Vehicle purchases are among the largest transactions in Ohio, which means they can result in a significant sales tax payment. Ohio charges a 5.75% state sales tax on all automobile purchases. There are additional county taxes, which can reach 2%. A 199-dollar documentation service fee may also be charged by some dealerships.
- Aside from taxes, automobile purchases in Ohio may be subject to other expenses such as registration, title, and plate fees.
- Because the value of your trade-in is not subject to sales tax in Ohio, the taxable price of your new car will be $5,000. This means you avoid the sales taxes you would have had to pay on the $5,000 worth of your trade-in.
- Dealerships may also charge a documentation fee, sometimes known as a “doc fee,” to cover the costs of completing and filing the sales contract, sales tax forms, and so on. These fees are in addition to the taxes and DMV fees mentioned above.
- The average doc charge in Ohio is $250, and dealer doc costs are limited to one. Because these costs are imposed by the dealerships rather than the government, they might differ from one dealership to the next or even from one car to the next.