Trying to understand the laws behind taxes on rebates in various locations. In the highlighted section below, taken from the California Gov website here, it seems that rebates should not be taxed. All the deals I’ve seen on this forum show rebates as taxed in California. Can someone please explain to me how I’m misreading this?
That appears to be referencing direct to dealer incentives, which arent taxed in CA (and are rolled into the dealer selling price rather than itemized as an incentive on your contract).
Thanks for explaining that. Do you happen to know a comprehensive list of states that do not tax consumer rebates?
There is no all encompassing master list, it’s all depending on how the rebate is structured.
All that matters is what is your state, and what car are you buying.
Example : I paid tax on my Hyundai rebates, but not on my Volvo rebates…and I’m in CA