How to Calculate Auto Sales Tax

Series Summary

Taxes are financial charges or other levies imposed on an individual or a legal entity by a state or a functional equivalent of a state. Tax collection is performed by a government agency, such as the Internal Revenue Service in the United States. When taxes are not fully paid, fines, forfeiture or incarceration may be imposed on the non-paying entity or individual. Funds provided by taxation have been used by states and their functional equivalents throughout history for expenditures on war, the enforcement of law, protection of property, economic infrastructure, public works and the operation of government itself. In this free video series, an accountant provides information on calculating taxes. Discover how to calculate automobile sales tax, how to calculate gross income tax and how to calculate sales tax. Learn about self-employment taxes, calculating IRS tax rebate checks and making estimated tax payments. With these tax tips, the numbers will always be right and doing taxes won't seem so difficult anymore.

Video Transcript

"So, you're considering the purchase of a new or used automobile and you want to know how to calculate sales tax. My name is Faye Jones and I'm going to talk to you about sales tax calculation on the automobile. The tax rate on an automobile depends on what state you're in. There are different tax rates that apply in different states. For instance, I'm in the state of Florida, in Pinellas County, and my sales tax rate is 6%, plus a 1% surtax. It also depends on warranties and the titles and that type of, those types of add-on documents that are involved in the transaction. So, recap, if you're going to buy a vehicle, it depends, the tax rate depends on what state you live in and possibly what county in that state you live in as to how much sales tax will be charged on that purchase. I suggest you contact your local sales tax authority and confirm the sales tax rate before your transaction is completed. That way, you can verify that you've been charged appropriate rate on the purchase of your new or used vehicle. Again, I'm Faye Hill. Thank you."