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Sales tax on vehicle transfers varies by state, with some having no sales tax on car sales. In certain states, sales tax only applies when a car is sold between a private party and a dealer, not between two private parties. Typically, a vehicle sale or transfer incurs sales tax and possibly a title transfer fee. If a vehicle has changed hands multiple times without sales tax being paid, each transfer may require sales tax. Buyers should verify if sales tax or title fees are owed from prior transfers, as this is important for titling a vehicle in their name. The calculation of sales tax depends on the applicable regulations in the buyer's state.
