Anonymous
Post 01/18/2022 19:29     Subject: Sales tax and Excise tax?
Anonymous wrote:
Anonymous wrote:Can someone please help me understand? I'm purchasing a new hybrid plug-in and I'm not clear what taxes I'll be paying.

I live in DC but will purchase in Maryland or VA. So I presume I'll be paying the sales tax of 6 percent, is that correct? And then what is the excise tax and how much do I have to pay for that?

I'm totally confused. Help!



If it's new, the dealership will tell you.

In general, add $2,000 or so to the cost of any price you're quoted that it isn't the "out the door price." That covers not just the sales tax and tags but also the freight, which is around $700 or $800.

That's for new cars. Used cars don't have freight costs and the sales tax will be lower too because of depreciation.

There are no excise taxes on cars. Excise taxes are on things like liquor, cigarettes etc. and not charged at the retail level.


Yes the dealership will tell you, some even file the registration paperwork for you. DC charges an excise tax on cars instead of a sales tax.
Anonymous
Post 01/18/2022 12:22     Subject: Sales tax and Excise tax?
Anonymous wrote:Can someone please help me understand? I'm purchasing a new hybrid plug-in and I'm not clear what taxes I'll be paying.

I live in DC but will purchase in Maryland or VA. So I presume I'll be paying the sales tax of 6 percent, is that correct? And then what is the excise tax and how much do I have to pay for that?

I'm totally confused. Help!



If it's new, the dealership will tell you.

In general, add $2,000 or so to the cost of any price you're quoted that it isn't the "out the door price." That covers not just the sales tax and tags but also the freight, which is around $700 or $800.

That's for new cars. Used cars don't have freight costs and the sales tax will be lower too because of depreciation.

There are no excise taxes on cars. Excise taxes are on things like liquor, cigarettes etc. and not charged at the retail level.
Anonymous
Post 01/18/2022 12:20     Subject: Sales tax and Excise tax?
You will pay taxes for the state you live in and register the car in. DC DMV has a nice calculator to help you figure out how much.

Fuel efficient cars pay a lot less excise tax in DC. If it’s over 40mpg you may not have to pay anything.
Anonymous
Post 01/16/2022 22:05     Subject: Re:Sales tax and Excise tax?
does anyone know what is the sales tax in DC for PHEV?

THANKS
Anonymous
Post 09/23/2021 17:25     Subject: Sales tax and Excise tax?
Can someone please help me understand? I'm purchasing a new hybrid plug-in and I'm not clear what taxes I'll be paying.

I live in DC but will purchase in Maryland or VA. So I presume I'll be paying the sales tax of 6 percent, is that correct? And then what is the excise tax and how much do I have to pay for that?

I'm totally confused. Help!