Buying a car in Florida, whether it’s a brand-new model or a reliable used vehicle, is an exciting experience. However, beyond the sticker price, it’s essential to understand the additional costs involved, particularly automobile sales tax in Florida. This guide will break down everything you need to know about Florida car sales tax to ensure a smooth and informed purchase.
Understanding Florida’s Sales Tax Rate on Vehicles
The base sales tax rate in Florida is 6%. This applies to the purchase price of any vehicle, be it new or used. It’s crucial to remember that this is a state-wide rate, and the Florida Department of Revenue (Florida Department of Revenue) is your most reliable source for the most up-to-date information and any changes to the sales tax rate.
While 6% is the starting point, keep in mind that other states have different regulations and may include additional fees such as inspection or documentation charges when you buy a car. Dealerships might also add their own fees to the final cost.
Florida specialty license plates
Florida offers a wide variety of specialty license plates, allowing drivers to express their interests and support various causes while on the road.
Calculating Your Florida Car Sales Tax
Calculating the automobile sales tax in Florida is straightforward. You simply multiply the vehicle’s purchase price by the state sales tax rate of 0.06 (6%).
Here’s an example:
If you purchase a car for $25,000, the sales tax would be:
$25,000 (Purchase Price) x 0.06 (Sales Tax Rate) = $1,500 (Sales Tax)
Therefore, you would owe $1,500 in sales tax on a $25,000 car purchase in Florida, before any other applicable fees or surtaxes.
Discretionary Sales Surtax: County-Specific Taxes in Florida
In addition to the 6% state sales tax, some counties in Florida impose a discretionary sales surtax. This is an additional percentage tacked onto the base sales tax, and it varies from county to county. It’s important to know the surtax rate in the county where you are registering your vehicle, as this will increase the total automobile sales tax in Florida you owe.
For example, Hillsborough County, a heavily populated area in Florida, has one of the highest discretionary surtaxes. As of January 2019, their total surtax rate reached 2.5%, composed of several smaller surtaxes for specific purposes like transportation, schools, healthcare, and infrastructure. Adding this 2.5% surtax to the 6% state sales tax results in a total sales tax rate of 8.5% in Hillsborough County – the highest in Florida.
To find the specific discretionary surtax rate for any Florida county, refer to the official list provided by the Florida Department of Revenue: Florida Discretionary Sales Surtax Rates.
Other Fees When Buying a Car in Florida
Beyond automobile sales tax in Florida, several other fees accompany vehicle purchases in the Sunshine State. Budgeting for these will prevent surprises when finalizing your car purchase:
- Title Fee: This fee secures your vehicle title, the legal document proving ownership. In Florida, the title fee is typically $75.75.
- Registration Fees: Vehicle registration fees in Florida vary based on vehicle type and weight. Initial registration can start around $225, but can increase for larger vehicles. You can find more details on the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) website (FLHSMV Fees).
- License Plates and Tags: Florida offers standard license plates and a wide array of specialty plates. Specialty plates, supporting various organizations and causes, come with additional fees. Explore the 120+ specialty license plates offered by Florida (Florida Specialty License Plates).
To pay these fees and automobile sales tax in Florida, contact your local Florida Department of Motor Vehicles office directly. Remember to also factor in ongoing ownership costs like auto insurance.
Purchasing a Vehicle Outside of Florida but Registering in Florida
If you buy a car outside of Florida but intend to register and use it in the state, you are still responsible for paying automobile sales tax in Florida. In this case, it’s termed a “use tax,” and it is also set at 6%.
However, Florida offers a credit for sales taxes you’ve already paid in the state where you purchased the vehicle. If you paid sales tax in another state, Florida will credit that amount against your Florida automobile sales tax liability.
- Scenario 1: Out-of-state tax equals or exceeds Florida tax: You owe no further sales tax to Florida.
- Scenario 2: Out-of-state tax is lower than Florida tax: You only pay the difference between the two rates to Florida, plus any applicable discretionary surtax.
This credit system prevents double taxation when you purchase a vehicle out of state but register it in Florida.
Sales Tax Exemptions in Florida for Vehicles
Certain situations qualify for exemptions from automobile sales tax in Florida. These exemptions are defined by the Florida Department of Revenue (Florida Sales Tax Exemptions) and include:
- Registered Car Dealers: Dealers buying vehicles for resale or lease are exempt.
- Out-of-State Delivery: Vehicles purchased in Florida but delivered to the buyer outside of Florida are exempt.
- Exported Vehicles: Vehicles bought in Florida and shipped out of the country via a licensed exporter are exempt.
- Exempt Entities: Entities holding a Florida form DR-14 (Consumer’s Certificate of Exemption) are exempt when purchasing vehicles.
- Out-of-State Dealers (Resale/Lease): Dealers from outside Florida without Florida sales tax numbers are exempt when buying for resale or lease.
Trade-In Tax Benefits
Florida offers a tax advantage for private vehicle trade-ins. When two individuals trade vehicles (not through a dealership), a trade-in allowance can be subtracted from the taxable sales price. This applies to trades involving cars, motorcycles, mobile homes, aircraft, or boats. Crucially, no money can change hands in addition to the vehicles being traded for this exemption to apply.
Loaned Vehicles and Sales Tax
Loaned vehicles can also be exempt from automobile sales tax in Florida. This includes vehicles loaned to driver’s education programs in high schools or institutions, provided they are properly licensed as loaner vehicles. Similarly, vehicles loaned to customers while their own cars are being repaired are also considered exempt loaners.
Understanding automobile sales tax in Florida and associated fees is a key part of a smart car buying process. By being informed about the rates, calculations, and potential exemptions, you can confidently navigate your next vehicle purchase in the Sunshine State.
