Do I still have to pay tax if I did a trade-in for the vehicle?
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Answered
You will get credit for a trade-in up to the value of the vehicle you traded. If it's at least the same value as what you traded for, no tax will be due. Otherwise, you will owe the difference in sales tax.
Keep in mind the DMV will require proof of the trade-in. The trade-in vehicle must have been titled in your name and the trade-in must be clearly shown on a bill of sale with the year, make, model, and VIN of both vehicles and the trade amount whether it was a partial trade or even trade.
If you traded the vehicle into a dealer, you may still have to pay sales tax if the trade doesn't cover the ENTIRE amount that the dealer charged.
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