What Is California Use Tax on a Vehicle?

Q: What is California use tax on a vehicle?

It's the tax due when sales tax wasn't collected on a vehicle used in California, such as a private-party or out-of-state purchase. The rate matches the sales tax rate for the registration address, and it's usually paid at DMV.

Q: Do I pay California use tax on a car bought in another state?

Often, yes. If you bring it to California within 12 months and you're a resident, register it here, or keep it here most of the time, CDTFA presumes it was bought for use in California.

Q: Is use tax the same as sales tax?

Same rate, different collector. A California seller collects sales tax; the buyer pays use tax when sales tax wasn't collected.

Use tax is the tax California charges when sales tax wasn't collected on a vehicle that's going to be used here. It applies when you buy from a private party, from an out-of-state seller, or from a California dealer that delivers the car out of state. The rate is the same as the sales tax rate for the address where you register the vehicle, and most people pay it to DMV at registration.

Educational information only. This article is not legal, tax or financial advice.

When use tax applies

Purchase	Tax
From a California dealer, delivered in California	Sales tax, collected by the dealer
From a private party	Use tax, paid by you at DMV
From an out-of-state dealer or seller	Use tax, unless the seller collected California tax
From a California dealer, delivered out of state, then brought back	Use tax may apply

The 12-month out-of-state rule

If you buy a vehicle outside California and bring it here within 12 months, CDTFA presumes you bought it for use in California, and use tax applies, if any of these is true:

You're a California resident.
The vehicle is registered with California DMV during those first 12 months.
A nonresident uses or stores it in California more than half the time during that period.

You can rebut the presumption with documents such as the purchase contract, out-of-state registration and insurance, and proof of out-of-state use. Tax paid to another state may be credited; ask CDTFA.

How to pay

Most people: pay at DMV when you register the vehicle.
If you don't register it right away: pay CDTFA directly by the last day of the month after the month of purchase.

Exemptions

Gifts, transfers from certain family members, inheritances and other involuntary transfers, some military moves, and private-party purchases bought only to take out of state. Details: Sales tax on a private-party car sale.

Frequently asked questions

Is use tax the same as sales tax?

Same rate, different collector. Sales tax is collected by a California seller; use tax is paid by the buyer when sales tax wasn't collected.

Do I pay California use tax on a car bought in another state?

Often, yes, if you bring it to California within 12 months and you're a resident, register it here, or keep it here most of the time.

What rate is California use tax on a vehicle?

The sales tax rate for the address where you register the car. Look it up with CDTFA's rate finder.

Resources

Sources: CDTFA vehicle purchaser guide (Opens in new window) (who pays, due date, 12-month presumption, exemptions). Verified 2026-10-16.

This article is for educational purposes only and is not legal, tax or financial advice. Confirm with CDTFA or a licensed tax professional.