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Car sales tax · New York City

NYC sales tax for cars

NYC sales tax for cars is 8.875%: 4% New York State, 4.5% city and 0.375% for the Metropolitan Commuter Transportation District. New York charges the rate where the buyer lives, so a New York City resident pays it even when buying elsewhere. A $32,000 car with an $8,500 trade-in owes $2,085.63.

Car Cost Calculator editorial teamUpdated 3 sources

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NYC car sales tax calculator

State rules in force November 2026

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New York: sales taxEstimate

Tax due$2,085.636.52% of the price
Price after trade-in, with tax and fees$25,585.63before title and registration
Price$32,000.00
Trade-in (credited)−$8,500.00
Taxable amount$23,500.00
Sales tax (state + local + MCTD) (4% of $23,500)$940.00
Local tax (4.875%)$1,145.63
Total tax$2,085.63

The trade-in credit saves $754.37 of tax.

How it is calculated. Tax = (price − trade-in) × (4% state + local rate where you live). In New York City the local part is 4.5% city + 0.375% MCTD. Rebates paid by the manufacturer are part of the taxable price.

How the 8.875% NYC rate breaks down

New York City's combined rate is 8.875%: 4% state sales and use tax, 4.5% city sales tax and the 0.375% Metropolitan Commuter Transportation District surcharge.[2] For a motor vehicle, New York charges the combined rate where the purchaser has a permanent home, not where the car is delivered.[1]

New York car sales tax examples
CaseTaxShare of price
Pub 838 example: $32,000 car, $8,500 trade, NYC$2,085.636.52%
$45,000 SUV, no trade, NYC$3,993.758.88%
$45,000 SUV, no trade, 4% county outside MCTD$3,600.008.00%
$45,000 SUV, 4% county + 0.375% MCTD$3,768.758.38%

The Tax Department's dealer guide uses the same example: a $32,000 car with an $8,500 trade-in has a taxable amount of $23,500.[3]

Trade-ins, rebates and out-of-state purchases

  • Trade-in: deductible when the vehicle taken in trade is intended for resale, even as scrap.[3]
  • Rebates: a rebate or incentive paid by the manufacturer or another third party is included in the taxable amount; a discount funded by the dealer is not.[3]
  • Bought in another state: tax paid there is credited only if that state gives New York a reciprocal credit. New Jersey, Connecticut and Pennsylvania do not, so buying across the river does not save the tax.[1]

Buying in New Jersey or ConnecticutA New York City resident who buys there and pays that state's tax still owes New York's 8.875% when registering, with no credit.

Compare states on the car sales tax calculator, include the tax in a budget with the car affordability calculator, or see the yearly total on the cost of owning a car calculator.

Frequently asked questions

What is the sales tax on a car in NYC?

8.875%: 4% state, 4.5% city and 0.375% MCTD, based on where you live.

Does a trade-in reduce car sales tax in New York?

Yes, when the dealer takes the trade for resale.

Do I pay New York sales tax on a car bought in New Jersey?

Yes. New York gives no credit for New Jersey, Connecticut or Pennsylvania sales tax, so you pay the full New York rate when you register.

Sources

  1. Tax Bulletin ST-590 Motor Vehicles, Vessels, and Trailers; Pub 838 · NYS Department of Taxation and Finance, accessed November 14, 2026
  2. NYS Sales Tax (New York City rate) · NYC Department of Finance, accessed November 14, 2026
  3. Publication 838, Sales Tax Information for Motor Vehicle Dealers · New York State Department of Taxation and Finance, 12/12