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Sales tax on vehicle transfers varies by state; some states impose no tax, while others do based on the type of transfer, such as between private parties or dealers. Typically, a sale or transfer triggers the need for sales tax and a title transfer fee. If a vehicle has been sold multiple times without tax being paid, each transfer may require sales tax. Buyers should verify if any sales tax or title fees are outstanding before titling the vehicle in their name, as this could be unclear. The calculation of sales tax depends on the specific state regulations, emphasizing the importance of understanding local laws in vehicle transactions.
