Trade-in or sell for cash? Florida sales tax changes the math

In Florida, trading in your car lowers the sales tax on the car you buy: a registered dealer deducts the trade-in allowance from the taxable price, so the 6% state tax applies only to the difference. A cash offer for your car does not carry that saving by itself. Here is the rule, the Florida Department of Revenue's own example, what Miami-Dade adds on top, and how to compare a cash offer with a trade-in allowance.

The rule: the trade-in comes off the taxable price

The Florida Department of Revenue states it plainly in GT-800030: a registered motor vehicle dealer may deduct a trade-in allowance from the taxable sales price of a motor vehicle. The condition is that the trade-in and the purchase are one transaction (Fla. Admin. Code R. 12A-1.007). The same deduction applies in a private sale when, in a single transaction, the buyer trades in a motor vehicle, boat, aircraft or mobile home for the vehicle being bought.

DOR's worked example

The example in DOR's TIP 26A01-01, published Feb 11 2026: a $50,000 vehicle with a $17,000 trade-in. The taxable price is $33,000, and 6% of that is $1,980 in state tax. Without the trade-in, 6% of $50,000 is $3,000, so in that example the trade-in saves $1,020 of state tax (our arithmetic from DOR's figures).

Miami-Dade's surtax: 1%, on the first $5,000 only

Counties add a discretionary sales surtax on top of the 6%. In Miami-Dade it is 1% in total, two 0.5% surtaxes with no expiration date, unchanged for 2026 (DOR form DR-15DSS). For a motor vehicle the surtax applies to the first $5,000 of the price only; the amount above $5,000 is not subject to it (GT-800030; Fla. Stat. 212.054). So for a Miami-Dade resident the surtax on a car is at most 1% of $5,000, which is $50, whatever the car costs. That $50 is our arithmetic from the rules, not a DOR quote.

The surtax follows your home county, not the dealer's

For a motor vehicle the surtax rate is set by the purchaser's residence address on the registration or title, not by the county where the dealer is. If you live in another Florida county and buy in Miami, you pay your own county's rate; DR-15DSS lists every county.

What is taxed and what is not

• Taxable: dealer preparation, settlement or closing fees are part of the price the tax is charged on.
• Not taxable: state-mandated title, licensing and registration fees, when they are itemized separately.

How to compare a cash offer with a trade-in allowance

A cash offer and a trade-in allowance are two different numbers for the same car. The trade-in is worth more than its face value, because of the tax it removes from the car you buy. To compare:

1. Get a cash offer for your car.
2. Get a trade-in allowance against the specific car you want.
3. Add 6% of the trade-in allowance to it. That is the state tax you no longer pay on the car you buy.
4. Compare that total with the cash offer.

With DOR's figures: a $17,000 trade-in plus the $1,020 of tax it saves is worth $18,020 to you, so a cash offer would have to be above $18,020 before cash comes out ahead on tax alone (our arithmetic). Rules change; check the official source or ask a tax adviser before you rely on these numbers.

Get both numbers from Xuma

Xuma Auto buys cars in Miami and makes an offer the same day. Send the VIN, the condition and photos on the sell or trade page and tell us whether you want cash, a trade toward one of the cars for sale, or both figures so you can run the comparison above.