How we calculate

Car sales tax

Taxable price = vehicle price + taxable dealer fees − trade-in (only where the state gives a trade-in credit) − manufacturer rebate (only where the state taxes the price after the rebate). Tax = taxable price × rate.

• The starting rate is the state’s vehicle rate. Where local taxes apply to vehicles, we add the average local rate from the Tax Foundation; your exact rate depends on where you register the car, so you can type it in.
• States with a separate vehicle tax (for example a title tax, highway use tax or excise tax) use that rate instead of the general sales tax.
• We cover all 51 states and DC. Each state page links to the official page used. Where a state source does not settle a rule (often rebates), the page says so and the calculator uses the more cautious choice.
• Not included: title, registration and plate fees, tire and battery fees, private-party sale rules, and special rules for leases, military buyers or business vehicles.

Car lease payment

Payment = (adjusted cap cost − residual) ÷ months + (adjusted cap cost + residual) × money factor, plus sales tax on the payment. APR ≈ money factor × 2,400. This is the standard method lenders use; your contract may add fees or handle tax differently.

Car affordability

Car budget = gross monthly income × your chosen share (15% by default). The loan payment is the budget minus insurance, gas and upkeep, and is capped so all debt payments stay under 36% of gross income. The loan amount is what that payment repays at your rate and term; the car price is the loan plus down payment and trade-in, less sales tax.

Gas cost

Fuel cost = miles ÷ MPG × price per gallon. Example tables use a sample price; enter your local price for your own result.

Sources

• Tax Foundation: State and Local Sales Tax Rates, Midyear 2026
• Each state’s revenue department or motor vehicle agency (linked on every state page)
• fueleconomy.gov (U.S. Department of Energy and EPA)

Updates

Rates are reviewed in January and July, when most rate changes take effect, and whenever a state changes its law. Last review: 2026-11-11.

These calculators give estimates for information only. They are not tax, legal or financial advice. The dealer, lender or your state motor vehicle agency sets the final amount.