How to Calculate Taxes on a New Truck
By both state and federal laws, you are entitled to pay taxes on most of the purchase you makes. These taxes include Sales tax, Gas-Guzzler Tax, usage test etc. In order to find out how much tax you will need to pay when you buy a new truck, you must know how to calculate these taxes.
Instructions
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1
In most states, sales tax is the first tax you have to pay when purchasing a new vehicle, in this case a new truck. From the state treasurer’s office or the official website, find out the sales tax rate in your state. Simply multiply the truck’s purchase price with the sales tax rate to calculate the amount of sales tax you have to pay. For example, if you bought the new truck for $10,000 and the sales tax rate in your state is 10 percent, you will have to pay $1000 as sales tax.
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2
Calculate the Gas-Guzzler Tax. This tax depends on the size of the truck. To make sure whether or not you have to pay the Gas-Guzzler Tax, browse through the manufacturer’s website or the Internal Service Revenue (IRS) official website.
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3
In some states, you have to pay a usage tax. Although it is not very common, even then it is your responsibility to contact your state treasurer in order to confirm the tax status of your purchase. In case the new truck you bought is subject to a yearly usage tax, ask the exact amount of usage tax from the treasurer’s office.
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4
You may be required to pay a certain amount of money towards registration test and its amount typically depends on size and weight of the truck. Department of Motor Vehicles will be able to guide you n further detail.
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5
It is very important for you to ask your truck manufacturer and IRS that whether you will get a fuel-efficiency tax credit or not. Furthermore, you should keep the list issued by IRS every year containing the models of the vehicles which are eligible for tax credit. Generally, tax credit is given on hybrid and diesel vehicles.
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6
Depreciation can help reduce the amount of total tax you have to pay. Divide the truck’s purchase price over the truck’s expected life span to calculate depreciation.
