Can I Buy a Car in Oregon to Avoid Sales Tax?

Oregon Sales Tax Laws

When you buy a car in Oregon, you don’t owe sales tax. Oregon relies on income and property taxes to fund infrastructure and programs. This means that Oregon residents pay some of the highest income and property taxes in the country.

Fees for Used Cars in Oregon

After buying a used car in Oregon, you’ll still need to pay registration, license, and title transfer fees in addition to the purchase price of the vehicle.

Avoiding Sales Tax

  • You can avoid paying sales tax on a used car by buying and registering the car in a state with no sales tax.
  • Another option is to move to a state without sales tax within 90 days of the vehicle purchase.

States with No Sales Tax

States with no sales tax include: New Hampshire, Oregon, Delaware, Montana, and Alaska.

Oregon Vehicle Taxes

Starting January 1, 2018, a 0.5% sales tax will be due on the retail price of any new taxable vehicles in Oregon.

Conclusion

Oregon’s lack of sales tax makes it appealing for car buyers. However, non-residents will need to register their vehicles and pay taxes in their home state.

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