How to Calculate Nevada Sales Tax on a New Automobile

by Leonardo R. Grabkowski

Each state has different methods of handling vehicle registrations. Some states, such as Nevada, charge a one-time sales tax on the purchase of a new or used vehicle. Other states, such as Oregon, simply require the owner to pay a small annual fee, instead of a large lump-sum payment. When shopping for a new car in Nevada, you may want to figure out how much tax you'll owe after the purchase is complete. Several factors come into play when calculating the sales-tax amount.

Determine the sales tax rate in your county. There are 17 different sales-tax rates within the state of Nevada, depending on which county you live in. The rates range from 6.85 percent to 8.1 percent. View the Nevada Sales Tax map to determine your tax rate. (See Resources.)

Note the total price of the new vehicle. Add on any additional charges, such as dealer-document fees and smog fees. These fees added to the price before calculating the tax amount.

Move the decimal point in your tax rate two places two the left. For example, change the tax rate of 7.5 percent to .075.

Multiply the total price figured in Step 2 by the fraction-tax percentage figured in Step 3. For example, if the new vehicle's price is $20,000, including fees, you would multiply 20,000 by .075. The result ($1500 in the example) is the total sales tax amount.

Determine the monetary allowance for your trade, if you have a trade. If you do not have a trade, the figure calculated in Step 4 is your final tax amount. Nevada offers a tax credit when you trade in a vehicle. Multiply the trade-in allowance (the amount you are getting for the trade) by the appropriate sales-tax rate. If you are receiving $5000 for your trade-in vehicle, and your sales-tax rate is 7.5 percent, you would multiply 5000 by .075. The result ($375 in the example) would be the amount of your tax credit.

Subtract the trade-in tax credit amount from the total tax amount figured in Step 4. The result is the amount you will owe in sales tax on the new vehicle.

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About the Author

Leonardo R. Grabkowski has been writing professionally for more than four years. Grabkowski attended college in Oregon. He builds websites on the side and has a slight obsession with Drupal, Joomla and Wordpress.

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