How to calculate a lemon law refund
- Start with the price. Use the price in your contract. States define it differently; Texas includes tax, title and license, while California uses the price paid or payable, including transportation and factory options.
- Find the miles your state counts. California, Georgia, New Jersey and Wisconsin count miles before the first repair visit for the defect. Florida counts all miles to the hearing. Texas adds miles after the first report at 50%. New York, Massachusetts and Washington count total miles, and New York ignores the first 12,000.
- Apply the formula. Multiply the price by those miles and divide by your state’s divisor.
- Add allowed charges. Taxes, fees, finance charges and incidental costs such as towing are added in some states and excluded in others.
- Split the payout. Any loan balance is paid to the lender first; you receive the rest.
Lemon law mileage deduction formulas by state
| State | Deduction formula |
|---|---|
| Alabama | full purchase price × miles traveled before the first report of the defect ÷ 100,000 |
| Alaska | Alaska caps the allowance for use at the vehicle’s straight-line depreciation over seven years for the time it was available to you, plus depreciation from neglect, abuse or body damage not caused by the defect (AS 45.45.360(9)). |
| Arizona | Arizona’s allowance for use covers use before your first written report and later periods when the vehicle was not out of service for repair. The statute sets no fixed formula (§ 44-1263(A)). |
| Arkansas | purchase price × mileage when first brought in for repair of the defect ÷ 120,000 |
| California | price × miles driven before the first repair visit for the defect ÷ 120,000 |
| Colorado | total contract price × (miles before the first repair presentation + miles driven later while not out of service for repair) ÷ 100,000 |
| Connecticut | total contract price × miles traveled before the manufacturer accepts the return ÷ 120,000 |
| Delaware | no more than the full purchase price × miles driven before you first reported the defect ÷ 100,000 |
| District of Columbia | The District caps the allowance for use at 10 cents a mile for miles beyond the first 12,000, plus damage not due to normal wear or the defect (D.C. Code § 50-502(b)). |
| Florida | price × all miles you drove up to the settlement or arbitration hearing ÷ 120,000 (60,000 for RVs) |
| Georgia | purchase price × miles before the first repair visit for the defect ÷ 120,000 (motor homes ÷ 90,000) |
| Hawaii | Hawaii deducts 1% of the purchase price for every 1,000 miles you drove up to the third repair attempt, the first repair of a safety defect, or the 30th business day out of service, whichever came first (HRS § 481I-2). |
| Idaho | no more than miles driven up to the arbitration hearing × purchase price ÷ 120,000 |
| Illinois | Illinois deducts a reasonable allowance for wear from use before your first report of the defect, and from later use when the vehicle was not out of service for repair. The Act does not set a fixed formula (815 ILCS 380/3(c)). |
| Indiana | Indiana’s Attorney General guide does not describe a deduction for use. Ask the manufacturer to show how it calculates any refund. |
| Iowa | Iowa deducts the miles you drove up to the third repair attempt for the defect, the first repair of a safety defect, or the 20th day out of service, whichever comes first, × the purchase price ÷ 120,000 (Iowa Code § 322G.2(18)). |
| Kansas | Kansas calculates the allowance for use from the most recent edition of the American Automobile Association’s “Your Driving Costs”, for miles driven before your first report and while the vehicle was not out of service (K.S.A. 50-645(c)). |
| Kentucky | Kentucky deducts the amount directly attributable to your use of the vehicle, other than periods when it was out of service for the defect. The statute gives no fixed formula (KRS 367.841(7)). |
| Louisiana | Louisiana deducts the use directly attributable to you before your first notice of the defect and during later periods when the car was not out of service for repair. The statute gives no fixed mileage formula. |
| Maine | Maine caps the allowance for use at the lesser of one-third of the IRS business mileage rate applied to the mileage on your arbitration application plus miles beyond 20,000, or 10% of the purchase price (10 M.R.S. § 1161(4)). |
| Maryland | Maryland deducts a reasonable allowance for use, capped at 15% of the purchase price, plus damage not due to normal wear. The statute sets no mileage formula. |
| Massachusetts | contract price × miles before the manufacturer accepts return ÷ 100,000 (motorcycles ÷ 25,000) |
| Michigan | price × (miles before the first report + all miles beyond 25,000) ÷ 100,000 |
| Minnesota | Minnesota caps the allowance for use at 10 cents a mile or 10% of the purchase price, whichever is less, counting use while the vehicle was not substantially impaired (subd. 3(a)). |
| Mississippi | miles driven by you × 20 cents a mile |
| Missouri | Missouri subtracts a reasonable allowance for use from a refund or a replacement, but the statute sets no formula (§ 407.567.1). |
| Montana | total contract price × miles traveled before the manufacturer accepts the return ÷ 100,000 |
| Nebraska | Nebraska deducts the use directly attributable to you and any previous owner before the first report and while the vehicle was not out of service. The statute sets no mileage formula (§ 60-2703). |
| Nevada | Nevada deducts the use directly attributable to you before your first report of the defect and while the vehicle was not out of service for repairs. The statute sets no mileage formula (NRS 597.630(1)(b)). |
| New Hampshire | full purchase price × miles before the first repair attempt ÷ 100,000 (motorcycles, snowmobiles and OHRVs: ÷ 20,000 up to 250 cc, ÷ 40,000 above) |
| New Jersey | total purchase price × mileage at the first repair attempt ÷ 100,000 |
| New Mexico | New Mexico deducts the use directly attributable to you before your first report of the defect and while the vehicle was not out of service, for a refund or a replacement. The Act sets no mileage formula (§ 57-16A-3(B)). |
| New York | (miles over 12,000) × purchase price ÷ 100,000 |
| North Carolina | North Carolina deducts miles used up to the third repair attempt for the defect, or the 20th business day out of service if earlier, × the purchase price ÷ 120,000 (G.S. 20-351.3(c)). |
| North Dakota | North Dakota caps the allowance for use at 10 cents a mile driven or 10% of the purchase price, whichever is less, counting use before your first report and while the vehicle was not in the shop (§ 51-07-18(1)). |
| Ohio | Ohio’s Lemon Law refunds the full purchase price plus incidental damages. The statute sets no deduction for the miles you drove (Ohio Rev. Code § 1345.72(B), § 1345.71(F)). |
| Oklahoma | purchase or lease price × miles driven beyond 15,000 ÷ 120,000 |
| Oregon | mileage when the manufacturer replaces or repurchases × (cash or lease price + collateral charges) ÷ 120,000 (motorcycles ÷ 25,000; motor homes ÷ 90,000) |
| Pennsylvania | Pennsylvania deducts a limited allowance for use from a refund. The official consumer guides do not publish a formula. |
| Rhode Island | total contract price × (miles before the first report + later miles while not out of service for repair) ÷ 100,000 |
| South Carolina | full purchase price × miles traveled before the first report of the defect ÷ 120,000 |
| South Dakota | full purchase price × miles traveled before the first report ÷ 100,000 |
| Texas | (price × miles before first report ÷ 120,000) + (50% × price × miles after first report ÷ 120,000) |
| Utah | Utah deducts the use directly attributable to you before your first report of the defect and while the vehicle was not out of service. The act sets no mileage formula (§ 13-20-4(2)). |
| Vermont | full purchase price × miles before the first repair attempt ÷ 100,000 |
| Virginia | Virginia’s allowance for use is capped at one-half of the IRS business mileage rate times the miles driven before the first notice of the defect, plus any damage beyond normal wear (§ 59.1-207.11). |
| Washington | your miles × purchase price ÷ 120,000 (motor homes ÷ 90,000; motorcycles ÷ 25,000) |
| West Virginia | West Virginia’s article does not set a deduction for use. In court, the consumer may recover the purchase price and damages listed in § 46A-6A-4(b). |
| Wisconsin | price × miles driven before you first reported the defect ÷ 100,000 (motorcycles ÷ 20,000), at most |
| Wyoming | Wyoming deducts the use directly attributable to you before your first report and while the vehicle was not out of service for repair. The statute sets no mileage formula (§ 40-17-101(a)(iii)). |
Worked example: the same car in every state
A $40,000.00 vehicle. The defect was first reported at 6,000 miles, and the buyback happens at 15,000 miles. Deductions only; allowed charges are added on top.
| State | Deduction | Price minus deduction |
|---|---|---|
| Oklahoma | $0.00 | $40,000.00 |
| New York | $1,200.00 | $38,800.00 |
| Arkansas | $2,000.00 | $38,000.00 |
| California | $2,000.00 | $38,000.00 |
| Georgia | $2,000.00 | $38,000.00 |
| South Carolina | $2,000.00 | $38,000.00 |
| Alabama | $2,400.00 | $37,600.00 |
| Delaware | $2,400.00 | $37,600.00 |
| Michigan | $2,400.00 | $37,600.00 |
| New Hampshire | $2,400.00 | $37,600.00 |
| New Jersey | $2,400.00 | $37,600.00 |
| South Dakota | $2,400.00 | $37,600.00 |
| Vermont | $2,400.00 | $37,600.00 |
| Wisconsin | $2,400.00 | $37,600.00 |
| Mississippi | $3,000.00 | $37,000.00 |
| Texas | $3,500.00 | $36,500.00 |
| Connecticut | $5,000.00 | $35,000.00 |
| Florida | $5,000.00 | $35,000.00 |
| Idaho | $5,000.00 | $35,000.00 |
| Oregon | $5,000.00 | $35,000.00 |
| Washington | $5,000.00 | $35,000.00 |
| Colorado | $6,000.00 | $34,000.00 |
| Massachusetts | $6,000.00 | $34,000.00 |
| Montana | $6,000.00 | $34,000.00 |
| Rhode Island | $6,000.00 | $34,000.00 |
Alaska, Arizona, District of Columbia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Minnesota, Missouri, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Pennsylvania, Utah, Virginia, West Virginia and Wyoming do not publish a fixed mileage formula, so they are left out of this comparison. Ohio’s statute refunds the full purchase price; the others are explained on each state’s page. To check your whole case in one report, including whether a test is met, use the checker.
What a buyback adds on top of the price
| State | What is added |
|---|---|
| Alabama | Collateral charges, finance charges after your first report, non-refundable service contracts and incidental damages such as alternative transportation are added. |
| Alaska | Reasonable shipping costs to the nearest authorized repair facility are reimbursed. |
| Arkansas | Sales tax, license and registration fees, finance charges, rental costs and manufacturer extended warranties are included. |
| California | Sales tax, license and registration fees, finance charges paid and incidental damages are added. Dealer add-ons from other suppliers are excluded. |
| Colorado | Sales tax, license and registration fees and similar government charges are included. |
| Connecticut | Collateral charges (sales tax, license and registration fees), finance charges after your first report and incidental damages are added. |
| Delaware | Sales taxes, registration fees and dealer preparation fees are added. |
| District of Columbia | Sales tax, license and registration fees and similar government charges are included. |
| Florida | Collateral charges (sales tax, title charges, earned finance charges, manufacturer-installed items) and incidental charges are added. |
| Georgia | Collateral charges (sales tax, dealer charges, dealer-installed items, extended warranty, interest paid) and incidental expenses are added. |
| Hawaii | Undercoating, dealer preparation, transportation, installed options and all collateral and incidental charges are included. |
| Idaho | Sales or excise tax, license and registration fees, and towing and rental costs are added. |
| Iowa | Collateral charges (installed items, earned finance charges, use taxes, title charges) and incidental charges such as towing and alternative transportation are added. |
| Kansas | All collateral charges are included. |
| Kentucky | Finance charges, sales tax, license and registration fees and collateral charges are included. |
| Louisiana | Amounts paid at the point of sale and collateral costs (sales tax, license and registration fees) are added. |
| Maine | Paid finance charges, collateral charges (sales tax, registration) and towing, storage and alternative transportation costs are added. |
| Maryland | License, registration and similar government fees are included. |
| Massachusetts | Sales tax, registration, finance charges, dealer-added options and towing or rental costs are added. |
| Michigan | Reasonable towing and rental costs are added if they were not provided free. |
| Minnesota | Sales or excise tax, license and registration fees, and towing and rental costs are added. |
| Mississippi | Reasonably incurred collateral charges (dealer preparation, undercoating, transportation, towing, rental and title charges) are added. |
| Missouri | Sales tax, license, registration and title fees and inspection charges are part of the refund. |
| Montana | Collateral charges (sales and property tax, license and registration fees) and incidental damages are added. |
| Nebraska | Sales taxes, license and registration fees and similar government charges are included. |
| Nevada | Sales taxes, license and registration fees and similar government charges are included. |
| New Hampshire | Trade-in credits, down payment, license, finance, credit and registration fees and incidental and consequential damages are included. |
| New Jersey | Finance charges, the $50 application fee, repair costs and reasonable rental costs are added. |
| New Mexico | Collateral charges (taxes, license, title and registration fees) are included. |
| New York | License, registration and similar fees are refunded; New York sales tax is refundable through the state. |
| North Carolina | Collateral charges (sales tax, license and registration fees), finance charges after your first report, non-refundable service contracts and incidental damages are added. |
| North Dakota | All collateral charges are included. |
| Ohio | Incidental damages such as towing, rental, meals and lodging are added. |
| Oklahoma | Taxes, license and registration fees and similar government fees are included; interest is not. |
| Oregon | Collateral charges (taxes, title and registration fees, finance charges, options and aftermarket items bought within 20 days) are included in the refund. |
| Rhode Island | Sales tax, registration fee, finance charges, dealer-added options, and towing and rental costs are added. |
| South Carolina | Finance charges, sales taxes, license and registration fees and similar government charges are included. |
| South Dakota | Collateral charges (excise tax, license and registration fees), finance charges after your first report, non-refundable service contracts and incidental damages are added. |
| Texas | Reasonable incidental costs and the $35 filing fee are added. Interest and finance charges are not refunded. |
| Utah | All collateral charges are included. |
| Vermont | Trade-in and down payment credits, finance, credit and registration charges and incidental and consequential damages are included; Vermont purchase and use tax is refunded by the state. |
| Virginia | Collateral charges (sales tax, registration and title fees, finance charges, installed options) and incidental damages are added. |
| Washington | Collateral charges (sales tax, registration and title fees, finance charges, dealer-installed options) and incidental costs are added. |
| West Virginia | Sales tax, license and registration fees, other reasonable purchase expenses and damages may be awarded in court. |
| Wisconsin | Sales tax, finance charges, amounts paid at the point of sale and collateral costs are added. |
| Wyoming | All collateral charges are included. |
Frequently asked questions
How is a lemon law buyback calculated?
The manufacturer refunds what you paid, adds the charges your state allows, then subtracts a deduction for use. The deduction is usually the price multiplied by a share of your miles, divided by 100,000 or 120,000.
How much money do you get from a lemon law buyback?
Usually most of what you paid. On a $40,000 car first repaired at 6,000 miles and bought back at 15,000 miles, the deduction in the verified states ranges from $0.00 to $6,000.00, before taxes and other charges are added.
Do I get my down payment back in a lemon law buyback?
Yes. The refund covers what you paid toward the vehicle, including the down payment, minus the deduction for use. If a loan is outstanding, the lender is paid first and you receive the rest.
Are taxes refunded in a lemon law buyback?
In most verified states, yes: sales tax is part of the refund in Texas, California, Florida and Ohio, among others. Illinois is an exception; the manufacturer does not refund the tax, but the selling dealer may claim a tax credit.
Sources
Checked on October 13, 2026. Read how we verify every rule in our editorial policy.
- 43 Tex. Admin. Code § 224.260 (usage deduction)
- Judicial Council of California, CACI No. 3241
- Alabama: Ala. Code §§ 8-20A-1 to 8-20A-6
- Arkansas: Act 297 of 1993
- Colorado: C.R.S. §§ 42-10-101 to 42-10-110 (as amended by SB 24-192)
- Connecticut: Conn. Gen. Stat. §§ 42-179 to 42-190
- Delaware: 6 Del. C. §§ 5001–5009
- Florida: Fla. Stat. ch. 681
- Georgia: O.C.G.A. § 10-1-780 et seq.
- Idaho: Idaho Code §§ 48-901 to 48-913
- Massachusetts: Mass. Gen. Laws ch. 90, § 7N½
- Michigan: Mich. Comp. Laws §§ 257.1401–257.1410
- Mississippi: Miss. Code §§ 63-17-151 to 63-17-165
- Montana: Mont. Code Ann. §§ 61-4-501 to 61-4-533
- New Hampshire: N.H. RSA 357-D:1 to 357-D:12
- New Jersey: N.J.S.A. 56:12-29 et seq.
- New York: N.Y. Gen. Bus. Law § 198-a
- Oklahoma: 15 Okla. Stat. §§ 901, 901.1
- Oregon: ORS 646A.400 to 646A.418
- Rhode Island: R.I. Gen. Laws §§ 31-5.2-1 to 31-5.2-14
- South Carolina: S.C. Code §§ 56-28-10 to 56-28-110
- South Dakota: S.D. Codified Laws §§ 32-6D-1 to 32-6D-11
- Vermont: 9 V.S.A. §§ 4170–4181
- Washington: Rev. Code Wash. ch. 19.118
- Wisconsin: Wis. Stat. § 218.0171