Do you pay sales tax on a car?

In most states, yes. Sales tax (sometimes called a motor vehicle excise or use tax) is usually charged on the vehicle's taxable price and collected either by the dealer at signing or by the state when you register the car. A handful of states have no general sales tax, but they may still charge other titling taxes or fees. Rates, what counts as taxable, and whether local taxes apply all vary, so check your state's DMV or revenue department website for the current rules.