In other words, be sure to subtract the trade-in amount from the car price before calculating sales tax.Īs an example, let’s say you are purchasing a new SUV for $35,000 and your trade-in is worth $10,000. You don’t have to pay sales tax on trade-ins in Iowa. The overall price will be lower, which means you will pay less in sales tax than with a new vehicle. Still, purchasing a used car is a wise choice for many. The sales tax rules remain the same whether the car is new or used. ![]() Yes, in Iowa you must pay the car sales tax on a used vehicle. Iowa Car Sales Tax Calculatorĭo I Have to Pay Sales Tax on a Used Car? Remember that the total amount you pay for a car ( out the door price) not only includes sales tax, but also registration, and dealership fees. This means that your sales tax is $1,500 on a $30,000 purchase price. 05%.įor example, let’s say that you want to purchase a new car for $30,000, you would use the following formula to calculate the sales tax: You can calculate the sales tax in Iowa by multiplying the final purchase price by. This is different than the standard 6% sales tax rate for other goods and services in Iowa. Iowa considers the 5% sales tax as a "One-Time Registration Fee". Therefore, you will be required to pay an additional 5% on top of the purchase price of the vehicle. The state sales tax on a car purchase in Iowa is 5%. Do I Have to Pay Sales Tax on a Used Car?.Calculate Car Sales Tax in Iowa Example:. ![]() ![]() ![]()
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