Buying a vehicle in Florida? Don’t forget about sales tax. Florida, like most states, adds sales tax to the purchase price of cars, trucks, and SUVs, which can significantly increase the total cost.
This guide breaks down the complexities of Florida sales tax for vehicles, including both state and (potentially) local components.
Understanding these taxes is crucial for budgeting accurately and ensuring a smooth car-buying experience. The last thing you want is to be surprised by unexpected fees that increase the final price.
How much is Florida’s sales tax on vehicles?
Florida charges a 6% sales tax on the price of new and used cars.
This 6% tax applies to the price you and the dealer agree on after accounting for dealer discounts and any trade-in value. Note that manufacturer’s rebates usually don’t reduce the taxable price.
Tax laws change, so it’s always a good idea to double-check the current sales tax rate with the Florida Department of Revenue or your local tax collector before you buy.
Local Discretionary Sales Surtax
On top of the 6% state sales tax, most Florida counties add a discretionary sales surtax to the first $5,000 of a vehicle’s purchase price.
County Sales Surtax
The surtax rates vary by county, up to a maximum of 1.5%. So, if you bought a car for $5,000 in a county with a 1.5% surtax, you’d pay $75 in surtax.
Impact on Total Cost
The total sales tax you pay on a vehicle is the sum of the 6% state sales tax and any county surtax that applies. You’ll need to find out the surtax rate for your county in order to calculate your total sales tax liability.
How to calculate Florida car sales tax
- Figure out the vehicle’s price. Start with the agreed-upon price, but subtract any dealer discounts or trade-in credits.
- Calculate the 6% state sales tax. Multiply the adjusted purchase price by 0.06. The result is the state sales tax.
- Calculate the county surtax (if needed). Multiply the first $5,000 of the purchase price by your county’s surtax rate (up to 1.5%). Not all counties charge a surtax.
- Add state sales tax and county surtax. The sum is the total sales tax due.
Additional Fees and Taxes Beyond Sales Tax
The 6% sales tax isn’t the only expense you’ll have to budget for when buying a car in Florida. There are a few other fees you’ll need to keep in mind.
Title and Registration Fees
In addition to sales tax, Florida car buyers will typically pay title fees, registration fees, and possibly plate transfer fees.
- Title fees are about $75.75.
- Registration fees are based on the type of vehicle you’re buying, and can range from just over a dollar to more than $90.
- Plate transfer fees, to move your existing plate to a new vehicle, are usually less than $8.
Documentation Fees
Car dealerships also charge documentation fees to take care of the administrative side of the sale. These fees can vary quite a bit, but they average around $670.
Budgeting for Total Costs
When you’re figuring out your budget for a car purchase, it’s important to factor in all the taxes and fees you’ll have to pay. These extra costs can add a significant amount to the overall price, so it’s best to be prepared.
What if I buy a car out of state?
If you buy a vehicle outside Florida but bring it into the state, you’ll usually owe a “use tax.” This is generally the same as the Florida sales tax rate: 6 percent.
However, you’ll typically get credit for any sales taxes you already paid in the state where you bought the car.
Also, if you use the vehicle outside of Florida for at least six months before bringing it into the state, you might be exempt from the use tax.
Final Thoughts
Florida’s rules and rates for vehicle sales tax can be complicated, so understanding the system is essential for car buyers. To ensure accurate calculations, especially for private sales, it’s always a good idea to contact your local tax collector’s office or consult with a tax professional.