Question: are car rebates taxable in california?
Answer: Do You Have to Pay Taxes on Cash Back Rebates? ... So what this means is if you purchase a car for $25,000 and there is a $3,000 cash-back rebate, you will be taxed on the full $25,000 before the rebate is subtracted. In a state like California which has 10% sales tax, that's an additional $300!