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Asked: Mar 27, 2008 - 03:57 AM

Status: Closed

Do I pay Federal Tax on full new car price or on actual sale price which is $4,000.00 less after rebates?

I am looking to buy a 2007 new Chevy Impala, in New York state. Asking price is 19,000.00. With rebates my price will be 15,000.00. Do I pay tax on 19 or 15K?

In Buying & Selling > Car Buying > Taxes
In Makes & Models > Chevrolet > Impala
3 answers - 606 days ago

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Voted Best Answer

wgrafer

Date: Mar 27, 2008
Time: 07:26 AM

What "Federal" tax? As of now there is no 'Federal' sales or consumer tax (although there may some day be one in lieu of Federal Income Taxes - see 'Fair Tax' proposals). But you probably mean NY State Sales Tax which should be levied on your net price of $15k. And when you sell it the vehicle will again be 'taxed' etc....
ps: Don't forget to itemize your vehicle state sales tax on your Federal tax return - it is a legit deduction!

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wgrafer

Date: Mar 27, 2008
Time: 07:26 AM

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sylvia

Date: Mar 27, 2008
Time: 08:24 AM

No Federal Tax, only a state tax and that is on the actual sale price so $15k

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jeffyscott

Date: Mar 27, 2008
Time: 01:19 PM

You pay sales tax on $19,000.

Source: http://www.cga.ct.gov/2006/rpt/2006-R-01...

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I live in MS (tax at 7%)/ Thinking about buying a ...

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