If you purchase a used car from an out-of-state, private party do you have to pay sales tax twice?
Sales tax upon the purchase of an item that is as big as a car can be a bit tricky, sometimes. In this particular case when you purchase a car from any person that is a third party and not a seller from a dealership, you do not pay sales tax upon the initial transaction. You actually end up paying your sales tax when you go to your local DMV and register your car in your name, in whichever state you reside in. When you do that you will only be paying for sales tax one time and one time only. Now if, for whatever reason, you decide to register your car under your name in two states (not likely you would), then you would have to pay sales tax on the car a second time. Again, nobody really does that anyways, so you should be fine. Note that it does not matter who you buy the car from. It can be from your mother, father, spouse, friend, or even a complete stranger. Just as long as it is a private, third-party seller, that's what you need to do.