If you buy a car online from an out-of-state vendor, what tax are you required to pay?

When you purchase a car online from an out-of-state vendor, the tax that you are required to pay is sales tax. This tax is generally applied to the purchase price of goods, including vehicles, and is mandated regardless of where the transaction takes place. Sales tax is typically collected by the vendor at the point of sale or can be paid to the state where the vehicle will be registered if it was not collected at the time of purchase.

In most cases, the sales tax rate is determined by the location where you will register the car, which may differ from the vendor's location. For example, if you buy the vehicle from a vendor in another state but register it in your home state, you may have to pay the sales tax applicable in your home state to ensure compliance with local tax laws.

In this context, property tax, income tax, and corporate tax do not apply to a vehicle purchase in the same way. Property tax is based on the value of owned property and is not applicable at the point of sale for vehicles. Income tax relates to individual earnings and has no direct relevance in this transaction. Corporate tax would apply to business profits, not personal vehicle purchases.