That way, you don't have to deal with the fuss of trying to follow each state's tax laws. (FFVR 29).” Accessed March 9, 2020. You also don't need to pay the sales tax if you're disabled. The process is very similar to buying a car in your own state. Some states have reciprocal tax relationships, meaning they provide credits to each other whenever their residents pay sales taxes across state lines. Please enable scripts and reload this page. Is It Possible to Register a Car Without Insurance? Keystone State. These deductions can mitigate the sales tax you have to pay when buying the car. Indiana Bureau of Motor Vehicles. More information can be found in the Buying or Selling Your Car in Pennsylvania fact sheet. You should contact the DMV in your state for the complete list of requirements. “About New York State Inspections.” Accessed March 9, 2020. Dealers often tax out-of-state buyers the amount they'd pay if they lived there, so you may have to make up the difference if your home state's tax rate is higher. Even if you visit a non-reciprocal state, you may be able to avoid paying the sales tax in that state if you give the dealer proof that you intend to register your car in your home state, such as your driver's license. Check with your state’s DMV for the most accurate list of requirements. Place a cash deposit as required by the agreement. If you’re looking to buy a used vehicle, before you ever leave the house or get your hopes up, it’s imperative to order a vehicle history report from a reputable company like CARFAX. “What Do You Need to Register a Car?” Accessed March 9, 2020. Oregon vehicle dealers are allowed to pass the cost of the CAT on to consumers who purchase vehicles from them. This form is only available from authorized agents of PennDOT. Shopping for a bargain online opens the door to buying a car from out of state. The following information will assist you with the proper procedures when buying a vehicle in Pennsylvania. If you’re driving to a dealership in a neighboring state, search for a local... 3) Pay Your Taxes. You don't want to pay a second sales tax just because the dealer forgot to send the appropriate paperwork to your local DMV. The main difference between this arrangement and paying cash is that the financing company will get the out-of-state title. While you might think you can cheat the system by purchasing a vehicle in another state, you will owe sales tax on your new ride in your home state. Accessed March 9, 2020. Proudly founded in 1681 as a place of tolerance and freedom. If you buy a car out-of-state and bring it to your home state, though, it's not always clear which state should receive the tax, since tax laws vary by state. Make Decisions When Buying a Car Out of State From a Dealer. You may be trying to access this site from a secured browser on the server. Also, if you buy a used car instead of a new one, you must still pay a sales tax. As of 2019, New York has a car tax rate of 4 percent plus local taxes, whereas Pennsylvania has a state car tax rate of 6 percent, with some local rates much higher. Your Guide to Buying a Car Out of State 1) Be Sure to Get a Vehicle History Report. Inform the salesman that you are located in another state and give your full out-of-state address so that he can fill out the official paperwork accordingly. VIN verification is required for out of state vehicles. Before the Department of Motor Vehicles in your home state can register your new car, they may check the bill of sale to ensure you paid the sales tax, so you shouldn't try to skimp on paying it.