. Commercial trucks with 2 axles and GVW of 10,000 lbs. or a power unit having 3 or more axles ARE exempt when purchased by an interstate motor carrier or rented or leased to an interstate motor carrier and used in interstate commerce.

Tax is calculated on the sales price of new or used motor vehicles. No credit for trade-in.
MINNESOTA 6.5% YES YES NO NO Local Taxes Authorized Ambulances owned and operated by local governments ARE exempt. Ready mix concrete trucks ARE exempt.

Tax is calculated on the sales price of new and used motor vehicles, less credit for trade-in. Used vehicles that are 10 years old or older are taxed at a flat $10, if the sales price is under $3000.
MISSISSIPPI 5% – motor vehicles and light trucks 10,000 lbs. or less;
3% – semi-trailers and trucks over 10,000 lbs.;
7% – motorcycles
YES NO – except for mobile homes NO (including casual sales) – unless the motor vehicle being sold is 10 or more years after the date the vehicle was manufactured, or the vehicle being sold is a trailer NO   Tax is calculated on the sales price of new or used motor vehicles, less credit for trade-in.
MISSOURI 4.225% YES YES NO NO Local Taxes Authorized Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
MONTANA None NO NO        
NEBRASKA 5.5% YES YES, up to 5.5% NO NO Local Taxes Authorized Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
NEVADA 6.85% YES YES YES NO Local Taxes Authorized Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
NEW HAMPSHIRE None NO NO        
NEW JERSEY 7% YES YES NO NO   Only commercial vehicles over 26,000 lb., 18,000 lb. for farm vehicles, or operated actively and exclusively in interstate commerce ARE NOT taxable.

Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
NEW MEXICO None YES, for the motor vehicle excise tax paid YES NO NO   A 3% motor vehicle excise tax is imposed on new and used vehicles on sales price less credit for trade-in.
NEW YORK 4% YES YES NO NO   Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
NORTH CAROLINA None YES, for the highway use tax paid YES   NO   Motor vehicles are subject to a 3% highway use tax. Tax is calculated on the sales price of a new or used motor vehicle less credit for trade-in. $1,000 maximum tax applies to vehicles with a gross vehicle weight of over 26,000 lbs. Recreational vehicles are subject to a maximum tax of $1,500 unless the recreational vehicle is over 26,000 lbs., which is subject to a $1,000 maximum tax.
NORTH DAKOTA None YES, for the motor vehicle excise tax paid YES NO YES, when the resident military member is stationed OUTSIDE North Dakota   A motor vehicle excise tax of 5% is imposed on the sales price of new and used motor vehicles, less credit for trade-in.

NOTE: New mobile homes are subject to 3% sales tax; used mobile homes are not taxed; boats and off-road vehicles are subject to 5% sales tax.
OHIO 5.75% YES YES NO NO Local Taxes Authorized Tax is calculated on the sales price of new or used motor vehicles. Credit for a trade-in is allowed only when the motor vehicle is traded with a new motor vehicle dealer for a new motor vehicle. Credit for trade-in allowed on new or used watercraft when another watercraft is given in trade and the seller is registered with the Ohio Department of Natural Resources.
OKLAHOMA None YES, for the motor vehicle excise tax paid NO NO NO   A 3.25% excise tax is imposed on new motor vehicles on the purchase price. The excise tax on used vehicles is $20 on the first $1,500 of the purchase price plus 3.25% of the remainder. No credit for trade-in.
OREGON None NO NO        
PENNSYLVANIA 6% YES YES NO NO   Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
RHODE ISLAND 7% YES YES NO NO   Tax is calculated on the sales price of new or used motor vehicles. Trade-in credit allowed on automobiles and motor homes only.

Boats and mobile homes ARE NOT subject to tax.
SOUTH CAROLINA 5% – $300 maximum YES YES NO NO Local Taxes Authorized Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in (maximum $300).
SOUTH DAKOTA None on motor vehicles YES, for the motor vehicle excise tax paid YES NO NO   A 3% excise tax is calculated on the sales price of new and used motor vehicles with a credit allowed for trade-in.
TENNESSEE 7% YES YES NO YES to qualified military personnel Local Taxes Authorized Sales of trucks with maximum gross vehicle weight of 20,000 lbs. or more to common carriers holding common or contract authority by the federal government or other state regulatory agency for use in interstate commerce ARE exempt.

Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
TEXAS 6.25% YES YES NO NO   Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
UTAH 4.70% YES YES NO NO Local Taxes Authorized Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
VERMONT 6% – purchase and use tax YES YES NO NO   Trade-in is allowed.
VIRGINIA 4% – $75 minimum YES YES NO NO   Trucks, tractor trucks, trailers, or semi-trailers with a gross vehicle weight rating of 26,001 lbs. or more ARE exempt.

$75 minimum. No credit for trade-in. (A Virginia resident who purchases a vehicle in Florida will receive credit for the tax paid to Florida, but will owe additional tax to Virginia on the amount of the trade-in.)
WASHINGTON 6.8% YES YES NO NO Local Taxes Authorized Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
WEST VIRGINIA 5% – on motor vehicles over $500;
$25 – on motor vehicles less than $500
YES, when the sale is made through a motor vehicle dealer NO NO NO   Tax is imposed on the sales price of new and used motor vehicles, when sold by a vehicle dealer. Vehicles not purchased from a registered dealer that are 2 years old or less are taxed on the current NADA loan value. Credit allowed for trade-in only if the vehicle being traded-in has been previously titled in West Virginia in the name of the owner who is applying for the title.
WISCONSIN 5% YES YES NO NO Local Taxes Authorized Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
WYOMING 4% YES YES NO NO   Tax is calculated on the sales price of a new or used motor vehicle, less credit for trade-in.
U.S. TERRITORIES The full amount of Florida sales tax is imposed on the sales price of each motor vehicle to be exported to territories or foreign countries, when the motor vehicle is delivered to the purchaser or his representative in Florida. Tax does not apply if the motor vehicle is irrevocably committed to the exportation process at the time of sale, and such process is continuous and unbroken.
GUAM, PUERTO RICO The 6% Florida use tax will apply and be due on motor vehicles imported or caused to be imported from the territories of Guam and Puerto Rico for use, consumption, distribution, or storage to be used or consumed in Florida within 6 months from the date of purchase. The Florida use tax does not apply if a like tax equal to or greater than the amount levied by Florida law has been lawfully imposed and paid in those territories. However, it shall be presumed that a motor vehicle used in the territories of Guam or Puerto Rico for 6 months or longer before being imported into Florida was not purchased for use in Florida.
AMERICAN SAMOA,
VIRGIN ISLANDS
The 6% Florida use tax will apply and be due on motor vehicles imported or caused to be imported from the territories of American Samoa and the Virgin Islands for use, consumption, distribution, or storage to be used or consumed in Florida. However, it shall be presumed that motor vehicles used in American Samoa or the Virgin Islands for 6 months or longer before being imported into Florida were not purchased for use in Florida.
FOREIGN COUNTRIES Tax shall apply and be due on any aircraft, boat, mobile home, motor vehicle, or other vehicle imported or caused to be imported from a foreign country into Florida for use, consumption, distribution, or storage to be used or consumed in Florida. It does not matter if the aircraft, boat, mobile home, motor vehicle, or other vehicle was used in another country for a period of six months or more prior to the time it is brought into Florida. Furthermore, tax paid in another country will not be recognized by the State of Florida when calculating the tax due.

The tax is calculated on the value of the vehicle at the time it is brought into Florida, not on the original purchase price.