car taxes in NH (flat fee, sales, vehicle registration)

[mrdude]

i'm relocating from alabama to new hampshire soon and i'm planning on buying a car soon as well. i'm debating on buying the car here vs there. alabama has the third lowest taxes vs new hampshire which is the fifth most expensive.
what i would like is some information on the tax breakdown; how much is from the initial sale of the vehicle, and how much is from yearly fees. if the large majority of the taxes are just from registration and yearly fees, it would be less expensive to wait until i move, since i will be paying those fees regardless. but if a large enough portion is from the initial sale, i could save myself a considerable amount by purchasing it here.
any information is greatly appreciated.

[Was2Be]

My understanding is that there is no sales tax on car purchases in NH, but new vehicle registration is very expensive. And since you'd have to pay the same registration on your new car once you got to NH whether you buy it out of state or not, it wouldn't make any sense to buy your car before you get there. I'm moving to NH in 10 days and am planning on buying (yes, a Subaru) as soon as I get into town.

[mrdude]

Originally Posted by Was2Be

(yes, a Subaru)

same here. i've always wanted a WRX, and thanks to the snow in NH i'll finally have a good excuse to buy one

thanks

[NHDeb]

We pay "registration fees" for our cars, as well as the cost of plates to be renewed each year. The registration fee is a rate set by the value of your care (similar to excise tax in MA) and it is deductible on your federal taxes each year. The cost of plate renewal is flat and not deductible.
Buying a new car you pay a large amount in the first year for registration because the car is new and value is high - it decreases each year in costs as the value decreases.
In 2006 my husband bought a new Honda Accord - it cost us $613 to register it.

[unknown stuntman]

Be very careful in assuming what it costs to maintain a vehicle in any given state. Yes NH can have a hefty registration fee. But look at all angles: how long, difference in cost as value depreciates, etc... Look especially at how these fees are termed. NH isn't as bad as some may believe. Corrupticut I can tell you from first hand experience is much less money annually to go to to the Motor Vehicles Dept. when you pay your vehicle registration. HOWEVER, Corrupticut (and I believe Mainsane & Taxachusetts apply it the same way) is outlandish in cost when you consider your vehicle constitutes personal property tax. Yes it is absurd (why not tax the clothes I wear as personal property?) This tax is applied BI-ANUALLY in CT, while no such tax is applied in NH. I can also tell you that most car insurance you carry will run you much less than the same coverages in most other regional states. Careful to consider all factors and how these fees are labeled/imposed. It isn't nearly as bad as you may first conclude in NH.

[boby2]

Great posts I'm actually thinking of moving my car to my parents' place in NH and registering it there

but new vehicle registration

grrr they always get you somewhere

[GregW]

unknown stuntman is wrong - a car is considered private property and is taxable by the town at its current value. State fees are based on weight and size. New Hampshire is not a "tax free" as most people think.

I avoid most of this because I buy, drive and maintain old cars (generally bought at 100k miles and kept to over 250 k). If you are from Alabama be aware that the deamon salt slowly eats cars in New England. Sometimes not so slowly.

[unknown stuntman]

I'm not wrong and never implied that New Hampshire didn't tax your vehicle and on a scale. My point was how the tax is termed in different states. If it sounds like a tax, then it is a tax! The misinformation comes from those I've read and witnessed numerous times who go to BMV or DMV for the first time in a given state, pay $25-$50 (and often this is a flat fee) and assume they got off easy until that letter comes in the mail from your loving town hall. Other states charge $400 plus for what is termed a "registration fee" and its moot as to what town your are from, while it is a factor in NH. Maybe I should have been clearer as to my gripe of the terming "personal property tax". When it comes down to it, it is a tax in every state- and not cheap.
As for CT Moderator cut: removed

[kwiley1221]

As for buying a now or waiting, I am in the same situation. I think we are going to wait until we get to NH to purchase, save the sales tax and take the hit for the 'registration fees'. We'd have to pay to transfer the car into NH anyway. Not sure what that would work out to be. All in all I think it would be cheaper just to wait to get the car there. I have to pay an ad valorem here in Georgia at time of registration, so all things being equal (I pay that tax here or there), I'd rather pay it there (NH) and save the transfer fee and sales tax.

[geneus]

Originally Posted by mrdude

how much is from the initial sale of the vehicle, and how much is from yearly fees. if the large majority of the taxes are just from registration and yearly fees, it would be less expensive to wait until i move, since i will be paying those fees regardless. but if a large enough portion is from the initial sale, i could save myself a considerable amount by purchasing it here.
any information is greatly appreciated.

To answer you and following discussion:
Main yerly fee in New Hampshire is payed to the town and determined based on the manufacturer's sticker price of the car without options.
It is essentially the same as excise tax in Massachussets and some other states.
Rate is follows: 1.8% if car is manufactured this year, 1.5% second year, then 1.2%, 0.9%, 0.6%, 0.3% - and stays the same.

For comparison: in Massachussets it is 2.25%-1.5%-1%-0.625%-0.25% - and stays.

Individual towns can add some small fees $5-10 for road improvements etc.

NH State has a flat fee based on weight. For regular cars it coms to $25 a year and $37 a year for SUV.

There is no sale ta however and this gives you incentive to buy car here.