How car sales tax works in Ohio
Ohio's vehicle tax depends on where you live and whether the car is new. The rate is the state's 5.75% plus your county's permissive and transit taxes, using the county of your residence. The October 2026 rate map shows combined rates from 6.50% (Butler, Lorain, Stark and Wayne counties) to 8.0% (Cuyahoga and Franklin counties).
The trade-in rule is unusual: a trade-in reduces the taxable price only when you buy a new vehicle. On a used car, you pay tax on the full price even if you trade one in.
Worked example
For the new car, the amount financed is $35,000 + $2,000 − $5,000 − $10,000 = $22,000, with $4,137.57 of interest over 60 months.
Ohio rules to know
- County of residence. Your county's rate applies, not the dealer's.
- Trade-in credit on new vehicles only. Choose "Used" in the calculator to see the tax without the credit.
- New or used is the BMV's call. The Department of Taxation follows the Bureau of Motor Vehicles' determination.
- Rebates don't reduce the tax. A manufacturer rebate is part of the price the tax is based on; a cash discount from the dealer at the time of sale does lower it.
- Fees are separate. Title fees aren't included.
Planning an Ohio car purchase
If you're trading in a car and deciding between new and used, include the trade-in tax credit in the comparison: on a used car it's lost. Selling your old car privately may make more sense when buying used. Compare terms in the main car loan calculator and check affordability with the Ohio paycheck calculator.
New or used: how the trade-in rule changes the math in Ohio
If you're buying new, a $10,000 trade-in saves 8% of $10,000, or $800, in Franklin County, so trading in usually beats a private sale unless the private buyer pays a lot more. If you're buying used, the trade-in saves no tax at all, so selling your old car privately for more than the dealer offers is pure gain.
Your county rate matters too. Between the lowest rate on the October 2026 map (6.50%) and the highest (8.0%), the tax on a $35,000 car differs by $525. Enter your own county's add-on above the 5.75% state rate in the calculator.
Paying the tax upfront or financing it
If you add Ohio's sales tax to the loan, as in the new-car example, the $2,000 of tax is part of the $22,000 you finance and you pay interest on it too. Putting that amount toward your down payment instead lowers the amount financed to $20,000. Try a larger down payment in the calculator to see how the monthly payment and total interest change.