A United States-specific calculator with the official 2026 sales tax rules, registration fees, and trade-in tax treatment. See your true monthly payment, total tax, and first-year ownership cost — then compare trade-in vs private sale.
In the United States, the true cost of buying a car combines the purchase price, state sales tax (or a state-specific substitute), registration and title fees, and the interest you pay over the life of the loan. Sales tax is set by your state — ranging from 0% in Alaska, Delaware, Montana, New Hampshire, and Oregon to over 8% in parts of Nevada and California — with a national average state rate of about 4.99%. Local county and city surcharges can push the effective rate higher, so always confirm the combined rate for your ZIP code with your state DMV or revenue department.
A critical and often-overlooked variable is the trade-in tax credit. In most states, your trade-in value is subtracted from the purchase price before sales tax is calculated, so you pay tax only on the difference — a meaningful saving when you trade in a valuable car. California and Michigan are notable exceptions that tax the full purchase price. Georgia replaced annual vehicle sales tax with a one-time Title Ad Valorem Tax (TAVT) of about 7%, North Carolina charges a 3% Highway Use Tax, and South Carolina charges a 5% Infrastructure Maintenance Fee. This calculator applies the correct rate and trade-in rule for the state you select.
Auto loan rates in 2026 average roughly 6.4%-7.0% for new cars and 7.3%-11.4% for used cars, with excellent-credit new-car buyers able to find rates around 4.0%-6.0%. The monthly payment uses a standard amortization formula: the amount financed (price minus down payment and trade-in) multiplied by the monthly rate, divided by one minus (one plus the monthly rate) to the power of minus the term. Enter the APR from your actual pre-approval or dealer quote for an accurate figure — even a one-point difference materially changes total interest over a 60- or 72-month loan.
On the selling side, the trade-in vs private-sale decision hinges on price and tax. Selling privately usually nets a higher price, but trading in saves sales tax on your replacement purchase in most states (because the trade-in reduces the taxable base) and removes the time, advertising, and buyer-negotiation burden. The selling-mode comparison quantifies the tax saving for your state so you can see the real gap between the two options.
Sales tax on a car purchase is set by your state (and sometimes city/county). Rates range from 0% in Alaska, Delaware, Montana, New Hampshire, and Oregon to over 8% in parts of Nevada and California. The national average state rate is about 4.99%. Most states subtract your trade-in value before calculating tax, but California and Michigan tax the full purchase price. This calculator applies your selected state rate and trade-in rule automatically.
In Q1-Q2 2026 the average new-car APR is roughly 6.4%-7.0% and the average used-car APR is roughly 7.3%-11.4%, depending on credit. Buyers with excellent credit can find new-car rates around 4.0%-6.0%. The interest rate field is editable — enter the APR from your actual loan quote or pre-approval for an accurate payment.
In most states yes — use tax applies to private vehicle purchases at the same rate as sales tax, collected when you register the title. A few states handle private sales differently. Always check your state DMV, because the tax is usually owed by the buyer even when no dealer is involved.
Georgia replaced annual vehicle sales tax with a one-time Title Ad Valorem Tax (TAVT) of about 7% of fair market value. North Carolina charges a 3% Highway Use Tax in place of sales tax. South Carolina charges a 5% Infrastructure Maintenance Fee (IMF) instead of sales tax on vehicles. This calculator uses these effective rates for the named states.
In most states yes — your trade-in value is subtracted from the purchase price before sales tax is calculated, so you pay tax only on the difference. On a $30,000 car with a $10,000 trade-in at 6% tax, that saves $600. California and Michigan do not offer this credit. The selling-mode comparison quantifies the saving for your state.
No. It provides planning estimates using publicly available 2026 rates and a standard loan formula. Your actual payment, tax, and fees depend on your lender, credit, local surcharges, and vehicle specifics. Confirm figures with your lender and state DMV before buying.
Your estimate uses the standard amortization formula for the monthly loan payment and United States's official 2026 sales tax, registration, and trade-in tax rules, pre-filled into the fields above. Every rate is editable so you can match your actual quote. On the sell side, the calculator compares trade-in against private-sale net proceeds.