We don't collect sales tax or registration fees except for MN residents. In all other states, you'll pay sales tax when you register the vehicle at your local DMV. Although we're a licensed dealer in MN, you'll only pay taxes and fees for the state you register the vehicle in.
How will sales tax be calculated?
The DMV typically calculates sales tax using the sale price of the vehicle. However, if they deem that amount to be significantly less than the fair market value, they will ignore the sale price and calculate tax based on the fair market value. Buyers can usually provide evidence to the DMV showing the vehicle was sold for fair market value to avoid paying a higher sales tax. This evidence could include an inspection report, damage or accident report, or sale data showing what other similar vehicles have sold for.
We provide buyers with complete paperwork including a bill of sale and vehicle title with the agreed sale price listed.
Sales tax in AZ, NV, IL, and MS
Arizona and Nevada exempt all private party sales from sales tax, and Mississippi exempts private party sales for vehicles more than ten years old. Illinois has lower tax rates for private party vehicle sales. When you use KeySavvy, we'll process your transaction as a dealer, which means you'll pay sales tax as if you purchased the vehicle from a dealership. If you plan to register your vehicle in one of these states, we'll warn you about the additional tax burden. In most cases, paying the additional sales tax won't make financial sense, unless you're applying for the Used EV Tax Credit.
What about the Used EV Tax Credit?
You can find more information on the tax credit in this article.