Florida Motor Vehicle Sales Tax: Understanding Rates and Exemptions for Nonresidents

Important Update: Revised Tax Information Publication (TIP 25A01-01R)

The Florida Department of Revenue issued Tax Information Publication (TIP 25A01-01R) on January 31, 2025, revising the previous version released on January 15, 2025. The revision corrects incorrect information regarding Louisiana’s tax rate in the attached rate chart. This updated TIP ensures accuracy for nonresident vehicle purchasers in Florida and clarifies applicable state tax rates.

This article provides a comprehensive breakdown of Florida’s taxation rules for nonresident vehicle purchases, details on partial exemptions, and a state-by-state tax rate chart.

Florida’s Sales Tax Rules for Nonresident Vehicle Purchasers

How Much Sales Tax is Owed?

• If a nonresident purchases a vehicle in Florida, they typically owe Florida’s 6% state sales tax unless their home state has a lower rate.

• If the nonresident’s home state has a lower tax rate than Florida’s 6%, the Florida dealer can collect tax at the home state’s rate.

• If the home state’s tax rate is higher than 6%, the Florida tax remains at 6%, and the buyer may owe additional tax when registering the vehicle in their home state.

Partial Sales Tax Exemption

Nonresidents may qualify for a partial exemption if:

1. They purchase a vehicle in Florida.

2. They intend to register it in their home state within 45 days.

3. They complete Form DR-123, affirming their intent to title and register the vehicle outside Florida.

However, corporations and partnerships are not eligible for this exemption if:

• An officer of the corporation is a Florida resident.

• A stockholder owning at least 10% is a Florida resident.

• A partner with at least 10% ownership is a Florida resident.

For these entities, the exemption is only granted if the vehicle is removed from Florida within 45 days and remains outside the state for 180 days.

States That Do Not Allow a Credit for Florida Sales Tax

• Arkansas, Mississippi, and West Virginia do not allow a credit for sales tax paid to Florida.

• Oklahoma requires residents to pay sales tax and excise tax but offers a refund for sales tax paid in Florida (up to the Oklahoma tax rate).

If you are a resident of these states, you may have to pay double tax—once in Florida and again when registering your vehicle at home.

Bringing an Out-of-State Vehicle into Florida

• If a vehicle is purchased outside Florida and then titled or registered in Florida, Florida’s 6% use tax applies.

• A credit is granted for sales tax paid in another state—if the tax paid is equal to or greater than Florida’s tax rate, no additional tax is due.

• If the vehicle was used outside Florida for at least six months, it is presumed to have been purchased for out-of-state use, and no Florida use tax applies.

Motor Vehicle Sales Tax Rates by State (as of January 15, 2025, per Revised TIP 25A01-01R)

The table below provides the state-by-state breakdown of motor vehicle sales tax rates and whether Florida allows a credit for tax paid in another state.

Key Takeaways

• The revised TIP 25A01-01R corrects the tax rate for Louisiana.

• Nonresidents purchasing vehicles in Florida may owe tax based on their home state’s rate.

• A partial exemption is available for out-of-state buyers who register the vehicle within 45 days.

• Some states do not allow a tax credit for Florida sales tax, potentially leading to double taxation.

• Vehicles used outside Florida for 6+ months may not be subject to Florida use tax.

For further guidance, read the Department of Revenue’s TIP 25A01-01R.