Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

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?

7 Answers

Relevance
  • 1 decade ago
    Favorite Answer

    Nope. Whichever state you register it in is the one you pay taxes.

  • 1 decade ago

    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).

  • 1 decade ago

    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

  • 1 decade ago

    You pay taxes to the state where you register the car.

  • How do you think about the answers? You can sign in to vote the answer.
  • 1 decade ago

    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.

  • Henry
    Lv 7
    1 decade ago

    You pay taxes in the state you register the car.

  • Anonymous
    5 years ago

    when you buy the car in one other other states, other than through a private party, you will pay when you buy and you will pay when you register it in the state you plan to register it

Still have questions? Get your answers by asking now.