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Sales tax on vehicle transfers varies by state. Some states exempt sales tax on car sales, while others impose it only when a vehicle is sold between a private party and a dealer, not between two private parties. Typically, a vehicle sale or transfer incurs sales tax and a title transfer fee. If a vehicle has been sold multiple times without sales tax being paid, each transfer may require sales tax payment. Buyers should ensure that no prior sales tax or title fees are outstanding before titling a vehicle in their name. Determining whether sales tax is due can be complicated, depending on past transactions.