BenCummins
Active Member
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For example, I buy 80K truck, tax is 10% ($8000), I trade my truck in for $40K reducing my sales price to 40K resulting in only paying $4000 in taxes?Correct. Most states just charge on the total sales price and allow trade-ins to count against that sales price. You just need to weigh the sales tax savings (59k-your trade) vs how much more you’ll private party your truck for.
For me, I sold it for 6k more than a dealer would trade in…which made up for the $2,100 in tax savings.