Do I pay sales tax in the state where I buy the car or where I live?

Generally, you pay sales or use tax based on where you will register the vehicle, which is usually where you live. If you pay tax to the selling state, some states give credit for it, but rules vary widely. Ask the dealer whether they will collect your home state's tax, and check your state DMV or revenue department's website. On OffLot, the out-the-door estimate uses an illustrative 6.25% tax rate, so confirm your actual rate with your state.