Tax Implication on a brand new car bought on the mainland

[89speedy]

Originally Posted by whtviper1

Let's clarify:

A Hawaii resident flies to the mainland to buy a new or used car from a dealership, which can often save money even with shipping, and you immediately ship to Hawaii - you only pay the Hawaii taxes.

A Hawaii resident flies to the mainland and buys a used car from a private seller and ships it to the mainland. You do not pay Hawaii taxes.

http://files.hawaii.gov/tax/legal/br...e_brochure.pdf

Thank you for the answers! But what if I paid 8% tax in Washington, when registering in Hawaii would I be exempt from Hawaii tax? If I paid 2% tax on the mainland, would I then have to pay the Hawaii tax less 2%?

[whtviper1]

Originally Posted by 89speedy

Thank you for the answers! But what if I paid 8% tax in Washington, when registering in Hawaii would I be exempt from Hawaii tax? If I paid 2% tax on the mainland, would I then have to pay the Hawaii tax less 2%?

The tax is paid where you register the car. If you buy a car from a dealership in Washington and intend to ship it immediately, you won’t pay Washington tax, just Hawaii tax.