I know the state of DE has no sales tax, so is it true that if a vehicle is registered in the state of DE, then there is no tax applied to the sale of the vehicle?

That would be pretty awesome if that's the case.

Can anybody confirm this?

 

EDIT: wait, not so sure anymore.. it was a long time ago.

 

Can't confirm nor deny this, but if you're not a resident then it wouldn't apply.

 

would apply to wherever the vehicle will be registered...since you drive in another state and your residence is there....you pay whatever taxes from that state.

 

If you live in DE,

But once you register it in any other state you will pay sales tax.

 

Yeah, most states have a requirement that you owned the car at least X months or something (don't remember the exact number) before transfering to their state without paying sales tax.

this is to prevent just that...people "moving" to DE for a couple weeks to buy a car and then "moving" back to their home state. The costs of transferring licenses and whatever are worth it if its saving you so much on sales tax...but requiring that you owned the car maybe 3 or 6 months in the state you bought makes it more difficult.

 

You pay whatever tax your state requires.

And DE does have tax, 2.75% on the sale of the vehicle.

 

Is there no sales tax on other stuff though? Cause I know a lot of yachts register themselves in DE to save on sales tax. Maybe the law has changed recently

 

I didn't know there was a 2.5% tax on vehicles in DE......I read somewhere that auto sales tax doesn't apply in DE. Maybe I was misinformed?

I'm thinking of moving to DE (Newark, close to the boarder of MD and DE) temporarily.

 

2.5% is still pretty damn low compared to most other states.

 

If you live in DE, you pay 2.75% of what they think it's worth(NADA value) if it's used or 2.75% of the sales price if it's new.

No normal retail 'sales' tax, but defintiely on motor vehicles.

And that's not a bad area of DE, kinda busy but not bad. Lots of young chicks near the college too...U of D has some of the finest ass in the tri-state area. Mostly 'good girls' too.

 

Damn right!

 

Man, thanks for all the info. Appreciate it.

Just to clarify, it wouldn't matter what state I bought the car in correct? I only pay taxes for where I register it.

DE has definitely got it's perks.......

 

That reminds me of the Wayne's World movie, where they do the skit where they're traveling to different destinations on the blue screen.

Then they get to Delaware...

 

Yeah but when you move back to MD or any other state expect to pay sales tax when you register the car. Happened to me years ago when I moved back to NJ from NC.

Bottom line: no such thing as a free lunch.

 

I'm planning on staying there at least a year, maybe two.....would that be long enough? Or will I have to still pay taxes twice?

Because I'll probably be moving back to Chicago after a couple years and I know that Illinois tax is higher than MD and DE.


Lot's of moving around.....

 

Doesn't matter how long it is. When you go to register the car, you will pay sales tax on the value of the car.

 

Gotcha....thanks for the help.

 

True. So you better buy a cheap-ass car.