What is the Sales Tax rate on a new car?
. Nevada statutes provide for a “tax credit” based on the trade-in allowance of a used car in connection with the sale of a new car. The following approach is used to calculate the total Nevada Sales Tax due on a new car deal when a trade-in is involved: 1. Multiply the full retail price of the new car (including document, smog and other fees) by the Sales Tax rate applicable in the county of the sale. 2. Multiply the trade-in allowance by the applicable tax rate in the county of sale. 3. Deduct (2) from (1) to arrive at the total amount of tax due. For example, You buy a $15,000 new car and receive $10,000 in trade-in allowance for your old car. The tax would be ($15,000 x 7%) – ($10,000 x 7%) = $350 total Sales Tax due. (Assuming a 7% applicable Sales Tax rate).
