If you bought a vehicle from a car dealer or private seller out of state and want to register and title the vehicle in Wisconsin, you must pay the 5% Wisconsin sales or use tax unless an exemption applies.

Buying a car can get complicated fast—and doing so from a state other than your home state can get complicated even faster. You’ll need to make sure you have the proper paperwork filled out and pay the applicable fees paid in order to get your car registered in your home state.

The

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and super app for drivers

Jerry

has created a road map to help you with the process. Whether you are buying a car in Wisconsin from out of state or buying a car out of state to title and register in Wisconsin, Jerry can show you the way—and how to find a more affordable

Wisconsin car insurance cost

while you’re at it!

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* checking your rate won’t affect your credit score

Check your rate

* checking your rate won’t affect your credit score

How to buy a car out of state as a resident of Wisconsin

Purchasing a car in a state other than the one you call home isn’t uncommon for Wisconsin residents, as the state shares a border with four other states. But if you do purchase your car out of state, how do you make sure the vehicle is registered and the title has been transferred to Wisconsin?

Pay the 5% Wisconsin sales or use tax on the car

The first thing to know is that a vehicle purchased outside of Wisconsin to be titled and registered in Wisconsin is still subject to the 5% sales tax law as if the car was purchased in the state of Wisconsin.

However, in accordance with sec. 77.53(16) of the Wisconsin legal code, if a vehicle is purchased in another state, the District of Columbia, or the Commonwealth of Puerto Rico and a sales tax from that jurisdiction is applied to the purchase, a credit against Wisconsin sales or use tax will be applied for the sales tax paid to that jurisdiction, up to the amount of the applicable Wisconsin tax.

What that also means is that if the tax paid on the vehicle is less than the Wisconsin sales tax, the difference must be paid for your new vehicle to be registered in Wisconsin. Also, there is no tax refund if the tax paid out of state is higher than what the Wisconsin sales tax would have been.

If you are due a refund due to Wisconsin sales or use tax being paid in error, you can file a refund claim with Wisconsin’s Department of Revenue. The claim must be submitted in writing with the following:

Description of the transaction and the reason for the refund.

Legible copy of

Form MV-1

Proof of remittance of the tax.

Claims should be sent to:

MS 5-144

Wisconsin Department of Revenue

PO Box 8906

Madison, WI 53708-8906

Registration and Titling Fees

If you owe any taxes to Wisconsin on your vehicle purchased out of state, you’ll have to pay when you visit the DMV to register and title your new vehicle.

When you do that, be sure to also bring with you:

The current out-of-state registration documents for your car

The physical copy of the car’s title

Proof of identity

The completed and paid application for title/license plate (

Form MV-1

Proof of remittance of the sales tax paid to the state of purchase

$5 convenience fee if registered at a DMV Convenience Center

Registration fees

The standard vehicle and registration fees for Wisconsin vary depending on the type of vehicle you are registering.

Passenger vehicle: $85

Electric vehicle: $100

Motorcycle/moped: $23 (every other year)

Duplicate of registration (if needed): $2

Title Fee: $164.50

Also keep in mind that certain counties and municipalities in Wisconsin charge a wheel tax for title and registration. The

wheel tax

varies from $10 to $40 depending on the county or municipality where the vehicle will be registered.

Once your paperwork has been completed and the proper fees have been paid, your title and new Wisconsin plates will be issued.

How to buy a car in Wisconsin if you live out of state

What if you want to buy a car in Wisconsin but live in another state? For that, you will need to find out what is needed to register your car in your home state, but the process usually doesn’t vary much between states. You’ll need to:

Get a valid bill of sale for the vehicle purchase (make sure to find out if the state you are registering the car in needs the bill of sale to be notarized).

Visit your local DMV with the bill of sale, proof of ID, proof of residency, and any other documentation needed to complete registration.

Pay the necessary fees to complete your vehicle’s registration in your home state.

You’ll most likely have to pay the local sales tax in the state where you are registering the vehicle, too.

Pointers for purchasing a vehicle out of state

If done correctly, buying your vehicle from a seller outside your home state can be a smart move. You might be able to find a vehicle you’re looking for that isn’t available where you live or possibly capitalize on lower sales prices that an out-of-state seller may be offering.

Either way, remember these pointers when making that purchase:

Get the vehicle’s history report. Knowing of any accidents or issues with your vehicle is a must. Use

CARFAX

to access the report. Also be sure to verify the VIN, especially if you are buying from a private owner.

Schedule your vehicle’s inspection in your home state. The car you buy needs to pass inspection requirements in the state you call home. Read about Wisconsin’s car inspection requirements here.

Schedule your emissions test. Kenosha, Milwaukee, Ozaukee, Racine, Sheboygan, Washington, and Waukesha counties require an emissions test for your vehicle.

Know the sales tax laws of your home state. When purchasing a car out of state, you’ll most likely have to pay sales tax for your home state—not the state in which you purchased your vehicle.

Don’t leave the dealership or seller without buying insurance! Even without the paperwork settled, if you want to drive your new vehicle back to your home state, you will need car insurance that meets

Wisconsin state minimum requirements.

MORE: Driving to Wisconsin: tips, tricks, and laws

How to save on car insurance in Wisconsin

Whether you buy your car across the street or in the next state over, you will need to buy car insurance—but you don’t want to be one of the approximately 60% of Americans who overpay for their coverage. That’s where

Jerry

can help you make sure you’re getting the best bang for your buck.

Jerry is a licensed

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broker app that finds you real-time quotes (not ads!) from dozens of the nation’s top name-brand insurance providers. When you find a policy you like, just select to switch, and the Jerry team will take care of all the paperwork needed to get you registered.

Have an existing policy? No worries—Jerry will even help cancel your old policy on your behalf.

“
Jerry
was fast and easy to use. Their customer service was so helpful in helping me navigate the situation my state is dealing with. Now I’m saving an extra $100 every 6 months!” —Tony C.

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