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Some of you might be aware that it is often cheaper to buy a car in Canada, the problem is the amount of tax we have to pay on everything up here.

So what do you pay in taxes (percentage) on a new car where you live?

I live in Prince Edward Island and the tax rate is 10% federal and another 7% for the goods and service tax (GST), which brings the total tax payable on a new car 17.7%

Yes I can add, the 7% is applied to the 10% fed tax too, in essence it is a tax on a tax.
 

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In South Carolina we pay 5% sales tax, maximum of $300. So basically the sales tax on any new car is going to be $300, never any higher than that.

We also have to pay property tax on all registered vehicles. This happens once a year. Its based on the value of the car so it goes down some each year. It also varies by county.
 

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Discussion Starter #9
I assume that the property tax on the vehicles goes down as the vehicle gets older and is worth less?
 

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DesiEGO said:
^Generally property tax only goes up with time, never down, atleast thats how it is here in MI but we don't pay property taxes on cars so I am not sure :dunno:
Property tax is based on the value of the item (at least here in SC). Since vehicles lose value every year the property tax goes down every year (the rate may go up but since the car is worth less the tax bill itself always goes down.) The property tax just keeps getting lower and lower. My 2002 altima taxes were about $100 less in 2003 than they were in 2002. I also have a 1999 contour and it was only $80. I've seen people with $20 property tax bills on older cars.

Houses appreciate in value so the property taxes go up.
 

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DesiEGO said:
^Thats good to know. But why is property tax associated with the car :confused:
Not really sure. Thats just how it is. It's just another way for them to tax us.

A lot of the politicians here claim they are going to get rid of it. That would probably mean the $300 sales tax cap would be lifted. They are going to get their tax money one way or another.

I know of quite a few people who live here in SC but have family in NC or other nearby states. They buy their car here to save on the sales tax, then register it in the other state to avoid the property tax.
 

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chrisschnider said:
Not really sure. Thats just how it is. It's just another way for them to tax us.

A lot of the politicians here claim they are going to get rid of it. That would probably mean the $300 sales tax cap would be lifted. They are going to get their tax money one way or another.

I know of quite a few people who live here in SC but have family in NC or other nearby states. They buy their car here to save on the sales tax, then register it in the other state to avoid the property tax.
Do you get any Homeowner's Insurance benefits or tax write offs because of this ??
 

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Motor vehicle excise taxes have nothing to do with home ownership , nor is there any writeoff.

In MA the excise tax is levied on all motor vehicles by the local town or city government, the taxes collected go directly into the local treasury to be used for I don't know what...hopefully fixing roads and schools, but probably also for purchasing expensive gifts for local politician's girlfriends.

The tax rate here is $25 per $1000 of assessed value, value always being seriously under what NADA says even though the state says it uses NADA to determine value.

Its just a bill you get in the first quarter of the year and pay. Its not related to anything else for an individual. Really its just the local town's way of getting a little more cash in the coffers besides homeowner's property taxes...so if it keeps the bill on my house down a bit I have no problem with it.
 

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^Man, good to know all this stuff. Thank god I am not living in one of these states. There's just so much money you have to pay in these taxes. We here bitch about how much Car Insurance and Property taxes we pay each year not knowing what goes around in the rest of the country.

Sorry to hijack this thread but getting back on topic. ;)
 
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