The following is a Motor Vehicle Sales/Use Tax Reciprocity and Rate Chart which you may find helpful in determining the Sales/Use Tax liability of your customers who either purchase vehicles outside of Massachusetts for use here or for people who move to Massachusetts from another state. 02/11 Alabama Yes 1 2.00% No Yes Alaska N/A 2, unless the vehicle is to be first registered in AK N/A N/A N/A Arizona Yes 6.60% Yes Yes Arkansas Yes 3 6.00 No Yes California Yes 8.25% Yes No Colorado Yes 4 2.90% No Yes Connecticut Yes 6.00 No, unless the Yes purchaser has property or a business in CT Delaware Yes 5 Limited 3.75 No Yes District of Yes 6.00 No Yes Columbia Florida Yes 6.00 Yes Yes Georgia Yes 4.00 No Yes Hawaii Yes 6 4.00 Yes Yes Idaho Yes 6.00 No Yes Illinois Yes 6.25 Yes Yes Indiana Yes 7.00 Yes Yes 9:101
Iowa Yes 6.00 No Yes Kansas Yes 6.30 Yes** Yes Kentucky Yes 7 6.00 No No Louisiana Yes 8 4.00 No Yes Maine Yes 5.00 No on motor vehicles, Yes on boat, utility and snowmobile trailers Maryland No 9 6.00 No Yes Michigan Yes 6.00 Yes No Minnesota Yes 6.875 No Yes Mississippi No 10 3.00-7.00 No Yes Missouri Yes 11 4.225 No Yes Montana No 12 N/A No N/A Nebraska Yes 5.50 No Yes Nevada Yes 6.85 No No New No 13 N/A No N/A Hampshire New Jersey Yes 7.00 No Yes New Mexico Yes 5.125 Yes Yes New York Yes 14 4.00 No Yes No. Carolina Yes 5.75 No Yes No. Dakota Yes 5.00 No Yes Ohio Yes 5.50 Yes Yes Oklahoma No 4.50 No No Yes 9:102
Oregon No 15 N/A No N/A Pennsylvania Yes 6.00 No Yes Rhode Island Yes 7.00 Yes Yes So. Carolina Yes 6.00 Yes Yes So. Dakota Yes 4.00 No Yes Tennessee Yes 7.00 No Yes Texas Yes 6.25 No Yes Utah Yes 16 4.70 No Yes Vermont Yes 6.00 No Yes Virginia Yes 5.00 No No Washington Yes 6.50 No Yes West Virginia No 6.00 No Yes Wisconsin Yes 5.00 No Yes Wyoming Yes 17 4.00 Yes Yes American N/A N/A N/A N/A Samoa Guam N/A N/A N/A N/A Puerto Rico N/A N/A N/A N/A US Virgin Islands N/A N/A N/A N/A 1 Alabama - is also allowed for local sales tax 2 Alaska - has no statewide sales tax, but has more than 100 local jurisdictions applying nine different sales tax rates (from no tax to 7%). MA will give credit for any sales taxes actually paid these jurisdictions. 9:103
3 Arkansas - denies any credit for sales taxes paid to other states on motor vehicles, trailers, and semi-trailers that the purchaser first registers in Arkansas. MA will not credit any taxes similarly paid to Arkansas whenever MA is the first state of registration for that purchaser. 4 Colorado - is also allowed for local sales tax. 5 Delaware - has a limited credit for taxes paid elsewhere. Accordingly MA will grant a credit only when an owner registers his motor vehicle in MA within ninety days after paying Delaware s 3.75% registration fee on the vehicle. 6 Hawaii - exempts non-dealer casual sales. 7 Kentucky - **Kentucky sales tax is due on purchases in Kentucky by resident of those states that assess sales tax on purchases made by Kentucky residents. 8 Louisiana - is also allowed for local sales tax. 9 Maryland - The motor vehicle exemption is effectively limited to vehicles previously registered and titled in Maryland by owners who have been MA residents for 60 days or less. This exemption cannot reduce any MA use tax liability below $100. 10 Mississippi - Non-s are not taxed if the vehicle is removed from Mississippi within 48 hours. 11 Missouri - is also allowed for local sales tax. 12 Montana - does not have a sales tax. 13 New Hampshire - does not have a sales tax. 14 New York - is also allowed for local sales tax. 15 Oregon - does not have a sales tax. 16 Utah - is also allowed for local sales tax. 9:104
17 Wyoming - is also allowed for local sales tax. Out of State Dealers-Trade In : A trade-in credit is only permitted as a reduction to the taxable sales price for out-of-state dealer/lessors sales when: The purchaser either previously paid a tax on the vehicle traded-in or is exempt from tax on the vehicle traded-in AND: The out of state dealer/lessor is registered with the Massachusetts Department of Revenue OR The dealer s/lessor s state or territory imposes a tax on nonresidents, AND that state or territory is reciprocal with Massachusetts AND that state or territory permits a trade-in credit as a reduction to the taxable sales price. 02/11 9:105