California Used Car Sales Tax & Fees (2024)
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Buying and Selling Used Cars in California
According to the California New Car Dealers Association, the first quarter of 2024 saw used car sales drop 2.3% compared to 2023. However, that doesn't mean no one's shopping for used cars. In fact, the downshift in sales seems to be caused by limited supplies, pushing more people into the new car market.
If you do get your hands on a used car in California, it's essential to understand the sales taxes and other fees you'll be responsible for before legally driving your vehicle. While California sets a statewide sales tax on vehicle sales, some districts impose separate tax rates, which can increase the amount you'll owe. You can check your local district sales tax rate through Avalara.
We've broken down the taxes and fees you can expect when buying a used vehicle in California. Keep in mind that the amount you pay can vary depending on factors like your car's purchase price and where you live.
California has a statewide sales tax of 7.25% imposed on new and used vehicles.
California DMV and State Fees
| Item | Cost | Details |
|---|---|---|
| New and used car sales tax | 7.25% | Most California cities and counties tack on an additional sales tax amount ranging from 0.3% to 3.5%. |
| Use tax | 7.25% | If you purchase a used car outside California or from a non-dealer (such as a private party), you must pay a use tax instead of the sales tax. The use tax rates mirror current California sales tax rates. You must submit your use tax payment when registering your vehicle or within 30 days of purchase. Some vehicles sales may qualify for exemption or credit. For instance, if you receive the vehicle as a gift or buy it from a family member, you may not owe use tax on the purchase. |
| Title transfer fee | $15 | |
| Title only | $25 | |
| Rush title | $15 | To expedite registration and title transfer within 72 hours, paid in addition to general title and registration fees |
| Registration | $74 | Includes a $3 fee for alternative fuel/technology |
| Vehicle license fee | 0.65% of vehicle's purchase price | You can deduct the vehicle license fee from your California state income tax return. Certain groups may be eligible to waive the fee, including disabled veterans with a 100% service-connected disability rating, non-resident military personnel, and qualifying Native American tribal members. |
| Smog transfer fee | $8 | The smog transfer fee applies to vehicles less than four years old. If the car is older, the original owner must provide a current smog certification during the sales process. |
| California Highway Patrol | $30 | |
| Clean Air Vehicle sticker | $22 | Vehicles that meet California's emissions standards may obtain a Clean Air Vehicle sticker that allows them to drive in High Occupancy Vehicle lanes. |
| License plates | $25 | |
| Reflectorized license plate | $1 | Extra fee for reflectorized plates |
| Registration card | $25 | |
| Registration sticker | $25 | |
| Zero-emissions vehicle parking sticker | $17 | Applicable for electric and hybrid vehicles that require charging in dedicated zero-emissions vehicle parking spaces |
California Dealership Fees
If you purchase your used vehicle from a dealership, it may charge additional fees during the sales process.
| Item | Cost | Details |
|---|---|---|
| Documentation Fees | $70 or $85 | The fee varies depending on whether the dealer is part of the Business Partner Automation program. Participating member dealers can charge an $85 documentation fee for titling and registering vehicle purchases. Non-participating dealers are limited to a $70 fee. |
| Extended Warranty | Varies | Some California dealerships offer extended warranties or vehicle service contracts to help pay for any unexpected costly repairs or maintenance. If you opt to purchase a warranty, you may pay an upfront fee, or the dealership may include it in your monthly loan payment. |
| Advertising Fee | Varies | Occasionally, dealerships may include an advertising fee for the vehicles they sell. Often, advertising fees are negotiable, so you may be able to convince the dealer to drop the fee if they include one. |
Insurance
California requires all vehicle owners to acquire insurance on vehicles parked or operated on the roads. So, before driving your newly purchased car, get insurance that meets California's minimum requirements.
Since insurance rates can vary tremendously, it pays to shop around for the best deal. Determine what coverage you need, and request a quote from California insurers. Some companies offer discounts you may be eligible for that can lower insurance for used cars even more. Hit continue and compare options immediately!
Miscellaneous
If you purchase your used vehicle from a dealership, it may charge additional fees during the sales process.
| Item | Cost | Details |
|---|---|---|
| Vehicle history report | Varies | When purchasing a used vehicle, it's smart to request a vehicle history report that identifies prior owners and any accidents the car was in. Some California dealerships will provide a vehicle history report upon request, or you can get one through Carfax or AutoCheck. |
| Vehicle inspection report | Varies | Before buying a used vehicle, consider taking it to an independent mechanic for a thorough inspection. An inspection can alert you to any serious maintenance issues it has. Fees for an inspection vary across different mechanics. |