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Old 04-25-2007, 08:53 PM
 
11,715 posts, read 40,461,182 times
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In California, you pay sales tax (7.75% in my county) on the purchase price of a new or used car even if you trade you old car in. I know some states like Texas only charge sales tax on the difference. So if you bought a $20,000 car and traded in a $10,000 car, you'd only pay sales tax on $10,000. How does Colorado tax car sales?
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Old 04-25-2007, 09:06 PM
 
Location: Just south of Denver since 1989
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http://www.revenue.state.co.us/mv_di...egistrations13

In the past when I traded in a vehicle, the difference was prorated.
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Old 04-28-2007, 02:50 PM
 
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You only pay sales tax on the cash differential.

A $20K car with a $10K trade in yields a taxable amount of $10K.
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