How to Determine the Tax on a Used Car

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    • 1). Discover the percentage of sales tax charged by the state and locality. The percentage of sales tax is determined by the state and locality you are purchasing the car, not where you live.

    • 2). Using a calculator, enter the purchase price of the car. Multiply the amount by the percentage of state sales tax. For example: if you purchase the used car for $10,000 and the percentage of state sales tax is 5.5 percent, enter 10000 X .055. Press the "equal" key. This is the amount of state sales tax.

    • 3). Enter the amount of the car's purchase price. Multiply the amount by the amount of local sales tax (if applicable). Press the "equal" key. This is the amount of local sales tax.

    • 4). Add the total amount of sales tax to the purchase price amount of the used car. This is the total amount of the car.

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