Trade-in tax credit by state
By Mr. Voltage · Data checked Oct 3, 2026 · Page changed Oct 14, 2026
Where will you register the car?
Harris County, Texas
Example quotes. Pick your place and type yours. Example: three quotes on one car in Harris County, Texas. Pick your own place and type your quotes.
Your deals at a glance
| Deal | Payment | All-in |
|---|---|---|
| $581.67a month | $39,900.30 | |
| $525.30a month | $42,821.70 | |
| $569.00a month | $39,139.72 |
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Your numbers stay in this browser.
$581.67 a month · 60 payments
All-in $39,900.30
$525.30 a month · 72 payments
All-in $42,821.70
$569.00 a month · 60 payments
All-in $39,139.72
Out-the-door $35,159.75
not counting your trade-in yet. Type this dealer’s offer.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Out-the-door $35,898.19
not counting your trade-in yet. Type this dealer’s offer.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Out-the-door $35,650.38
not counting your trade-in yet. Type this dealer’s offer.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
New · 2026 · Gas · change
New or used
The sheet starts with a new car; each deal sets its own
Model year
A new car is the current or next model year
Fuel
Gas car. Electric and hybrid cars pay more in some states
Doc fee stated on its own line
Buyer’s orders list the doc fee on its own line, which is what keeps it untaxed in Texas
New · 2026 · Gas · change
New or used
The sheet starts with a new car; each deal sets its own
Model year
A new car is the current or next model year
Fuel
Gas car. Electric and hybrid cars pay more in some states
Doc fee stated on its own line
Buyer’s orders list the doc fee on its own line, which is what keeps it untaxed in Texas
New · 2026 · Gas · change
New or used
The sheet starts with a new car; each deal sets its own
Model year
A new car is the current or next model year
Fuel
Gas car. Electric and hybrid cars pay more in some states
Doc fee stated on its own line
Buyer’s orders list the doc fee on its own line, which is what keeps it untaxed in Texas
$225.00: what Texas presumes reasonable.
Texas calls it a documentary fee.
It must be the same whether you pay cash or finance.
law.cornell.edu · checked Oct 2, 2026
The notice Texas requires with this fee
A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS RELATING TO THE SALE. A DOCUMENTARY FEE MAY NOT EXCEED A REASONABLE AMOUNT AGREED TO BY THE PARTIES. THIS NOTICE IS REQUIRED BY LAW.
$225.00: what Texas presumes reasonable.
Texas calls it a documentary fee.
It must be the same whether you pay cash or finance.
law.cornell.edu · checked Oct 2, 2026
The notice Texas requires with this fee
A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS RELATING TO THE SALE. A DOCUMENTARY FEE MAY NOT EXCEED A REASONABLE AMOUNT AGREED TO BY THE PARTIES. THIS NOTICE IS REQUIRED BY LAW.
$225.00: what Texas presumes reasonable.
Texas calls it a documentary fee.
It must be the same whether you pay cash or finance.
law.cornell.edu · checked Oct 2, 2026
The notice Texas requires with this fee
A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS RELATING TO THE SALE. A DOCUMENTARY FEE MAY NOT EXCEED A REASONABLE AMOUNT AGREED TO BY THE PARTIES. THIS NOTICE IS REQUIRED BY LAW.
Your $5,000.00 down covers the $2,459.75 in tax, title, license and the doc fee first; $2,540.25 goes toward the price.
Your $5,000.00 down covers the $2,503.19 in tax, title, license and the doc fee first; $2,496.81 goes toward the price.
Your $5,000.00 down covers the $2,400.38 in tax, title, license and the doc fee first; $2,599.62 goes toward the price.
Illustrative rate, not a quote. Your APR depends on your credit, the term, the vehicle and the lender.
Illustrative rate, not a quote. Your APR depends on your credit, the term, the vehicle and the lender.
Illustrative rate, not a quote. Your APR depends on your credit, the term, the vehicle and the lender.
60 payments, last $581.77
72 payments, last $525.40
60 payments, last $568.72
cash down plus every payment
cash down plus every payment
cash down plus every payment
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
3 charges this total leaves out
3 charges this total leaves out
3 charges this total leaves out
The trade-in tax credit in every state and DC
One row for each state and DC: whether the trade-in allowance lowers the amount taxed, and the rule in words, including any limit or condition, and whether the credit holds when you owe more on the trade-in than it is worth.
Every entry shows where it comes from and the day it was checked, and the newest check on this page was Oct 3, 2026. 34 of the 102 entries rest on a source that is not confirmed yet, and each says so.
| State | Trade-in credit | If you owe on the trade-in |
|---|---|---|
| Alabama | Full credit The trade-in allowance comes off the taxable price. revenue.alabama.gov · checked Oct 3, 2026 | Full credit still applies The full trade-in allowance comes off the taxable price; what you still owe on the trade goes into the new loan. Unverified alison.legislature.state.al.us · checked Oct 3, 2026 |
| Alaska | No credit The trade-in does not lower the taxable price. Unverified akleg.gov · checked Oct 3, 2026 | No tax on the price No tax applies to the price, so money you still owe on a trade-in only adds to your loan. Unverified akleg.gov · checked Oct 3, 2026 |
| Arizona | Full credit The trade-in allowance comes off the taxable price. azleg.gov · checked Oct 3, 2026 | Full credit still applies The full trade-in value comes off the taxable price even if you still owe money on the trade. azdor.gov · checked Oct 3, 2026 |
| Arkansas | Full credit The trade-in allowance comes off the taxable price. law.justia.com · checked Oct 2, 2026 | Full credit still applies Tax is on the price minus the full trade-in allowance; what you still owe on the trade isn’t part of the car’s price. Unverified codeofarrules.arkansas.gov · checked Oct 2, 2026 |
| California | No credit The trade-in does not lower the taxable price. cdtfa.ca.gov · checked Oct 2, 2026 | No trade-in credit California gives no trade-in credit, so the full price is taxed either way; what you still owe on the trade only adds to the amount financed. Unverified cdtfa.ca.gov · checked Oct 2, 2026 |
| Colorado | Full credit The trade-in allowance comes off the taxable price. tax.colorado.gov · checked Oct 3, 2026 | Full credit still applies The trade-in’s value comes off the taxable price; what you still owe on it is added to the loan. Unverified tax.colorado.gov · checked Oct 3, 2026 |
| Connecticut | Full credit The trade-in allowance comes off the taxable price. cga.ct.gov · checked Oct 3, 2026 | Full credit still applies The trade-in credit is the full allowance, and what you still owe on the trade rolls into the loan untaxed. portal.ct.gov · checked Oct 3, 2026 |
| Delaware | Credit up to a limit The trade-in allowance comes off the taxable price when the trade-in is titled in Delaware. The credit can’t be more than the document fee paid on the trade-in when it was titled. delcode.delaware.gov · checked Oct 3, 2026 | Full credit still applies The full trade-in allowance comes off the price; a loan payoff rolled into the new loan is not part of the price the fee is figured on. Unverified delcode.delaware.gov · checked Oct 3, 2026 |
| Florida | Full credit The trade-in allowance comes off the taxable price. flsenate.gov · checked Oct 2, 2026 | Full credit still applies The full trade-in allowance comes off the taxable price; what you still owe on the trade is financed and does not reduce the credit. Unverified flsenate.gov · checked Oct 2, 2026 |
| Georgia | Full credit The trade-in allowance comes off the taxable price. law.justia.com · checked Oct 2, 2026 | Full credit still applies The trade-in value shown on the bill of sale comes off in full; what you still owe on the trade is added to the loan, not the taxed price. Unverified law.justia.com · checked Oct 2, 2026 |
| Hawaii | No credit The trade-in does not lower the taxable price. One detail unverified data.capitol.hawaii.gov · checked Oct 3, 2026 | No trade-in credit On a Hawaii dealer sale the tax is on the full price with no trade-in credit, so what you owe on your trade does not change it. Unverified files.hawaii.gov · checked Oct 3, 2026 |
| Idaho | Full credit The trade-in allowance comes off the taxable price. legislature.idaho.gov · checked Oct 3, 2026 | Full credit still applies The credit is the amount the dealer allows for your trade; what you owe on it is a debt and does not reduce the credit. files.dfm.idaho.gov · checked Oct 3, 2026 |
| Illinois | Full credit The trade-in allowance comes off the taxable price. ilga.gov · checked Oct 2, 2026 | Full credit still applies Your trade-in counts at the value the dealer gives it, however much you still owe on it. ilga.gov · checked Oct 2, 2026 |
| Indiana | Full credit The trade-in allowance comes off the taxable price. in.gov · checked Oct 3, 2026 | Full credit still applies The full trade-in value comes off the taxable price, and what you still owe on the trade-in doesn’t change that. in.gov · checked Oct 3, 2026 |
| Iowa | Full credit The trade-in allowance comes off the taxable price. legis.iowa.gov · checked Oct 3, 2026 | Full credit still applies The full trade-in allowance comes off; what you owe on the traded car does not matter. legis.iowa.gov · checked Oct 3, 2026 |
| Kansas | Full credit The trade-in allowance comes off the taxable price. ksrevisor.gov · checked Oct 3, 2026 | Full credit still applies The trade-in allowance comes off the taxable price, and what you still owe on the trade-in isn’t added back. Unverified ksrevenue.gov · checked Oct 3, 2026 |
| Kentucky | Full credit The trade-in allowance comes off the taxable price. revenue.ky.gov · checked Oct 3, 2026 A second source reads this differently and was not followed: logancountyclerk.ky.gov. | Full credit still applies The trade-in credit is the value the dealer assigns to your trade, and what you still owe on it isn’t subtracted. Unverified apps.legislature.ky.gov · checked Oct 3, 2026 |
| Louisiana | Full credit The trade-in allowance comes off the taxable price. public.powerdms.com · checked Oct 3, 2026 | Full credit still applies Tax is figured on the price minus the trade-in credit, and what you still owe on the trade-in doesn’t reduce that credit. public.powerdms.com · checked Oct 3, 2026 |
| Maine | Full credit The trade-in allowance comes off the taxable price. legislature.maine.gov · checked Oct 3, 2026 | Full credit still applies Tax is figured on the price minus the full trade-in allowance; the loan you still owe on the trade-in does not appear in that sum. Unverified legislature.maine.gov · checked Oct 3, 2026 |
| Maryland | Full credit The trade-in allowance comes off the taxable price. mgaleg.maryland.gov · checked Oct 3, 2026 | Full credit still applies You get the full trade-in allowance even if you owe more on the trade-in than it’s worth. regs.maryland.gov · checked Oct 3, 2026 |
| Massachusetts | Full credit The trade-in allowance comes off the taxable price. malegislature.gov · checked Oct 3, 2026 | Full credit still applies Tax is figured on the price minus the dealer’s trade-in allowance, and what you still owe on the trade-in isn’t added back. Unverified malegislature.gov · checked Oct 3, 2026 |
| Michigan | Credit up to a limit The trade-in allowance comes off the taxable price, up to $12,000. legislature.mi.gov · checked Oct 3, 2026 | Full credit still applies The trade-in credit is the agreed value of the trade (up to the yearly limit), not your equity, so owing more than the trade is worth doesn’t cut it. michigan.gov · checked Oct 3, 2026 |
| Minnesota | Full credit The trade-in allowance comes off the taxable price. revisor.mn.gov · checked Oct 3, 2026 | Full credit still applies The full trade-in value the dealer allows comes off the price before tax, and the loan you still owe on the trade-in does not reduce it. Unverified revisor.mn.gov · checked Oct 3, 2026 |
| Mississippi | Full credit The trade-in allowance comes off the taxable price. sos.ms.gov · checked Oct 3, 2026 | Full credit still applies Tax is figured on the price minus the amount allowed for the trade-in, not your equity, so the loan you still owe on it does not reduce the credit. Unverified codes.findlaw.com · checked Oct 3, 2026 |
| Missouri | Full credit The trade-in allowance comes off the taxable price. revisor.mo.gov · checked Oct 2, 2026 | Full credit still applies Tax is figured on the price minus the full trade-in allowance, whatever you still owe on the trade-in. Unverified revisor.mo.gov · checked Oct 2, 2026 |
| Montana | No price-based tax No tax on the price, so a trade-in changes no tax or fee. revenue.mt.gov · checked Oct 3, 2026 | No tax on the price There is no tax on the price, so a trade-in loan changes no tax; the dealer must pay off the trade’s loan, and any shortfall is added to your new contract. mca.legmt.gov · checked Oct 3, 2026 |
| Nebraska | Full credit The trade-in allowance comes off the taxable price. nebraskalegislature.gov · checked Oct 3, 2026 | Full credit still applies Yes, the full trade-in allowance comes off the price, and the loan payoff the dealer makes is not added to the taxed price. revenue.nebraska.gov · checked Oct 3, 2026 |
| Nevada | Full credit The trade-in allowance comes off the taxable price. leg.state.nv.us · checked Oct 3, 2026 | Full credit still applies The full trade-in allowance comes off the taxable price even if you owe more than the trade is worth; the payoff goes into the loan, not the price. Unverified tax.nv.gov · checked Oct 3, 2026 |
| New Hampshire | No price-based tax No tax on the price, so a trade-in changes no tax or fee. gc.nh.gov · checked Oct 3, 2026 | No tax on the price There is no sales tax here, so there is no trade-in tax credit to keep; what you owe on the trade goes into the loan and is listed as an amount paid to others. gc.nh.gov · checked Oct 3, 2026 |
| New Jersey | Full credit The trade-in allowance comes off the taxable price. nj.gov · checked Oct 3, 2026 | Full credit still applies Yes, the credit is the trade-in amount the dealer gives you, and the payoff of the old loan is not added to the taxed price. One detail unverified nj.gov · checked Oct 3, 2026 |
| New Mexico | Full credit The trade-in allowance comes off the taxable price. nmonesource.com · checked Oct 3, 2026 | Full credit still applies Yes, the full trade-in allowance comes off the price, and what you still owe on the old loan doesn’t change that. srca.nm.gov · checked Oct 3, 2026 |
| New York | Full credit The trade-in allowance comes off the taxable price. tax.ny.gov · checked Oct 3, 2026 | Full credit still applies If you pay off the old loan, even by borrowing more on the new one, you still get the full trade-in credit; if the dealer takes the trade with the loan still on it, the credit is only your equity. tax.ny.gov · checked Oct 3, 2026 |
| North Carolina | Full credit The trade-in allowance comes off the taxable price. ncleg.gov · checked Oct 2, 2026 | Full credit still applies Yes, the tax comes off the full trade-in allowance, and what you still owe on the old loan doesn’t change that. Unverified ncleg.gov · checked Oct 2, 2026 |
| North Dakota | Full credit The trade-in allowance comes off the taxable price. ndlegis.gov · checked Oct 3, 2026 | Full credit still applies Yes, the full trade-in allowance comes off the price, and what you still owe on the old loan doesn’t change that. ndlegis.gov · checked Oct 3, 2026 |
| Ohio | New vehicles only The trade-in allowance comes off the taxable price on a new vehicle only. codes.ohio.gov · checked Oct 2, 2026 | Full credit still applies The trade-in credit, which applies only when a new car is bought from a new-car dealer, is the dealer’s full allowance, and negative equity isn’t taxed unless the dealer adds it into the car’s price. tax.ohio.gov · checked Oct 2, 2026 |
| Oklahoma | Partial credit The trade-in does not lower the motor vehicle excise tax. Its allowance comes off the price for the Oklahoma vehicle sales tax. Unverified oklahoma.gov · checked Oct 3, 2026 | A different rule The excise tax gives no trade-in credit at all, while the smaller sales tax takes off the trade’s full value, and owing money on the trade doesn’t appear to change either one. Unverified oklahoma.gov · checked Oct 3, 2026 |
| Oregon | No credit The trade-in does not lower the taxable price. oregon.gov · checked Oct 3, 2026 | No trade-in credit There’s no trade-in credit against the tax, so there’s nothing for negative equity to reduce; negative equity must be clearly shown on the purchase order and contract. Unverified secure.sos.state.or.us · checked Oct 3, 2026 |
| Pennsylvania | Full credit The trade-in allowance comes off the taxable price. pacodeandbulletin.gov · checked Oct 3, 2026 | Full credit still applies The full trade-in allowance comes off the taxed price even if you owe more than the trade is worth, as long as the trade happens at the same time as the sale. palegis.us · checked Oct 3, 2026 |
| Rhode Island | Full credit The trade-in allowance comes off the taxable price. webserver.rilegislature.gov · checked Oct 3, 2026 | Full credit still applies The full trade-in allowance comes off the taxed price even when you owe more than the car is worth, because the payoff goes into your loan, not the price; no state source says this in so many words. rules.sos.ri.gov · checked Oct 3, 2026 |
| South Carolina | Full credit The trade-in allowance comes off the taxable price. scstatehouse.gov · checked Oct 3, 2026 | Full credit still applies The full trade-in allowance likely comes off even when you owe more than the car is worth, because the payoff is part of your loan; no state agency says so in writing. Unverified scstatehouse.gov · checked Oct 3, 2026 |
| South Dakota | Full credit The trade-in allowance comes off the taxable price. sdlegislature.gov · checked Oct 3, 2026 | Full credit still applies The full trade-in allowance likely comes off even when you owe more than the car is worth, as long as the payoff goes into your loan and not into the car’s price; no state source says so in words. Unverified sdlegislature.gov · checked Oct 3, 2026 |
| Tennessee | Full credit The trade-in allowance comes off the taxable price. codes.findlaw.com · checked Oct 2, 2026 | Full credit still applies The trade-in credit is likely the full allowance, so what you still owe isn’t added to the taxed price; no state source says this in words. Unverified codes.findlaw.com · checked Oct 2, 2026 |
| Texas | Full credit The trade-in allowance comes off the taxable price. statutes.capitol.texas.gov · checked Oct 2, 2026 | Full credit still applies The credit is the trade-in’s value, not your equity, so owing money on it doesn’t shrink the credit, and the payoff isn’t taxed. comptroller.texas.gov · checked Oct 2, 2026 |
| Utah | Full credit The trade-in allowance comes off the taxable price. le.utah.gov · checked Oct 3, 2026 | Full credit still applies The trade-in credit is likely the full allowance, with what you still owe going into your loan rather than the taxed price; the state says this only for leases. Unverified files.tax.utah.gov · checked Oct 3, 2026 |
| Vermont | Full credit The trade-in allowance comes off the taxable price. legislature.vermont.gov · checked Oct 3, 2026 | Full credit still applies The trade-in credit is the full value the dealer allows for your trade, even if you still owe money on it; the payoff goes into your loan, not the taxed price. Unverified legislature.vermont.gov · checked Oct 3, 2026 |
| Virginia | No credit The trade-in does not lower the taxable price. law.lis.virginia.gov · checked Oct 2, 2026 | No trade-in credit There’s no trade-in credit here at all: tax is on the full price of the car you buy, so what you owe on your trade-in doesn’t change the tax. Unverified law.lis.virginia.gov · checked Oct 2, 2026 |
| Washington | Full credit The trade-in allowance comes off the taxable price. app.leg.wa.gov · checked Oct 3, 2026 | Full credit still applies You get credit for the full trade-in value even if you still owe a loan on the trade. app.leg.wa.gov · checked Oct 3, 2026 |
| District of Columbia | No credit The trade-in does not lower the taxable price. Unverified code.dccouncil.gov · checked Oct 3, 2026 | No trade-in credit There is no trade-in credit at all, because the tax is figured on the book value of the car you buy; what you owe on your trade only changes the loan. Unverified code.dccouncil.gov · checked Oct 3, 2026 |
| West Virginia | Full credit The trade-in allowance comes off the taxable price when the trade-in is titled in West Virginia. code.wvlegislature.gov · checked Oct 3, 2026 | Full credit still applies Tax is figured on the price minus the trade-in value, and what you still owe on the trade isn’t added to the taxed price. One detail unverified webapps.transportation.wv.gov · checked Oct 3, 2026 |
| Wisconsin | Full credit The trade-in allowance comes off the taxable price. docs.legis.wisconsin.gov · checked Oct 3, 2026 | Full credit still applies The trade-in credit is the full allowance; a loan you still owe on the trade doesn’t reduce it. revenue.wi.gov · checked Oct 3, 2026 |
| Wyoming | Full credit The trade-in allowance comes off the taxable price. wyoleg.gov · checked Oct 3, 2026 | Full credit still applies The full trade-in allowance comes off the taxed price; what you still owe on the trade goes into your loan instead. Unverified drive.google.com · checked Oct 3, 2026 |
Questions people ask
Does a trade-in lower the sales tax on a car?
It depends on the state. In 39 states the trade-in allowance comes off the amount taxed, so the tax is figured on the difference; some of those states attach conditions, which the table spells out. In the others the rule is different. No credit: Alaska (unverified), California, the District of Columbia (unverified), Hawaii (one detail unverified), Oregon and Virginia. Credit up to a limit: Delaware and Michigan. Partial credit: Oklahoma (unverified). New vehicles only: Ohio. No price-based tax: Montana and New Hampshire. Each state’s row in the trade-in table gives its rule in words, with its source and the day it was checked.
Which states give no trade-in tax credit?
In 6 jurisdictions the trade-in does not lower the amount taxed: Alaska (unverified), California, the District of Columbia (unverified), Hawaii (one detail unverified), Oregon and Virginia. Montana and New Hampshire have no tax on the price, so a trade-in changes nothing there. Each row of the table says what the state’s rule is, with its source and the day it was checked.
Is there a cap on the trade-in tax credit?
In Delaware and Michigan the credit stops at a limit. Delaware: the trade-in allowance comes off the taxable price when the trade-in is titled in Delaware. The credit can’t be more than the document fee paid on the trade-in when it was titled. Michigan: the trade-in allowance comes off the taxable price, up to $12,000. The other rows of the table give each state’s rule in words, with its source and the day it was checked.
Does the credit still apply if I owe money on my trade-in?
Owing more on the trade-in than it is worth is called negative equity. The most common rule, in 42 jurisdictions, is “full credit still applies”. No trade-in credit: California (unverified), the District of Columbia (unverified), Hawaii (unverified), Oregon (unverified) and Virginia (unverified). No tax on the price: Alaska (unverified), Montana and New Hampshire. A different rule: Oklahoma (unverified). Each state’s row in the table says what its rule is, with its source and the day it was checked.
Does the trade-in credit apply when I buy a used car?
It depends on the state. Ohio give the credit on new vehicles only. In the other states, read the row for your state: it says what the credit is and any condition on it, with its source and the day it was checked.