How do you figure the sales tax on a vehicle that cost 3,500.00?

Question

How do you figure the sales tax on a vehicle that cost 3,500.00?

Answer 1

First you take your state sales tax and multiply it to your cost.

Example: If your state tax is 5% you take $3500 X .05 = $175 in sales tax.

Answer 2

Be careful on this.  In many states the tax you pay when you purchase an automobile is a "road use tax"  rather than a sales tax and the rate may be different.

Call a local car dealer, ask for the title clerk, and ask him/her what the tax would be.

Hope this helps

Jerry-the-bookkeeper