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Old 05-09-2013, 08:06 PM   #3
Hitman84
 
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Drives: 2013 IOM 2LT
Join Date: Sep 2012
Location: Rhode Island
Posts: 535
it's state dependant.
in RI, much like California, you pay taxes on the full retail cost of a cell phone as well.
But from my research, with cars taxes are applied to the final price you're paying after incentives, rebates and trade in.
Again it varies state to state.

Here's the table from edmunds that explains if you pay taxes before or after both trade and incentives/rebates.

http://www.edmunds.com/car-buying/wh...d-you-pay.html
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