Whether taxed or not varies by state. In PA, the vehicle is taxed after the rebates and incentives are applied. So it makes a big difference when the retail PP is applied. If the dealer sends a check later, you end up paying tax on it at delivery. If taken off at the sale, the RPP is not taxed (based on the state you are in).My dealer also took it all off up front. They also considered the PO a rebate, I was taxed on that portion and it wasn’t considered a discount, Instead applied as credit toward the sales price.
Pennsylvania taxes vehicle purchases after rebates or incentives are applied to the price
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