Registration, titling, plate, and auto insurance – no wonder why Nevada features in one of the top positions among the most expensive states to own a car. But there is one more cost that you need to be aware of – the car sales tax. The sales tax rate in the state is one of the highest in the country. So, how much is the Nevada car sales tax?
There is a statewide tax rate you must pay. In addition to that, you’ll have to pay the county and local taxes too. So, if you’re living in a county with high tax rates, expect the overall buying cost to increase well. Don’t worry; our blog will help you understand how much to pay and how to avoid paying sales tax on a car in the state.
Does Nevada have a sales tax on cars?
Yes. When buying a car, you must pay the sales tax on a car in Nevada. You can avoid paying it only if you qualify for an exemption.
How much is the sales tax on a car in Nevada?
Whether new or secondhand, a Nevada car sales tax of 4.6% applies to all car purchases in the state. But, when adding the county and local taxes, the average combined tax rate may increase to 8.25%. Your local DMV will collect the sales tax with titling, registration, and plate transfer fees when registering your car.
With a tax rate of 8.38%, Clark County has the state’s highest combined sales tax rate. At the same time, Eureka, Mineral, Humboldt, and Esmerelda counties have the lowest combined tax rate of 6.85%.
Can I buy a car in Nevada to avoid sales tax?
If you want to evade paying sales tax on your car, buy the car from a private seller. If you buy from a dealer, you must pay the tax unless you qualify for an exemption. Contact your nearest DMV office to be sure of the exemptions.
Does trading in a car reduce sales tax in Nevada?
Are you planning to trade in your old car? Consider yourself lucky, then! Imagine you’re buying a car worth $20,000 in Silver Springs. Imagine you’re trading in your car for a credit worth $5,000. Then only the sales price of $15,000 will be subject to Lyon County’s 2.5% tax in addition to the 4.6% state tax.
How are rebates and incentives taxed?
Many dealerships offer incentives and discounts on your new car’s sticker price. For instance, the dealership will offer you a $1,000 discount on a car worth $20,000, implying you must pay only $19,000 from your wallet. Nevada taxes car purchases before applying rebates or incentives, meaning that you will pay taxes on the car as if it costs the full $20,000.
Know how to get a driver’s license in Nevada
How to calculate car sales tax in Nevada
Follow these steps to find how much you pay for your car sales tax.
- If applicable, deduct the trade-in value from the car’s sticker price.
- Then add the local and county sales tax rates to 4.6% (i.e., 8.25%) to calculate the final tax rate. The overall tax rate is then divided by 100.
- Then multiply the deducted sticker price by the overall tax rate.
Do you have to pay sales tax on a used car in Nevada?
Nevada car sales tax on used cars is 4.6%. However, you must pay this only when you buy the car via a dealership. You won’t have to pay the tax if you purchase the car from a private party or a family member or receive it as a gift. But you’ll have to pay registration, title transfer, and license plate charges.
Do I have to pay sales tax on a used car from a private seller in Nevada?
No. You needn’t pay sales tax on used cars in Nevada if you buy them from a private seller.
Do I have to pay sales tax on my car when I move to Nevada?
You. Buying a car is liable to sales tax if the buyer lives in Nevada and another state.
What other fees must you pay while buying a car in Nevada?
These are the other costs you must consider while buying a car in the state.
| Category | Fee |
| Title | $28.25 |
| Registration | $33 |
| Plate transfer | $6 |
| Documentation | $440 |
Dealerships also charge you a documentation fee, which covers the charges of creating and filing the sales contract, tax forms, etc. Since the dealers fix this fee, the cost can vary from one dealership to another. Even it can vary between car models.
How do I avoid paying sales tax on a car in Nevada?
You’ll be exempt from paying the car sales tax if you meet any of the following conditions.
- You’re a military veteran.
- You’re a disabled veteran or the widow of a disabled veteran.
- The car you own was received as a gift.
- You’re blind.
- You are a tribal member of Nevada who lives on a reservation.
- A family member sold the car to you.
- A private seller sold the car to you.
- The car you have was received as a gift.
How much is car insurance in Nevada? Here’s the info!
What is the sales tax on a new car in Clark County?
The tax rate is 8.38% in Clark County.
What is the sales tax on a new car in Las Vegas?
The tax rate is 8.375% in Las Vegas.
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