Trade-in tax credit by state
Most of the 16 states we cover tax the price minus your trade-in; 4 don't on our example (California, Ohio, South Carolina, Virginia). The saving on a $10,000 trade-in with a $30,000 used car from a dealer:
| State | Credit? | Tax saved | Official rule |
|---|---|---|---|
| California | No | $0.00 | California taxes the full selling price; the trade-in allowance is not deducted (dealer and private). |
| Florida | Yes | $600.00 | Dealer sales: trade-in allowance deducted when traded in the same transaction. Private (casual) sales: only a traded aircraft, boat, motor vehicle or mobile home counts. |
| Georgia | Yes | $700.00 | Dealer transactions only; no trade-in credit in private sales. A leased vehicle turned in gets no trade-in credit. |
| Illinois | Yes | $625.00 | Dealer sales only: a qualified trade-in (an item the dealer is in the business of selling) is subtracted from the selling price; no cap since 2022. Private party sales (RUT-50): no trade-in deduction. |
| Missouri | Yes | $522.50 | Trade-in allowance and rebates are deducted. The same allowance applies if you SELL a vehicle privately and buy another within 180 days before or after (bring the bill of sale); only one sold vehicle counts per purchase. An insurance total-loss payout plus deductible can also be deducted if you buy a replacement within 180 days. |
| New Jersey | Yes | $662.50 | Only when trading a motor vehicle to a registered dealer that takes it for resale, with the purchase and trade signed at the same time. Several trade-ins are allowed. No trade-in credit in private sales. Manufacturer rebates do NOT reduce the taxable price; dealer discounts do. |
| New York | Yes | $700.00 | Dealer sales: the trade-in credit is deducted from the taxable amount when the dealer takes the trade-in for resale. Private sales: tax is on the total consideration (cash + debt assumed + value of property traded). |
| North Carolina | Yes | $300.00 | Allowed for dealer and private sales (any allowance given for a vehicle taken in trade). The dealer doc fee is ADDED to the base. |
| Ohio | Yes | $0.00 | ONLY when buying a new motor vehicle. A trade-in toward a used vehicle does not reduce the taxable price. Several trade-ins can be combined; the price can't go below zero. |
| Pennsylvania | Yes | $700.00 | Tax is on the price minus the value of the vehicle the seller takes in trade (dealer or private seller who takes a trade). |
| South Carolina | Yes | $0.00 | Gross proceeds exclude the trade-in value; for private sales, fair market value is defined net of any trade-in. |
| Tennessee | Yes | $700.00 | Tax is on the price minus the trade-in credit actually shown on the invoice; the trade-in must be of like kind. For a vehicle imported for use in Tennessee, the traded vehicle must have been registered in Tennessee in the importer's name. The deduction can't exceed the price. |
| Texas | Yes | $625.00 | Only a motor vehicle traded to the same seller in the same transaction counts; the value (not equity) of the trade-in is deducted. Proceeds of a private sale don't count. |
| Utah | Yes | $635.00 | Only a vehicle-to-vehicle trade in the same documented transaction between the same two parties. Selling your old car separately gives no credit (2026 H.B. 107 proposed changing this; we found no evidence it took effect). |
| Virginia | No | $0.00 | Trade-in value is NOT deducted; tax is on the full gross sales price. |
| Washington | Yes | $810.00 | Like-kind trade-ins (motor vehicle for motor vehicle) reduce the taxable price by the full agreed trade-in value, even if the trade-in has a loan. Cash back to the buyer reduces the trade-in credit. The RTA excise tax is not reduced by a trade-in. |
FAQ
Is it better to trade in or sell privately?
Where a trade-in lowers the tax, selling privately gives up that saving; compare it with the extra price you'd get. The calculator shows the saving for your numbers.
Which states give no trade-in credit?
California, Ohio, South Carolina, Virginia (on this example, from the official rules).
More guides
Trade-in tax credit by stateTax on a private car saleEV and hybrid registration feesGifting a car to familyDealer doc fees and state capsBuying a car out of stateNew resident checklistWhy our numbers are estimatesYearly car property and value taxesLate title and registration penalties
Estimates of government taxes and fees from official sources; your DMV or county calculates the final amount; not tax or legal advice. Every figure is taken from an official state page (quoted and dated in the sources) and can change. Dealer-set fees are not government fees. Exemptions are described, never applied for you: check the official rule and form.