If i buy a car out of state do i have to pay taxes in both states?
I live in PA, if i buy a car in Maryland do i have to pay taxes in PA and MD?
I live in PA, if i buy a car in Maryland do i have to pay taxes in PA and MD?
A.J.
Favorite Answer
Nope. Whichever state you register it in is the one you pay taxes.
shoredude2
Pennsylvania requires you to pay tax on any car before it is initially registered. However, if you paid taxes to another state (in this case, Maryland), you would use that as a credit to what you owe PA.
Since Maryland and Pennsylvania currently have the same sales tax rate of 6%, you would pay the tax to Maryland. Then hold onto the pink slip, so you can show that you already paid the tax to Maryland. Only difference is if you live in Allegheny or Philadelphia County, you will owe the additional 1% (or 2% in Philly, if you don't do it soon).
Helen, EA in PA
Since PA taxes and MD taxes are the same (unless you live in Philly or Pittsburgh), PA will allow credit for the 6% paid to MD.
If you do not title it in MD, you will pay PA tax when you title it here in PA.
Helen, EA in PA
Johanne C
You pay taxes to the state where you register the car.
efflandt
If it is from a dealer, you typically you pay sales tax in the state where you take delivery of the vehicle, and your home state would likely give you credit for sales tax already paid vs. tax you would have normally owed in your home state.
If you buy it from a private party you would likely just pay whatever sales/use tax in your home state before you can title and register it.