When I buy a used car in California, do I have to pay California state tax if it is being exported to Canada?

I plan to buy a car in California, drive it up to Canada and export it for good into Canada. I will have to pay the Canadian taxes on the purchase price I know, but will I also have to pay the California State tax at the time of purchase?

Yes You Have To Pay The Sales Tax For The State That The Vehicle Is Purchased Regardless Of The Fact That It Is Leaving The Country.

Maybe not- I had the same issue here in AZ. and in order to avoid the sales tax (8%) I had to have the car transported via 3rd party to Oregon where it was going to be used. They would not let me touch the car on an AZ. street, it had to go directly from the dealer to the transport company. Since the car was going to Oregon anyway, it cost me about $200 less to have it hauled up there, than I would have paid in sales taxes, and it solved the issue of getting it there. I found the transport company through the Internet, it worked perfect, but took awhile to get it done. I`m assuming all the same applies to a Cal. car going to Canada, talk to the DMV. Good Luck.

In most cases, automobiles are taxed at the point of registration. If the auto is purchased out of state, the selling state does not charge the sales tax because the vehicle is for out-of-state transportation. The state, in this case California, will assess sales tax.

Leave a Comment