Do You Pay Tax On Shipping Cars?

Last updated Jun, 29 2026

One of the most frequent questions we get from our customers is if they have to pay taxes when they ship. For most people, and in most cases, the answer will be “no” since hauling is generally a tax-exempt service, at least if you’re moving to and from the United States. Sometimes, you may even be able to deduct the cost if you’re relocating for work or business. There generally are tax considerations when moving internationally, which depend on the country you’re delivering to and their specific taxes on imports there.

When You Do Have To Pay Taxes

If you’re moving that you already own (within the United States), then you do not have to pay taxes on the fees. However, if you buy a car and the price is included as part of the purchase price, the expense and the auto are taxable. The reasoning behind this is that the total expenditure of the auto is taxable, and if hauling is included in that, then it is considered part of the “sale price.” This applies to both new and used vehicles, so it’s essential to remember if you’re buying from out of state and have it hauled to you as part of the total price.

Since costs are not taxable, only those bundled with an auto sale are taxable. For example, if you purchase a car out of state and make arrangements to have it shipped alone, it is not taxable. However, if the seller arranges for delivery, it is considered part of the purchase price and is taxable, along with itself.

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When You Can Deduct Costs

There is one circumstance in which you can deduct the fee from your taxes, which is tied to moving for work. If you are relocating for a job, your expenses are considered tax deductible, which includes expenses. However, you need to meet a few criteria to file for this particular deduction. First, your new job must be at least 50 miles further away than it was at your previous residence, which is a relatively easy standard to meet for most people who are moving. Second, you must work full-time for 39 weeks of your first year in your new position. The full-time work requirement extends to two years if you are an independent contractor.

International Hauling & Taxes

What we’ve covered above only applies to moving within the United States, which differs from international or overseas taxes. The tax burden you’ll face with international hauling mainly concerns the two countries involved, though almost all of them will assess some form of tax on all imports. In some cases, this tax can be very high, so it’s essential to check the import/export laws of the countries in question to fully understand the expenditure and taxes involved with international delivery.

Frequently Asked Questions

Do you pay tax on shipping cars within the United States?

Usually, no. If you're shipping a vehicle you already own within the U.S., the auto transport service itself typically is not subject to a separate federal tax charged to consumers. However, state tax rules can differ for transportation services or related transactions, so always review local regulations if your shipment involves a vehicle purchase or commercial transaction. Learn more about car transportation services.

Do you pay tax on shipping cars you buy from another state?

Yes, in many cases you may owe sales or use tax on the vehicle purchase, but that tax applies to the vehicle itself, not necessarily the shipping service. Whether you owe tax depends on your state's registration laws, where the vehicle was purchased, and applicable exemptions. This distinction is one of the most common sources of confusion for buyers researching "do you pay tax on shipping cars."

Is international car shipping subject to import taxes or customs duties?

Yes. International vehicle shipments may require customs duties, import taxes, VAT, GST, or other government fees based on the destination country's regulations. These charges are separate from your shipping quote and vary by the vehicle's value, age, origin, and local import laws. If you're planning an overseas shipment, review our international car shipping guide before scheduling transport.

Are car shipping charges tax deductible?

Sometimes. Personal vehicle shipping expenses are generally not tax deductible for most individuals under current U.S. federal tax rules. However, businesses transporting company vehicles or qualifying commercial assets may be able to deduct transportation expenses if they meet IRS requirements. Because tax situations vary, consult a qualified tax professional before claiming any deduction.

Does the state where my car is delivered affect whether I pay tax on shipping charges?

It can. Some states treat shipping and delivery charges differently depending on whether they are part of a taxable sale, separately itemized, or tied to taxable goods. If you're shipping a recently purchased vehicle, the destination state's tax laws may influence the overall transaction, even if the transport service itself is billed separately. Reviewing your auto transport rules and regulations can help you understand these differences.

What taxes should I expect when importing a car from another country?

Imported vehicles may be subject to customs duties, federal processing fees, state registration taxes, and, in some countries, VAT or similar import taxes. The total cost depends on the vehicle's declared value, country of origin, emissions compliance, and destination requirements. Before importing a vehicle, request a detailed estimate so you understand both shipping costs and government-imposed fees.