State Sales Tax
#2
RE: State Sales Tax
In most states you pay taxes on the sale price of the vehicle less the trade in (on the theory that you have already paid tax on your trade). It depends if the dealership puts the rebate in as a discount or as cash down. in the first case no, in the second case yes (actually you do not pay tax o the rebate in either case, but you do pay the tax on the part of the car the rebate pays for).