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List of States That Do Not Tax Car Incentives

If you're lucky enough to live in a state that doesn't tax car incentives, you could save a few hundred dollars.

For example, if your state has a tax rate of 7% and there's a cash rebate of $3,500, you're looking at a savings of $245.

Here are the states that do not tax rebates:

Alaska
Arizona
Delaware
Iowa
Kentucky
Louisiana
Massachusetts
Minnesota
Missouri
Montana
Nebraska
New Hampshire
Oklahoma
Oregon
Pennsylvania
Rhode Island
Texas
Utah
Vermont
Wyoming

On a similar note, you should check to see if your state also taxes your trade-in allowance.

Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...

Best Rebates, Incentives, and Lease Deals
Latest Car Buying Scams and Tricks
The Best & Worst Time to Buy a Car
Which Cars You Should Avoid

About The Author

Gregg Fidan is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.

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