I am looking at buying a vehicle in Arizona, and drive it right back to Texas where I live.

What sales tax on the vehicle do I pay? Arizona is 7.55% while Texas is 6.25%. I am registering the vehicle in Texas?

6.25%

Dealer keeps telling me I have to pay their State and City tax which is 7.55%. Amounts to an $800 difference in vehicles price

If it's a dealer then yes, I would assume you pay the local tax. When you register in Texas show them all your paperwork that says you already paid sales tax in Arizona. You shouldn't owe any more in Texas.

All dealers that I spoke to about this would charge your residency sales tax. If they're not, then they probably don't do transactions like this very often.

I bought a truck from a dealership in Arizona a few years ago. I only paid Texas tax which is when I went to register it. You'll have to get a Texas inspection first once it gets here too.

They are supposed to charge the tax from the state you take delivery in from my understanding on it. You have it shipped, you would pay Texas taxes, fly in and drive it home, you pay the state tax that dealer is in.

mts6175 said:

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They are supposed to charge the tax from the state you take delivery in from my understanding on it. You have it shipped, you would pay Texas taxes, fly in and drive it home, you pay the state tax that dealer is in.

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Learned this one the hard way...

This was 10 years ago, but I bought a vehicle from a dealership in Alabama and drove it off the lot to Texas. Did not pay any Alabama taxes. I paid Texas taxes when I registered the vehicle in Texas.

I bought my truck in Mississippi from a used car dealership. The dealership wrote a check for the taxes and mailed it to my county clerk. The finance lady at the dealership called me and got the contact info of the clerk to send it to. Then I was there when lady at the county clerk's office opened the package and saw the check myself. I definitely only paid Texas sales tax.

Agree with others. Bought a truck from Minnesota and paid Colorado (where I live) sales tax.

https://www.txdmv.gov/spv-calculator

Always utilize state websites not word of mouth on a forum! I bought a vehicle out of state from a dealer and only paid TX tax.

ls1aggie09 said:

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https://www.txdmv.gov/spv-calculator

Always utilize state websites not word of mouth on a forum! I bought a vehicle out of state from a dealer and only paid TX tax.

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Yes, I bought a new car in Louisiana and the dealer did the Texas/Harris County paperwork for me. I wasn't their first Texas customer, so they had the process down. Only tax I paid was Texas tax. It did suck having to take the car in for an inspection when I got home, and only getting a 1 year tag instead of a 2 year like a Texas bought car would have had.

I had also looked into buying that same car from Tennessee, before I found the one in New Orleans. TN tax is 10%, so they were pretty jealous I was going to get away with only paying 6.25%.

vansprinkle said:

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ls1aggie09 said:

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https://www.txdmv.gov/spv-calculator

Always utilize state websites not word of mouth on a forum! I bought a vehicle out of state from a dealer and only paid TX tax.

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Yes, I bought a new car in Louisiana and the dealer did the Texas/Harris County paperwork for me. I wasn't their first Texas customer, so they had the process down. Only tax I paid was Texas tax. It did suck having to take the car in for an inspection when I got home, and only getting a 1 year tag instead of a 2 year like a Texas bought car would have had.

I had also looked into buying that same car from Tennessee, before I found the one in New Orleans. TN tax is 10%, so they were pretty jealous I was going to get away with only paying 6.25%.

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Yeah, I though that was BS too. I had to take my truck which was only five months old with 8,800 miles in for an inspection. Complete waste of time and money.