Sales Tax, Registration, and Fees in a Total-Loss Settlement
Many states require insurers to reimburse sales tax, registration, and title fees on total-loss settlements. Know your state's rules.
Published April 28, 2026 · Updated May 2, 2026
Bottom line
Most states require insurers to include sales tax (or sales-tax credit), registration, and title fees in your total-loss settlement. Some require it only on first-party claims; some on both. Always ask — these add up to several hundred dollars on most vehicles. You can specifically request a total loss settlement breakdown from your insurance carrier that will include the actual cash value, the sales tax, fees, and any applicable deductible.
What's typically reimbursable
Sales tax on the replacement vehicle. Registration fees. Title fees. Sometimes documentation fees.
First-party vs. third-party
First-party policies typically cover these. Third-party rules vary by state — and at-fault carriers often try to skip the reimbursement.
Frequently asked questions
What if the insurer says they don't pay sales tax?▼
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