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The sales-tax rate you type
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This guide
The percent is yours. It applies to price minus trade-in, and the dollars are financed.
Percent, not dollars
Type 8 for eight percent, not the tax in dollars. The calculator multiplies that percent by the taxable price.
If you were handed a tax in dollars, you can back into the percent, or raise the vehicle price by the extra dollars if the percent would be misleading.
Trade-in before tax
A $20,000 car and a $5,000 trade-in are taxed on $15,000 in this formula. States that tax the full price will not match. Adjust until the tax dollars equal the worksheet you were given.
A trade-in of zero taxes the full price. That is the case with no old car.
Tax raises interest
Because tax is inside the principal, you pay interest on the tax if you finance it. A larger down payment can cover the tax and shrink that effect.
The offer comparison then uses that principal, tax included, for both rates.
This explains how WiseCalculator treats the numbers you type. It is not a lender’s offer and it is not advice for your loan.
More in Car
- A car with no trade-inLeave trade-in at zero. Tax applies to the full price, and the loan is price minus down payment plus tax.
- A large down payment on a carMore cash down lowers the loan payment and the interest. It does not lower insurance or fuel.
- Fees on a car loan from the APR gapThe dollar fee is the loan minus the amount the APR would support for the same payment. It is paid at the start.