Understanding Used Car Sales Tax in Ohio: Rates, Calculations, and Fees
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Shopping for used cars in Ohio? Don't fall in love with the perfect ride until you have budgeted for the Ohio used car sales tax, plus title and registration fees. Read on to learn how the sales tax and other fees work, what your tax rate may be, and how to apply that rate to calculate your potential taxes due. Plus, find out how to get the best cheap car insurance in Ohio with EverQuote.
Introduction to Ohio Used Car Sales Tax
The used car sales tax in Ohio adds up to 8% to the cost of any used car you purchase and register. The total rate includes a statewide sales tax of 5.75% plus additional taxes charged by the county, as explained below.
The Ohio Bureau of Motor Vehicles (BMV) levies sales tax on all used car purchases, whether you purchase from a dealer or an individual. If you buy from a dealer, the dealer calculates and collects the sales tax. If you buy from a private seller, you will pay the tax when you register the vehicle. Generally, the BMV uses the vehicle price to calculate the tax.
Additional Local Sales Taxes in Ohio
There are up to three components in Ohio's sales tax:
- The state sales tax rate of 5.75%
- County-specific taxes ranging from 0.50% to 2%
- Transit taxes, charged in 11 counties, ranging from 0.10% to 1%
Combining these elements brings the combined sales tax rate up to a range of 6.50% to 8%, depending on your county of residence. See the complete list of county sales tax rates at Ohio.gov.
How To Calculate the Taxable Amount for a Used Car
Generally, you calculate the Ohio used car sales tax by multiplying the applicable tax rate by the purchase price. In Ohio and most other states, the vehicle price or sale price is the total value exchanged for the car. The value can be paid in cash, debt, or trade. Buyers and sellers typically document vehicle prices on bills of sale, purchase agreements, or sales contracts.
Example Calculation of Ohio Used Car Sales Tax
Say you live in Summit County, Ohio, where the sales tax is 6.75%. You purchase a used car for $10,000 cash from your neighbor. Your sales tax liability is 6.75% times $10,000, or $675.
The same math applies if you finance this car. Down payments and future interest costs do not affect sales tax calculations.
Sales Tax on Used Car in Ohio When You Trade
Say you live in Franklin County, where the Ohio used car sales tax rate is 7.5%. You negotiate with your neighbor to trade landscaping work for her vehicle. In this case, whatever price you would normally charge for the landscaping work will be the car's taxable value. So, if the landscaping is worth $7,500, your Franklin County sales tax would be $562.50.
If you trade more than one item for a used car, the taxable amount is the combined value of all items. For example, you might trade a car worth $1,000 plus a motorcycle worth $3,000. The Franklin County tax on this transaction would be $4,000 multiplied by 7.5% or $300.
Ohio does not offer a trade-in allowance on used car purchases. If you buy a new car, however, you can reduce its taxable value by the value of a car you have traded in.
Potential Tax Exemptions for Used Car Purchases
Some purchases may be exempt from the Ohio used car sales tax, depending on the vehicle's intended use. If you will use the car primarily for direct farming, transportation for hire, transportation services, or in support of a nonprofit organization or church, you may qualify for a sales tax exemption.
Title and Registration Fees in Ohio
In addition to sales tax, you will also pay title and registration fees to the Ohio BMV. The title fees for used cars may include:
- The certificate of title fee is $15. Duplicate and replacement titles also cost $15 each. The fee for a salvage title is $4. Salvage titles are issued when an insurance company has declared the car a total loss.
- The fee to change a lienholder on an existing title or a title transfer is $15.
- The fee to inspect vehicles purchased and titled in another state is $6.50.
- The BMV also charges a late fee of $5. You have 30 days from the date of vehicle purchase to register the car.
Annual registration fees in Ohio are $6 annually plus any local fees. The township or municipality may additionally charge local registration fees. These range from $0 to $30.
See the complete list of local registration fees by county at Ohio.gov. Additional costs to consider are license fees, document authentication fees, and vision screening fees. License fees are $20.75 to $25.75 for four years, document authentication fees are $1.50, and vision screening costs $2.75. You'll also need to purchase Ohio auto insurance before you take your new ride out on the road.
Find the Best Car Insurance Rates After Your Purchase
Finally, remember to secure Ohio car insurance right away. You will find the best rate for your zip code and driving record by requesting a custom quote. Visit EverQuote for a free comparison of your insurance options. It only takes minutes — a worthy investment to protect your new purchase.