The Florida car sales tax is 6% of the purchase price, plus a county discretionary surtax that runs from 0% to 2% depending on where you live. The state portion applies to the full price with no cap. The county portion only applies to the first $5,000. On a $35,000 vehicle in a county with a 1% surtax, that works out to about $2,150 in sales tax before title and registration.
The 6% State Rate
Every motor vehicle sold in Florida is taxed at 6% of the sales price. New or used, dealer or private party, the rate is the same.1Florida Legislature. Florida Code 212.05 – Sales, Storage, Use Tax There’s no ceiling on the state tax: a $20,000 car owes $1,200, a $60,000 car owes $3,600. Leased vehicles are also taxed at 6%, but the calculation runs on the gross lease payments rather than the vehicle’s price.2Florida Department of Revenue. Sales and Use Tax on Motor Vehicles
The County Surtax and Its $5,000 Cap
Most Florida counties add a discretionary sales surtax on top of the state rate. For 2026, rates run from 0% in counties like Citrus and Collier to 2% in Hamilton, with most counties landing between 0.5% and 1.5%.3Florida Department of Revenue. Discretionary Sales Surtax Information for Calendar Year 2026 Hillsborough, Duval, and Leon sit at 1.5%. Miami-Dade, Broward, and Pinellas are at 1%. Orange and Palm Beach come in at 0.5%.
The surtax rate follows the buyer’s home address, not the dealership’s location.4Florida Department of Revenue. Florida Sales and Use Tax Driving to a lower-surtax county to buy won’t help.
The important part: the county surtax only applies to the first $5,000 of the purchase price.5Florida Senate. Florida Code 212.054 – Discretionary Sales Surtax; Limitations, Administration, and Collection So on a $40,000 vehicle in a 1.5% county, the surtax portion is $75, not $600. The 6% state tax still runs on the full $40,000.
What Actually Gets Taxed
The taxable amount isn’t just the number on the window sticker. Florida treats dealer preparation fees, documentation fees, closing fees, freight charges, and commissions as part of the sales price, and all of them are fully taxable.2Florida Department of Revenue. Sales and Use Tax on Motor Vehicles Negotiate the car to $30,000 and get hit with an $899 doc fee and a $500 prep charge, and your tax runs on $31,399.
Accessories the dealer installs and rolls into the deal are also taxable. A roof rack added on the invoice, an upgraded stereo, tinted windows written into the buyer’s order: all part of the taxable base.
How a Trade-In Reduces the Tax
Trade in a vehicle and its value comes off the new car’s price before tax is calculated. Buy a $35,000 car, trade one worth $10,000, and you pay tax on $25,000. That’s $600 in state tax savings right there, plus whatever the county surtax would have added on the first $5,000.
This is the tax argument for trading in rather than selling privately. A private sale might get you a bit more cash, but you lose the deduction against your next car’s tax. On a $15,000 trade-in, the state-tax savings alone come to $900.
Negative equity complicates things. If you owe more on the old car than it’s worth and the dealer folds that shortfall into the new vehicle’s total price, that rolled-in amount can push your taxable base back up. Read how the retail buyer’s order itemizes the trade-in value and any loan payoff before signing.
Buying a Car Out of State
If you bought a vehicle in another state or moved to Florida with one, use tax rules take over. The threshold is six months. A vehicle used in another state for six months or longer before entering Florida is treated as purchased for use outside the state, and no Florida use tax applies.6Florida Department of Revenue. Motor Vehicle Sales Tax Rates by State Keep documentation of when you first used the vehicle elsewhere.
Vehicles brought in within six months of purchase owe Florida’s 6% plus the applicable county surtax, with a dollar-for-dollar credit for sales tax already paid to the other state. Paid 4% elsewhere? You owe the 2% difference. Paid 6% or more? Nothing further is due.7Florida Department of Revenue. Tax Information Publication TIP Number 26A01-01 The credit also runs against the county surtax when local taxes were paid in the other state.
Exemptions
Two exemptions come up often and get missed:
- Genuine gifts with no lien assumed by the recipient are exempt from sales tax. The new owner must claim the gift exemption on the title application (Form HSMV 82040) at transfer.8Florida Highway Safety and Motor Vehicles. Sales and Use Tax – Transfer of Motor Vehicles, Mobile Homes, and Vessels
- Title transfers between spouses on marital property are exempt regardless of whether a lien is outstanding.8Florida Highway Safety and Motor Vehicles. Sales and Use Tax – Transfer of Motor Vehicles, Mobile Homes, and Vessels
The gift exemption doesn’t extend to parents, siblings, or children by default. It only works if the transfer is truly a gift with no money changing hands and no loan assumed. A parent “selling” a car to a child for $1 doesn’t beat the system: the tax collector can assess tax on the vehicle’s fair market value instead of the stated price.
When and How You Pay
At a licensed dealership, the dealer collects the full sales tax and county surtax at the point of sale and remits it to the state as part of your closing paperwork.8Florida Highway Safety and Motor Vehicles. Sales and Use Tax – Transfer of Motor Vehicles, Mobile Homes, and Vessels You don’t make a separate trip to the tax collector.
Private-party purchases put the tax on you. You’ll pay it at the county tax collector’s office when you apply for the new title and registration.7Florida Department of Revenue. Tax Information Publication TIP Number 26A01-01 Bring the signed title, a bill of sale showing the purchase price, and payment for the full tax. The tax collector calculates the tax from the purchase price and your county of residence, and the title won’t transfer until it’s paid.
Understating the price on a bill of sale to lower the tax doesn’t reliably work. Florida tax collectors can assess tax on fair market value when the stated price looks unreasonably low, and false information on a title application brings penalties and registration delays.
A Worked Example
Say you live in Hillsborough County, where the surtax is 1.5%. You buy a used car for $28,000 with a $700 dealer fee and trade in your old car at $8,000. The taxable amount is $28,700 minus $8,000, or $20,700. State tax at 6% comes to $1,242. County surtax at 1.5% applies only to the first $5,000, adding $75. Total sales tax: $1,317. That’s before title and registration fees, which are separate line items collected at the same time. Running these numbers before you sit down at the finance desk keeps the out-the-door figure from surprising you.