How Much Is Sales Tax on a Car in Florida?
Demystify Florida car sales tax. Get clear insights into how vehicle tax is applied and paid, ensuring you understand the total cost of your car purchase.
Purchasing a vehicle in Florida involves various financial considerations beyond the advertised price, with sales tax representing a significant component of the total cost. Understanding how this tax is calculated and the process for its payment is important for anyone looking to acquire a car in the state.
Florida Vehicle Sales Tax Rate
Florida imposes a statewide sales tax of 6% on the purchase of all new or used vehicles. This rate applies uniformly to the taxable price, whether from a dealership or a private seller.
Many Florida counties also assess a discretionary sales surtax on vehicle purchases. This county surtax applies to the first $5,000 of the vehicle’s purchase price. For example, a 1.5% surtax adds $75 on the first $5,000 of the sale. The total sales tax rate is a combination of the 6% state tax and any applicable county surtax, with the county portion capped at a maximum impact.
Determining the Taxable Vehicle Price
The amount on which sales tax is calculated in Florida can be reduced by certain factors. When a vehicle is traded in as part of a purchase, sales tax applies only to the difference between the new vehicle’s price and the trade-in allowance. For instance, if a $30,000 car is purchased with a $10,000 trade-in, the sales tax would be calculated on $20,000.
Manufacturer rebates generally do not reduce the taxable price of the vehicle, as sales tax is typically calculated on the vehicle’s price before such incentives are applied. Conversely, dealer incentives may sometimes reduce the taxable amount. Charges such as accessories sold with the vehicle, preparation fees, freight, handling, delivery charges, commissions, and other dealer costs that are required for the purchaser to pay are generally included in the taxable sales price.
Paying Vehicle Sales Tax
When buying a car from a licensed dealer, the dealer is responsible for collecting the sales tax at the time of purchase. The dealer then remits these collected taxes to the state on behalf of the buyer.
For vehicles purchased from a private seller, the buyer is directly responsible for paying the sales tax. This tax is paid to the Florida Department of Highway Safety and Motor Vehicles (DHSMV) or the local county tax collector’s office when the buyer registers and titles the vehicle.
If a vehicle is purchased out-of-state and brought into Florida, or if an individual moves to Florida with a vehicle, a use tax equivalent to Florida’s sales tax rate applies. Florida law allows a credit for any sales or use tax already paid in another state or U.S. territory. If the tax paid in the previous state is less than Florida’s rate, only the difference is owed. However, if the vehicle was used in another state for six months or longer before being brought into Florida, it may be presumed purchased for use outside Florida, potentially exempting it from additional Florida use tax.
Other Vehicle Purchase Fees
Beyond sales tax, several other mandatory fees contribute to the overall cost of acquiring and registering a vehicle in Florida. These fees are separate from sales tax but are generally paid during the same titling and registration process.
One such fee is the title fee, which covers the cost of transferring ownership and issuing a new vehicle title. The fee for an electronic title is typically $77.25, while a paper title costs $85.25.
Registration fees are also required to legally operate a vehicle on public roads. These fees vary based on the vehicle’s weight. For instance, annual registration fees can range from $27.60 for vehicles under 2,499 pounds to $45.60 for those weighing 3,500 pounds or more. An initial registration fee of $225 is also applied to vehicles being registered in Florida for the first time, unless a license plate from a previously owned vehicle in Florida is being transferred.
License plate fees are charged for issuing a new license plate, with a standard plate costing approximately $28. If financing a vehicle, a lien fee of around $2 may also be assessed to record the lienholder’s interest on the title. Additionally, dealerships may charge administrative or documentation fees, which cover the costs of processing paperwork and other services. These dealer fees can vary widely, with an average of up to $999 in Florida, and are distinct from state-mandated taxes or fees.