What New Car Fees Should You Pay?


1. Maximum sales tax: Often you pay a combination of state, county and local taxes. This is the estimated maximum tax you should be charged, depending on which city you live in. The sales tax rates were sourced from sales-tax automation company Avalara.

2. Average DMV fees: The typical amount it will cost to register a new vehicle in your state.

3. Trade-in sales tax credit? A “Y” in this column means that you will pay sales tax only on the difference between your new car purchase and the value of your trade-in. An “N” in the column signifies that you will pay tax on the full amount of your new car purchase.

4. Are incentives taxed? A “Y” in this column indicates that the buyer will pay tax on the purchase price before the manufacturer rebate is applied.

5. Doc fee limits: This will tell you if the documentation fee is regulated by the state and the maximum allowed amount.

6. Median doc fee: This is the typical amount you can expect to pay for a dealer documentation fee. In this case, we’ve provided the median amount charged per state, rather than the average, because we think it gives a truer representation of what most buyers will pay.

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