FSD Upgrade Tax Free? - Check your Accounts to make sure you have FSD

FSD Upgrade Tax Free? - Check your Accounts to make sure you have FSD


When my Dad bought his car last year, he wanted it with FSD for $8,000, which is what it was at the time. $5,000 for EAP and $3,000 more for FSD. That's what was agreed upon when the order for an inventory car was placed. The inventory car didn't have it, so it had to be added, which Tesla sent us an invoice that reflected the $3,000 price change as the inventory car originally only had EAP. Somehow, when he actually went and took delivery of the car, they didn't include it. After digging through old paperwork, he did pay $3,000 less than what the invoice price was. With Tesla, everything is done so quickly with most of it online, so my dad didn't catch it when he went in and signed the final paperwork to take delivery.


Discovered that he didn't have FSD doing a random check of his account. So, the above is for those that think they may have gotten it, to double check your account and make sure you actually do have it. Tesla is well known for somehow missing these things if you're adding any features to an existing inventory car. (Ludicrous mode was an issue on another car Inventory car we purchased).

Anyway, unfortunately we didn't catch it when the price was $2,000, but with the recent price reduction, he lucked out and we were able to pay the same $3,000 that he was originally supposed to be charged for it. There had been some arguments on the forums about whether Tesla would charge sales tax on a software update. If you purchased it with the car, it's part of the sale price and you are taxed on it. We purchased online from California and there was no sales tax added. Confirmed that the car now has it and the credit card was charged $3,000 even. So, he ended up saving about $270 on sales tax thanks to the mistake. Had we caught it a few months ago, he could have saved over $1,000 by getting it when it was $2,000, but that's life.

jvcesare | 19. August 2019

You probably saved more than that because your registration fee was based on the price of the car.

jvcesare | 19. August 2019

*assuming you are in CA

Effopec | 19. August 2019

I ordered last week and was charged $247.50 sales tax in Texas.

MichaelB00012 | 19. August 2019

IL charged tax as well.

casun | 19. August 2019

i’m in california and i was charged sales tax.

CharleyBC | 19. August 2019

We paid CA sales tax on our $2K FSD purchase in March.

roger.klurfeld | 19. August 2019

I'm in Virginia and I paid sales tax on an after delivery purchase of FSD.

CST | 19. August 2019

In CA.. Was charged tax. | 19. August 2019

I was taxed as well, (CO) but it was not much. I almost added it to my car when I purchased it, but I did not want to raise my registration and insurance costs, in CO the registration is based on the sales price of the car and it goes down slightly each year after. I also did not want to finance it over the life of the loan, and most importantly while I wanted it, I was buying my car sight unseen .. I had never even saw one, and was not sure if I would like it or not, I knew I liked the S and at the time preferred the S, but did not want to pay too much, so I just got EAP, and decided I would do the FSD later if it came out at all. Luckily now I was able to get it for the same price I almost paid at time of purchase, and I love my 3 even more than the Model S

EVRider | 19. August 2019

I responded in the Model S forum, but I paid sales tax in Florida.

2015P90DI | 19. August 2019

Sounds like my dad just got lucky then that they didn't charge him sales tax. I thought that was the conclusion of the prior posts on the subject, that they were charging sales tax. So was surprised to see that his invoice didn't include tax and his credit card statement showed just $3,000 even being charged.

2015P90DI | 19. August 2019

Either that, or Tesla just realized or confirmed that software updates aren't supposed to be taxed? | 19. August 2019

I checked my invoice and there is no tax listed there, but I was charged at check out, and I checked my credit card statement and was actually charged the tax ($3,054.38)

bcmusik | 19. August 2019

Paid my heavy tax in Ca.

GODOFTHUNDER | 19. August 2019

I purchased from Oregon, no sales tax.

jokerandthief | 19. August 2019

Yes tax in NY.

mrburke | 19. August 2019

It is my understanding that software downloads in California are NOT taxable. Tesla did charge me sales tax with I purchased EAP+FSD in March, but I may contact them and see if I am entitled to a refund or not.

Even if I don't get the sales tax back, I still think I got great value.

3500HDP3D | 20. August 2019

Tax free transaction in CA on 08-09-19 for FSD.

rhfreed | 20. August 2019

When does the download happen after you pay for fsd?

mrburke | 20. August 2019

It is less of a download and more of "turning it on". I my case if just happened, and the car wouldn't not start for about 2 minutes while a message was displayed to the effect of "Software update in progress"

mrburke | 20. August 2019

Oh- And it took a couple of days after I payed for it, for that to happen.

kun.chen | 08. Dezember 2019

is it physical location or just billing location ..,.

Tesla2018 | 08. Dezember 2019

is it physical location or just billing location

Good question. It might be based on what state the car is registered in. My cellphone is taxed based on the billing address of the charge card address that is linked to it.