How car sales tax works in New York
New York charges 4% state sales tax plus the local rate of the place where you live, not where the dealer is. Combined rates run from 7% to 8.875%. In New York City the rate is 8.875%: 4% state, 4.5% city and 0.375% for the Metropolitan Commuter Transportation District (MCTD).
- Trade-in credit: the trade-in allowance is subtracted before tax, with no cap.
- Manufacturer rebates are taxed. A rebate the manufacturer pays back to the dealer does not lower the taxable price. A discount or rebate the dealer pays on its own does.
- Dealer processing fee: capped at $175, and not taxed when it is listed separately.
- Private sales: you pay sales tax at the DMV on the purchase price (Form DTF-802), at the rate for your address.
- Family: no tax on a sale or gift from your spouse, parent, child, stepparent or stepchild.
- New residents: no New York tax on a car you bought while you were not a New York resident.
| Where you live | Combined rate |
|---|---|
| New York City (all 5 boroughs) | 8.875% |
| Westchester - City of Yonkers | 8.875% |
| Erie, Oneida, Suffolk | 8.75% |
| Nassau | 8.625% |
| Allegany | 8.5% |
| Putnam, Rockland, Westchester (rest) | 8.375% |
| Herkimer | 8.25% |
| Dutchess, Orange | 8.125% |
| Most other counties (Albany, Monroe, Onondaga...) | 8% |
| Ontario | 7.5% |
| Saratoga, Warren, Washington | 7% |
Title and registration fees in New York
| Fee | Amount |
|---|---|
| Title certificate | $50 |
| License plates (new) | $25 |
| Registration, 2 years (by weight) | $26 - $140 |
| Typical car, 3,251-3,350 lb (2 years) | $53.50 |
| County use tax, 2 years (most counties) | $10 - $20 |
| New York City use tax (2 years) | $30 |
| MCTD fee, 12 downstate counties (2 years) | $50 |
| Dealer processing fee (maximum) | $175 |
New York registers passenger cars for 2 years at a time, priced by weight. Cars with 6 or more cylinders and electric cars pay at least $32.50. Nassau charges a $30 county use tax, and Suffolk and Westchester charge $30 or $60 depending on weight.
Example: a $32,000 new car in Kings County
Price $32,000.00, $1,000.00 manufacturer rebate, $8,000.00 trade-in and a $175.00 doc fee, bought from a dealer:
| Sales tax (4%) | $960.00 |
| Local tax (4.875%) | $1,170.00 |
| Title fee | $50.00 |
| Registration fee | $53.50 |
| License plate | $25.00 |
| County vehicle use tax (2 years, typical) | ≈ $10.00 |
| MCTD supplemental fee (2 years) | $50.00 |
| Total taxes | $2,130.00 |
|---|---|
| Total government fees | $188.50 |
| Out-the-door price | $33,493.50 |
| After the trade-in, you pay | $25,493.50 |
Common mistakes
- Using the dealer's local rate instead of the rate for the address where you live.
- Subtracting a manufacturer rebate before tax: New York taxes it when the manufacturer pays the dealer back.
- Paying more than $175 for the dealer's registration processing fee.
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