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In most states sales tax is based on the county you live in. When you buy a used car you must pay the sales tax because you are purchasing a non food item. Even though the person who originally bought it paid sales tax. If you go to a pawn shop and buy a used TV. you still have to pay sales tax. Also in most states what ever Dealer Fee or Service Fee is applied even though it is basically covering overhead and profit for the dealer is considered a service and where services are taxable it is taxed as well. Also keep in mind that the most states do not allow dealers to negotiate Dealer Fees or Service Fees but you can negotiate the price of the vehicle for the amount of the Fee.

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Q: Why do you pay sales tax on used cars?
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