In most states, you have to pay sales tax on your car purchase. Alaska, Montana, Delaware, New Hampshire, and Oregon are the exceptions to the rule. Typically, you will pay the tax based on where you register the car, and not where you buy it (if you are purchasing in another state). However, some states like California and Arizona have laws that dictate if a car is physically driven off the lot, the buyer is on the hook for the sales tax in those respective states regardless of where the buyer resides. So buyers need to factor that additional cost into their total budget.
