If you live in New York and you’re buying a vehicle, you’re likely going to pay one of the highest sales tax rates in the country. With combined state and local taxes climbing as high as 8.875%, buyers in cities like Yonkers and counties like Erie are often shocked by how much they owe in taxes before even driving their new vehicle off the lot.
At Ride Legal, we specialize in helping people avoid these hefty state taxes through compliant, strategic vehicle registration—primarily using Montana LLCs. For car enthusiasts, RV owners, exotic car collectors, and anyone purchasing high-value vehicles, this often translates into thousands of dollars saved. This article will walk you through exactly how the sales tax works in New York, how much it could cost you, and how Ride Legal offers a legitimate, legal pathway to keep that money in your pocket.
Understanding New York’s Sales Tax Structure
New York State has a base sales tax rate of 4%, but the real burden comes from local add-ons. Each county—and in many cases, individual cities—tack on additional percentages. That’s why sales tax rates in New York vary from 7.0% to 8.875%, depending on where the purchase or registration takes place.
Let’s say you’re purchasing a $90,000 custom SUV in Erie County. The sales tax rate there is 8.75%, so you’re looking at a tax bill of $7,875 just to register your vehicle. And in Yonkers, where the rate is 8.875%, that same vehicle would cost $7,987.50 in tax alone. That’s money that doesn’t go toward performance, luxury features, or any added value—just state revenue.
Why Ride Legal Exists
Ride Legal helps customers across the U.S. avoid overpaying on sales tax legally and transparently. Through strategic Montana LLC formation, we enable clients to register their vehicles in a tax-free state while remaining compliant with federal and state laws. Montana is unique in that it charges zero sales tax, making it one of the most advantageous places in the country to title a vehicle.
Here’s how it works:
- You form a Montana LLC (we handle this for you)
- The vehicle is titled in the name of that LLC
- Ride Legal acts as your registered agent in Montana
- The vehicle is registered legally in Montana, eliminating state and local sales tax
For New York residents, this approach can result in thousands—or even tens of thousands—of dollars in savings, particularly for high-value vehicles.
Real-World Example: How Much Can You Save?
To illustrate just how significant the savings can be, here are side-by-side examples comparing what a $100,000 vehicle would cost in sales tax across different states:
| State | Combined Tax Rate | Sales Tax on $100k Vehicle | Tax with Ride Legal | You Save |
|---|---|---|---|---|
| New York (Yonkers) | 8.875% | $8,875 | $0 | $8,875 |
| California (Los Angeles) | 9.5% | $9,500 | $0 | $9,500 |
| Texas (Houston) | ~8.25% | $8,250 | $0 | $8,250 |
| Florida (Miami-Dade) | ~7% | $7,000 | $0 | $7,000 |
Whether you’re buying a classic car, luxury SUV, performance truck, or high-end RV, these tax savings are real and legally attainable with the right strategy.
What You Could Do With Those Savings
The savings from skipping sales tax aren’t just theoretical—they create real financial opportunity. Here are ten ways Ride Legal clients often reallocate their tax savings:
- Upgrade to a higher trim level or premium package
- Add performance enhancements like a turbo kit or tune
- Invest in aftermarket wheels, suspension, or brakes
- Apply a custom wrap, ceramic coating, or paint protection
- Cover your full first year of insurance
- Take a week-long vacation or road trip
- Purchase a utility trailer or matching tow setup
- Set aside funds for future maintenance or repairs
- Buy a second fun vehicle or track toy
- Use the savings toward debt, savings, or other financial goals
Many of our customers tell us that this flexibility is what makes Ride Legal’s service so valuable—it’s not just about saving money, it’s about getting more vehicle for your money.
Full List: New York State and Local Sales Tax Rates
New York’s local sales tax rates vary by county and city, and some include an additional Metropolitan Commuter Transportation District (MCTD) surcharge. You can find the current combined rates, locality reporting codes, and full details in the official NY State Publication 718, which is updated regularly by the Department of Taxation and Finance:
View Publication 718 – NYS Sales & Use Tax Rates by Jurisdiction
This document includes specific tax figures for every county, city (including New York City boroughs), and district—complete with reporting codes used for filing.
Why This Matters More Than Ever
As vehicle prices continue to rise—especially for EVs, custom trucks, RVs, and luxury cars—so does the potential for sales tax liability. For New York residents, it’s critical to understand how much you’re really paying and what options are legally available to you.
Ride Legal was built to help customers like you reduce costs while staying fully compliant with state and federal laws. We’ve helped thousands of people title and register vehicles through Montana, and we’re happy to walk you through what’s possible for your specific situation.
Ready to Stop Overpaying?
The tax savings from working with Ride Legal are just one benefit—but it’s a major one. We provide fast, compliant, and stress-free vehicle registration services that help you keep more of your money. Whether you’re buying now or planning your next big purchase, our team is here to help.
Get in touch with Ride Legal today to see how much you can save.
