Motor vehicle sales tax rates differ greatly within the United States. Car tax by state often varies within counties and cities. If you are moving to another state, calculating car tax prior to moving will be useful in determining when and where to buy. However, if you are trying to avoid the car tax from your home address, then go ahead and buy a new home to park your car in because unless you own a house or live in the state in question you risk tax evasion. Car dealers and local motor vehicle registration offices must follow strict car tax guidelines. All car sales must be reported eventually (at least if you want to drive legally with a car registered in your name), and proof must be supplied if tax exemption applies.
Car tax also applies to private party sales in all states except Arizona, Georgia, Hawaii, and Nevada. To avoid taxes, you could move there and buy a car off the street. But why not move to a state without tax! New Hampshire, Montana, and Oregon have no vehicle tax at all! So if you don’t want to pay car tax, then move to one of those states… or try Alaska, but check each municipality first because some local Alaskan governments have vehicle taxes!
Another way to avoid car sales tax is to be an American Indian living on a reservation. You must actually live on the reservation and you and your salesperson must arrange for the delivery of the vehicle to happen on the Indian reservation. The Chief must authorize the purchase and sign the exemption forms, and the dealer must report to the state that the sale took place on the reservation.
Finally, you can avoid paying sales tax on your new vehicle by trading in a vehicle of equal value. However, some states* do not allow a tax credit for trade in cars, so don’t try it there.
Can I avoid paying vehicle sales tax on my new car? Unlikely!!
If you buy a car in a state without tax, then you pay the sales tax when you register the car back in your home state. Within states that have different rates for different counties and cites, you pay the rate based on your home address. So you can’t even dodge the taxes in your own neighborhood!
Bottom line: stop being a cheepo and just accept paying taxes like the rest of us.