Pennsylvania Sales Tax on cars and trucks Pennsylvania:


Taxation of car sales in PA How are vehicle sales taxed in Pennsylvania?

Pennsylvania Sales Tax on Car Purchases:

Vehicles purchases are some of the largest sales commonly made in Pennsylvania, which means that they can lead to a hefty sales tax bill. This page covers the most important aspects of Pennsylvania's sales tax with respects to vehicle purchases. For vehicles that are being rented or leased, see see taxation of leases and rentals.

Pennsylvania collects a 6% state sales tax rate on the purchase of all vehicles, with the exception of Allegheny County and the City of Philadelphia. The sales tax rate for Allegheny County is 7%, and the sales tax rate in the City of Philadelphia is 8%. Some dealerships may also charge a 113 dollar document preparation charge. The maximum tax that can be charged is 625 dollars.

In addition to taxes, car purchases in Pennsylvania may be subject to other fees like registration, title, and plate fees. You can find these fees further down on the page.

Do Pennsylvania vehicle taxes apply to trade-ins and rebates?

How are trade-ins taxed?

Many dealerships allow you to trade-in your old car in exchange for a credit applied to the price of a new vehicle. For example, you could trade-in your old car and receive a $5,000 credit against the price of a $10,000 new vehicle, making your out-of-pocket cost only $5,000.

In Pennsylvania, the taxable price of your new vehicle will be considered to be $5,000, as the value of your trade-in is not subject to sales tax. This means that you save the sales taxes you would otherwise have paid on the $5,000 value of your trade-in.

How are rebates and dealer incentives taxed?

Many dealers offer cash incentives or manufacturer rebates on the sticker price of a vehicle in order to encourage sales. For example, a $1,000 cash rebate may be offered on a $10,000 car, meaning that the out of pocket cost to the buyer is $9,000.

Pennsylvania taxes vehicle purchases after rebates or incentives are applied to the price, which means that the buyer in this scenario will only pay taxes on the vehicle as if it cost $9,000.

Other taxes and fees applicable to Pennsylvania car purchases

In addition to state and local sales taxes, there are a number of additional taxes and fees Pennsylvania car buyers may encounter. These fees are separate from the sales tax, and will likely be collected by the Pennsylvania Department of Motor Vehicles and not the Pennsylvania Department of Revenue.

Title Fee: $51
Registration Fee: $36 - $84
Plate Transfer Fee: $9

Average DMV fees in Pennsylvania on a new-car purchase add up to $361, which includes the title, registration, and plate fees shown above.

Pennsylvania Documentation Fees

Dealerships may also charge a documentation fee or "doc fee", which covers the costs incurred by the dealership preparing and filing the sales contract, sales tax documents, etc. These fees are separate from the taxes and DMV fees listed above.

The average doc fee in Pennsylvania is $1301, and Pennsylvania law does not limit the amount of doc fees a dealer can charge. Because these fees are set by the dealerships and not the government, they can vary dealership to dealership or even vehicle to vehicle.

1 - Average DMV and Documentation Fees for Pennsylvania calculated by

Back to Pennsylvania Top
** This Document Provided By SalesTaxHandbook **

Related pages

oahu tax rateroanoke county taxesdiesel prices in missouricities in yamhill county oregontax free weekend in louisianaschuyler nebraska zip codeoregon sales tax exemptionmobile county sales tax ratesales tax mobile alabamagranby colorado zip codespicewood texas zip codesales tax in moline ilmineral ridge zip codearkansas tax calculatorutah dmv registrationcarteret county taxessale tax in louisianalibertyville il zip codevan meter iowa zip codeindiana retail licensesales tax rate jacksonville fllincolnville maine zipmissouri retail sales tax licensesales tax rate in houston txmaryland sales tax calculatorsales tax in broward county floridamount pleasant tx zip codebuncombe co taxburbank ohio zip codehawaii ge taxrankin county taxflorida tax bracketswhat is nevada sales taxflorida dor formssales tax yuma azgranite springs new yorkwyoming tax ratefinleyville zip codesales tax in harris county texasrichmond sales taxtax rate springfield mosan ysidro ca zip codeteutopolis il zip codebeer sales in utahoklahoma auto sales taxalbertson salessales tax rate for atlanta gazip code hastings mntaxation department wasales tax in fulton county gael sobrante california zip codestreamlined sales and use taxwinnebago county il property recordswoodinville sales taxmultistate tax exemption certificatepasco county sales tax ratebridgeview zip codebethune coloradoga vehicle tax calculatorarkansas department of motor vehiclesstate of michigan sales tax license applicationlummi island zip codealameda county taxesnorth carolina liquor pricescities in arapahoe county coloradoindiana sales tax rateimboden arkansas zip codedoes amazon charge sales tax in floridabutler county sales taxsales tax westchester county nyjoshua texas zip codeumpire arkansasnc tax tables