California Auto Loan Calculator
Estimate your monthly car payment in California, including vehicle sales tax.
Vehicle sales tax in California
California charges an approximate vehicle sales tax rate of 7.25%. California is one of a smaller number of states that taxes the full vehicle price and does not reduce the taxable amount for a trade-in, so your sales tax is calculated on the price before any trade-in credit.
How is a car payment calculated?
Your monthly auto loan payment is based on the amount you finance (vehicle price minus down payment and trade-in value), the interest rate, and the loan term. Lenders use an amortization formula so that each fixed monthly payment covers a mix of interest and principal, with more going toward interest early in the loan. On top of the loan itself, California vehicle sales tax is typically collected up front at purchase or rolled into your financing.
The impact of your down payment and trade-in
Increasing your down payment or trade-in value reduces the amount you need to finance, which lowers both your monthly payment and total interest paid. Even a modest increase can meaningfully reduce your total cost over a 5 or 6 year loan.
See our national auto loan calculator to compare other states.