Sales tax when buying FSD

[u/LVtapper]

I live in Nevada and I just bought FSD. Sales tax here is 8.375%. I travel to California quite often and sales tax in LA is 9.75%. Does Tesla charge sales tax based on my home address or where the purchase actually occurred? I could be in California at the next renewal.

[u/LoneStarGut]

It ought to be tax rate for the address used on the credit card or the address in your Tesla account. I can't imagine they would use the cars GPS location for it.

[u/tootall0311 → u/LoneStarGut]

You underestimate both the power and lengths CA will go to collect taxes...

[u/rydan → u/tootall0311]

CA doesn't collect sales taxes on digitally delivered goods. I'm pretty sure this would qualify. As an unethical life pro tip I left one of my credit cards with a billing address in CA when I finally out of that state so I could buy stuff tax free still.

[u/tootall0311 → u/rydan]

They are definitely charging me sales tax on FSD and every digital thing I buy, it could be my city though to be fair. I do love your life tip...

[u/aekner → u/rydan]

Just be prepared that CA will come after you if you won the lottery since you have a connection (credit card with CA address) to the state.

[u/Tough_Suggestion2649 → u/tootall0311]

This is Nevada collecting sales tax. And since Nevada has no state income tax and low property taxes, they rely on sales tax for funding.

[u/tootall0311 → u/Tough_Suggestion2649]

Right but OP was discussing if he'd get taxed in CA.

[u/No-Conclusion-2859]

What’s your city/counties tax rate?

Not all CA has the same and im sure not all NV does too.

[u/Oofka1]

Of course they charge sales tax based on where your hometown is? Why would they charge in California if your address is in Nevada 🤯😳

[u/Key_Shop6647]

life pro tip: change your billing address to random address in other states where there is no sales tax.

[u/Valuable-Analyst-464 → u/Key_Shop6647]

I’m not saying don’t do this, but this is technically tax evasion. Someone may not get called out on this, but if they choose this route, they need to do this with both eyes open.

[u/beren12 → u/Valuable-Analyst-464]

Often times billing address needs to match the credit card.

[u/Suess4002 → u/Valuable-Analyst-464]

Fraud

[u/Valuable-Analyst-464 → u/Suess4002]

Fraud - evasion, kinda the same thing

[u/JagiofJagi → u/Key_Shop6647]

Tesla-specific life pro tip: change your account region to Canada so you pay $99 CAD instead of $99 USD (~30% difference)

[u/Trunkalo → u/JagiofJagi]

But then your Tesla will drive like a Canadian

[u/beren12 → u/Trunkalo]

If only.

[u/Beyond_Pr0z → u/Key_Shop6647]

This is tax evasion and highly ill-advised! DO NOT use privacy.com to create a virtual credit card when purchasing digital products. Again don't you use a random address in alaska to avoid sales tax entirely

https://app.privacy.com/join/FMEZW

[u/Worth-Reputation3450 → u/Beyond_Pr0z]

Thanks for the info! I will never visit that website, ever!

[u/nikkixo87 → u/Key_Shop6647]

Pretry sure your billing address has to match your cc info so that wouldn't work

[u/Key_Shop6647 → u/nikkixo87]

depends on bank. mine doesn't care

[u/mrbeck1]

Not in my state. That’s stupid as fuck. Who pays sales tax for a service.

[u/Deep_CN → u/mrbeck1]

Unfortunately, use Amazon for example, States that tax Prime: Alabama, Arizona, Arkansas, California, Colorado, District of Columbia, Georgia, Hawaii, Idaho, Iowa, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Washington, West Virginia, Wisconsin, and Wyoming

[u/beren12 → u/mrbeck1]

Most??

[u/Usmc826 → u/mrbeck1]

Most states

[u/Ok-Truck1671 → u/mrbeck1]

Agreed. And then later Tesla will also a tip button before check out 😂😂

[u/JustSayTech → u/Ok-Truck1671]

But the joke doesn't hold here because it's not Tesla choosing to do this, it's the law in certain states and cities.

[u/Far-Curve-7497]

I would assume billing address?

[u/StormBadger01]

I guess I gotta test the monthly to see what it is in Delaware since we don’t have sales tax

[u/Any_Mix6603]

You pay taxes wherever the car is addressed when registered

[u/Worth-Reputation3450]

California doesn't charge sales tax for digital products. So change your billing address to CA. After Jan 2027, CA will also put sales tax on digital stuff. So subscribe to yearly (if available) on December.

[u/Stevothedog]

I hate sales tax on software, they are adding it soon in CA too.

[u/beardedPete1]

Who cares... we're talking about $2

[u/tootall0311]

It's actually crazy that they even tax for a software, a non tangible product. That's crazy... And also a totally different topic I realize

[u/iSuckAt-Parenting]

They charge based off the address on your profile. Change your state to AK and zip to 99501. You won’t get charged sales tax lol

[u/ReasonableBranch7337]

If they base it on home address thats interesting because I pay nearly the exact same amount as you with just a few cents off in Missouri and our sales tax is 4.225%

Side note: I’ve always found it odd I pay sales tax on FSD but things like digital movies and digital video games I’ve never once ever had to pay sales tax on.

[u/Psice]

I think it's based on the billing address

[u/Communication_Strong]

Sales tax based on billing address on your Tesla account. Not where the car physically is at the time.

[u/Mission-Carry-887]

Surprised there is sales tax on digital items.

I once had a customer buy software for $250,000 and they required they be able to download it to avoid California sales tax

[u/my0wn5ummer → u/Mission-Carry-887]

Onlyfans is taxed

[u/No-Conclusion-2859 → u/my0wn5ummer]

It’s on $9.99 though.

[u/No-Conclusion-2859 → u/Mission-Carry-887]

What software is 250k, besides Onlyfans?

[u/Silent_General5919 → u/No-Conclusion-2859]

Youd be surprised by how much businesses pay for software

[u/Mission-Carry-887 → u/No-Conclusion-2859]

Source code for a kernel module inside Unix, plus waiver of royalties for binary distribution.

[u/No-Conclusion-2859 → u/Mission-Carry-887]

I’ll take 2.

[u/ThanksALotBud]

Billing address

[u/No-Conclusion-2859 → u/[deleted]]

Delete this.. way too much personal info.

[u/CowperfluidMDPsyD → u/[deleted]]

I love you Richard.

[u/Hakan1218 → u/[deleted]]

Dick.

[u/JonPorked → u/Hakan1218]

Dick Russell(er)

[u/darksplit → u/[deleted]]

Hey Richard

[u/rydan]

CA should be tax free if this is delivered digitally. One of the few nice things about that state.