What Is the North Carolina Highway Use Tax Rate on Vehicle Purchases?

The North Carolina highway use tax rate on vehicle purchases replaces sales tax for eligible vehicles registered in the state. When you register your vehicle’s title or transfer it from somebody else, you’ll usually pay a one-time fee of three percent of the vehicle’s purchase price to the North Carolina DMV. Learn why this fund exists courtesy of Wilkinson Chevrolet GMC.

What This Tax Does

North Carolina operates this highway use tax in lieu of a traditional sales tax to help fund road improvements in the state. Taxes gathered through this program are used by the North Carolina Department of Transportation in order to improve road quality and safety. Thus, you’re contributing toward keeping your roads well-maintained and clean.

Tax Rate

Drivers with vehicles in North Carolina are typically required to pay three percent of the car’s final purchase price as a one-time tax when you register or transfer your title. If you’ve purchased your vehicle outside of North Carolina and later register it in the state, you’ll have to pay up to $250. Certain commercial and recreational vehicles have a maximum tax amount of $2,000.

Exemptions

While the North Carolina highway use tax rate is applicable for most vehicles, there are some instances where you won’t need to pay this tax. For example, if your car is a gift to a spouse, child, parent, or sibling, you may be exempt. You can also gain an exemption if you’re correcting your title or removing a co-owner from your registration.

Learn About the North Carolina Highway Use Tax Rate on Vehicle Purchases

Want to learn more about the North Carolina highway use tax and what it will cost on your vehicle? Contact Wilkinson Chevrolet GMC today to discuss financing options for your model or explore taxes and fees.

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