Buying a new car in Delaware to avoid tax

[Anonymous]

Doesn’t work like that. You pay tax to the state you title it in.

[Anonymous]

Anonymous wrote:Does it make sense to buy a new EV in Delaware to avoid paying about $2,500 in sales taxes? Or are their regulations or impediments we aren't aware of?

They are called sales and use tax. You can’t do this — unless you are also titling and registering the car in Delaware you will still owe (and probably be charged) tax for your home state. So no, it makes no sense unless the price of the car is really good.

[Anonymous]

Anonymous wrote:This is hilarious. If cars were tax free in Delaware to out of state buyers, there would be zero car dealerships in MD because everyone would hop the state border to save thousands.

This was my first thought. Lol

OP is you don’t have the extra $2500, wouldn’t you just buy a car for $2500 less? I can’t see someone buying a $50k purchase and worrying about $2k.

Sounds like my cheap and illogical girlfriend. Bought a $$$$$ luxury car and trying to see if she could get away with not putting in premium Gas. SMH

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes it’s the case. We bought a car in NH 3 years ago. 3 years later we moved to MD and when we came to register our car, they made us pay 6% in sales tax. That was an unpleasant surprise.

It doesn't make any sense. You'd bought your car in NH 3 years ago and registered it in NH. There's no way MD can make you pay tax on a transaction at another state and paid tax for it.

Yeah, this is BS. I lived in NH before moving to DC. I didn't have to pay tax here when I moved down with my car. I don't think they've changed the law in the last few years.

Trust me, we were just as surprised. It was over 3k too. They make you pay the full 6% sales tax on your vehicle at current book value when coming from a state with no sales tax. Our car was only 3 year old so had plenty of book value…

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes it’s the case. We bought a car in NH 3 years ago. 3 years later we moved to MD and when we came to register our car, they made us pay 6% in sales tax. That was an unpleasant surprise.

It doesn't make any sense. You'd bought your car in NH 3 years ago and registered it in NH. There's no way MD can make you pay tax on a transaction at another state and paid tax for it.

Most States make you pax tax on the value when you register a vehicle from another State..