Make better sense (tax-wise) to buy vehicle surrounded by PA, NJ, or DE?
I'm in the open market to buy a car, and be curious what the tax rates are contained by PA (and Philly if different), NJ, and DE.
Thanks
Answers:
If you buy a car contained by Delaware and are from out of state, you need to foot the tax on the sports car anyway so there is no break (unless you finagle some abnormal arrangement that would not be legal). I now live within NJ, but bought my last 2 cars surrounded by PA - not because of tax implication, but I got the lowest prices for one and the same exact car at Sloane Toyota. I save about $1.2K which is around as good as you're gonna do. Best of luck.
Most people who live contained by northern Delaware buy their cars in Pennsylvania a short time ago because the prices there are so much smaller quantity than in Delaware.
In PA the duty rate on a car is 6% (7% if you live contained by Philadelphia or Allegheny counties). NJ is 7%. DE is 3.25%(yes, there is a duty on a car). But it doesn't matter, since if you rate a rate lower than the one where you live, you'll hold to pay the difference when you travel to register your car contained by any of the three states.
Buy the car whereever you live. If you buy something out of state and bring it home, you are required to wages use tax to your home state, equal to the amount that you save in sale tax. This is not largely enforced for little things, but they do enforce it for cars, and will not let you register the sports car without paying the duty.
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