How do I calculate and pay California use tax on a vehicle I purchased in another state and brought to California?

You must pay California use tax on a vehicle purchased in another state when you register it with the California DMV. The amount is based on your vehicle's purchase price and the sales tax rate at your California address. Here is how to calculate and pay the tax: Step 1: Determine Your Use Tax Rate Find the total sales and use tax rate for the California city or county where you will register the vehicle. You can look this up on the California Department of Tax and Fee Administration (CDTFA) website by entering your address. The use tax rate is the same as the sales tax rate. Step 2: Calculate the Tax Due Multiply the vehicle's full purchase price by your local use tax rate. The purchase price includes the cost of the vehicle and any separately stated accessories, modifications, or warranties you bought from the seller at the same time. Step 3: Apply for a Tax Credit If you paid sales tax to the state where you bought the vehicle, you may receive a credit. This credit is for the amount of tax you already paid, up to the amount of California use tax you owe. For example, if you paid 5% sales tax in Arizona and your California use tax rate is 8.75%, you would owe the 3.75% difference to California. Step 4: Gather Your Documents Collect your out-of-state title or registration card, the bill of sale or purchase contract showing the vehicle's price, and proof of any sales tax you paid to the other state. The purchase contract should list the sales tax as a separate line item. Step 5: Register the Vehicle and Pay You must register your vehicle at a California DMV office within 20 days of bringing it into the state. The DMV will verify your documents, calculate the final use tax owed (including any credits), and collect the payment along with your registration fees. Important Considerations: California law presumes that if you bring a vehicle into the state within 90 days of purchasing it, it was bought for use in California, and use tax is due. You cannot get a refund from California if the tax you paid to another state was higher than the California use tax. Warnings and Limitations: Failing to register the vehicle and pay use tax on time will result in penalties. These rules apply to vehicles purchased from dealers and private parties. The rules for vehicles received as gifts or inheritances are different. This is general information and does not constitute legal advice. For complex situations, such as those involving business vehicles or unique purchase circumstances, consult with a qualified California attorney.