Used Car Shopping: How To Avoid Paying Sales Tax On A Used Car?

Car key & credit card on a signed contract
There are certain parts of the buying process that can be negotiable, but taxes and, especially, sales can’t be touched. This is just part of the car shopping and buying process for many Minneapolis drivers. Sales tax on used cars can drive up the price of the vehicle considerably but there are some ways you can avoid paying sales tax.



If you’re wondering how to avoid paying sales tax on a used car, use this guide brought to you by the specialists at Cornerstone Plymouth in Plymouth to learn these tips today. Contact us for more information on sales tax on used cars and more with our team of specialists today. Also, apply for financing with our finance center to start the buying process now!

States With No Sales Tax On Used Cars

The first place you can start saving money by not paying sales tax is living in a state without sales tax. There are a few states that don’t charge sales tax on used cars, which makes the car shopping process easier. Check them out below:

  • Alaska
  • Delaware
  • Montana
  • New Hampshire
  • Oregon

If you live in one of these states, you’re exempt from paying sales on a used car. Now, If you’re planning to move to a state with sales tax on used cars, you can register your car in your new state of residency if you buy within 90 days of moving.

Used Car Sales Tax Exemptions

Aside from living in a state that doesn’t charge sales tax on used cars, many of our Maple Grove customers ask us tips about how to avoid paying sales tax on a used car, especially if you don’t live in a state that doesn’t charge sales tax. Check out some legal ways to avoid paying sales tax below:

  • Vehicles that were made before 1973. They’re considered historic models.
  • Vehicles made for forestry and agriculture.
  • Certain individuals with a disability may qualify for a car sales tax exemption.

Tax Credit On Electric Vehicles Can Offset Sales Tax

With the growing popularity of electric vehicles (EVs), there are tax credits that you can use which will offset the sales tax charged on your vehicle. Before buying an electric vehicle, regardless of where you live, make sure you’re aware of the rules and regulations involving federal and state tax credits for EVs.

Shop For A Used Car For Sale at Cornerstone Plymouth

Now that you know some tips on how to avoid paying sales tax on a used car at our Minnetonka-area dealership,test drive a vehicle you like with us today! Contact us for more information!


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Main 763-559-5300 Sales 763-559-5300
3901 Vinewood Lane
Plymouth, MN 55441
Contact Us

Contact Us

Main 763-559-5300 Sales 763-559-5300
3901 Vinewood Lane
Plymouth, MN 55441
Cornerstone Plymouth 45.0272529, -93.4508119.