How Do I Get a Tax Refund on a New Car Purchase?
You can get a tax refund on a new car purchase if the vehicle purchased falls under certain criteria. This is not an actual refund, but a credit on your federal taxes. According to the Internal Revenue Service (IRS), a new car, motorcycle, or light truck can qualify for a deduction for the state and local sales tax you paid. This deduction on the amount of tax, and fees paid is limited to $49,500 for a single person. This amount is reduced for couples and is income sensitive. Here is a calculator to help you at IRS.gov.