I want to trade my vehicle in for a new car in Michigan. Do I receive a tax credit on my purchase?

Question

I want to trade my vehicle in for a new car in Michigan. Do I receive a tax credit on my purchase?

Answer 1

are you a Canadian ? if so you have to claim it there

Answer 2

If you live in Michigan, then you do NOT get sales tax credit for your trade. Even if you purchased a car in Indiana <which is a tax credit state>, since you are a resident of Michigan, you will not receive tax credit for your trade. I hope this helps to clarify.

Answer 3

>>   Do I receive a tax credit on my purchase?

When do you EVER receive a tax CREDIT for a purchase?

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What you get is lowered priced from the trade-in value, so you pay that much less tax.

Ex: Your trade in value is worth $10K.  Your new car is worth $30K.  You subtract the trade in value and the new car prices is just $20K and you pay tax on $20K.  This is what happened when I traded-in my old car.

Good Luck...