When tax is paid on car sales

By law, during the sale of the car, the owner is the recipient of a certain amount of income. This means that the citizen is obliged to pay tax on the sale of the car.

The amount of payment depends on several obvious factors. They must be considered immediately before the transaction, so as not to violate the law. There are also situations in which there is no need to pay any amount to the budget.


  • 1 When you do not have to pay tax
  • 2 Subtleties of filing a declaration
  • 3 Getting tax deductions
  • 4 Conclusion

When you do not have to pay tax

To save his money and not to make unnecessary payments, every car owner must know the situations in which he will remain honest before the law, and in good faith conduct a car sale transaction. The current rate is 13% of the income received. Given the cost of the vehicle, you have to give a lot.

In a more comfortable situation are car owners who purchased a car over 36 months ago. Such owners, after having operated the vehicle for three years, are exempt from tax according to article 216 of the Tax Code. Owners of real estate who have owned it for more than three years can apply for the same rights.

where to pay car tax

Reselling the car every three years, it is completely legal to not pay tax. This form of sale is more profitable than re-issuing under a general power of attorney, since there is no need for permanent re-registration of papers and other related difficulties.

You need to know that an additional positive factor in the sale of cars after owning them for more than three years, is the lack of need to file a tax return.

Therefore, for those who doubt whether it is necessary to pay tax when selling a car, it is worth waiting for three years after its acquisition, after this period nothing is paid.

The second situation, in which the car owner does not have to pay tax after the sale of the car, is lack of additional income. This means when the vehicle is sold for an amount less than previously purchased. In fact, the owner of the alienated property does not receive any profit in this case, so there is no need to pay any taxes.

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when car tax is paid

You need to know that when selling a car at a reduced cost, the tax is not paid, but a confirming declaration must be submitted to the tax authorities that the car was bought was more expensive than sold.

Subtleties of filing a declaration

Each taxpayer is obliged to fill in the 3-NDFL declaration, as well as transfer it to the tax authorities, notifying the state of their income. The completed document is transmitted to the nearest organization located at the place of registration of the applicant. The transfer occurs after the tax on the sale of the car is paid. This is done in several ways:

  • personally citizen;
  • through the post office;
  • using the internet.

how to pay car tax

The provision of information occurs in the next calendar year, after the sale of the car. The deadline is April 30, so the car owner, even if he made a deal in December, has four full months to submit information to the state.

You need to know that failure to file a tax return entails administrative liability in the form of a fine.

Today the amount of punishment is 5% of the cost of the sold car. Such a substantial fine will necessarily be collected from the offender for income incurred in the previous year. There is a minimum threshold that cannot be lower than 100 rubles. If the citizen ignores this punishment, then after 180 days waiting for a more substantial 30% penalty from the amount of the transaction.

This means that those who are looking for how not to pay tax on the sale of a car should think about the consequences. In addition to paying the mandatory payment, you also need to take care of the filing of the declaration.

Tax deduction

Selling your car is more expensive than it was bought, the car trader will not be able to spend extra money on taxation. This operation will help tax deductions that are spelled out in the Tax Code. Indeed, not only during real estate transactions you can receive this bonus, but also from the sale of movable property.

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how not to pay car tax

You need to know that selling a car that the owner owned for less than three years, but according to the law it is considered that the owner received income, then you can rely on legal tax deductions.

You need to know that the maximum tax deductions amount to 250,000 rubles.

This rule allows for cheap cars to save a significant percentage during the sale procedure. There are some subtleties in the registration of this operation, for example, an employee of the inspectorate is not obliged to notify about the presence of tax deductions. The taxpayer should independently collect the package of all documents for which the benefit will be given. It takes into account all cars sold for a controlled period, that is, a calendar year.

It is important to keep all payment documents (checks, cavitation, etc.) on the alterations of the car, which will allow later to issue a tax deduction. Only by submitting them can you hope for a tax reduction.

Do I need to pay tax when selling a car?

In some cases the parties to the transaction independently agree on the amount, which will be specified in the documents and funds transferred by the buyer to the seller. However, in this situation there is a certain risk for the seller to receive less money if the buyer turns out to be an unscrupulous participant in the transaction. Therefore, it is desirable to conduct the most honest operations.


Even respectable citizens can not pay tax on the sale of cars for legal reasons. Just use the machine for more than 3 years or sell it for less than it was bought. It is only necessary to fill in on time the form 3-NDFL until April 30 of the following year after the transaction.