Cheapest States for Vehicle Registration
Vehicle registration costs vary dramatically by state — from under $30 to several hundred dollars per year. Some states charge flat fees, while others base costs on vehicle value, weight, or age. Sales tax on vehicle purchases adds another major cost that differs by state. This guide ranks all 50 states by total vehicle ownership costs.
- Alaska ranks #1 with the lowest sales tax at 0.00%.
- California ranks last at 7.25% — the highest among all states.
- The top 5 states are Alaska, Delaware, Montana, New Hampshire, Oregon.
- The ranking basis, source limitations, and calculation method are documented in the Methodology section below.
Top 3 States
All 50 States Ranked
Lowest to highest by sales tax
| # | State | Sales Tax | Avg Car Insurance | Cost of Living | Calculator |
|---|---|---|---|---|---|
| 1 | Alaska | 0.00% | $1,113 | 129 | Registration Calculator |
| 2 | Delaware | 0.00% | $1,462 | 101.7 | Registration Calculator |
| 3 | Montana | 0.00% | $975 | 105.9 | Registration Calculator |
| 4 | New Hampshire | 0.00% | $987 | 110.1 | Registration Calculator |
| 5 | Oregon | 0.00% | $1,170 | 109.6 | Registration Calculator |
| 6 | Colorado | 2.90% | $1,453 | 101.8 | Registration Calculator |
| 7 | Alabama | 4.00% | $1,081 | 85 | Registration Calculator |
| 8 | Georgia | 4.00% | $1,555 | 90.6 | Registration Calculator |
| 9 | Hawaii | 4.00% | $888 | 184.8 | Registration Calculator |
| 10 | New York | 4.00% | $1,753 | 124.7 | Registration Calculator |
| 11 | Wyoming | 4.00% | $948 | 93.7 | Registration Calculator |
| 12 | South Dakota | 4.20% | $937 | 94.1 | Registration Calculator |
| 13 | Missouri | 4.22% | $1,155 | 88.6 | Registration Calculator |
| 14 | Louisiana | 4.45% | $1,754 | 91.1 | Registration Calculator |
| 15 | Oklahoma | 4.50% | $1,084 | 83.5 | Registration Calculator |
| 16 | North Carolina | 4.75% | $925 | 96.6 | Registration Calculator |
| 17 | New Mexico | 4.88% | $1,082 | 89.9 | Registration Calculator |
| 18 | North Dakota | 5.00% | $808 | 90.7 | Registration Calculator |
| 19 | Wisconsin | 5.00% | $922 | 97.4 | Registration Calculator |
| 20 | Virginia | 5.30% | $1,114 | 99.1 | Registration Calculator |
| 21 | Maine | 5.50% | $856 | 114.6 | Registration Calculator |
| 22 | Nebraska | 5.50% | $981 | 91.3 | Registration Calculator |
| 23 | Arizona | 5.60% | $1,344 | 107.6 | Registration Calculator |
| 24 | Ohio | 5.75% | $947 | 93.7 | Registration Calculator |
| 25 | Florida | 6.00% | $1,865 | 100.7 | Registration Calculator |
| 26 | Idaho | 6.00% | $864 | 101.7 | Registration Calculator |
| 27 | Iowa | 6.00% | $873 | 88.6 | Registration Calculator |
| 28 | Kentucky | 6.00% | $1,046 | 92.5 | Registration Calculator |
| 29 | Maryland | 6.00% | $1,477 | 121.1 | Registration Calculator |
| 30 | Michigan | 6.00% | $1,444 | 93.9 | Registration Calculator |
| 31 | Pennsylvania | 6.00% | $1,155 | 96.2 | Registration Calculator |
| 32 | South Carolina | 6.00% | $1,367 | 91.9 | Registration Calculator |
| 33 | Vermont | 6.00% | $893 | 113 | Registration Calculator |
| 34 | West Virginia | 6.00% | $1,063 | 87.9 | Registration Calculator |
| 35 | Utah | 6.10% | $1,169 | 100.6 | Registration Calculator |
| 36 | Illinois | 6.25% | $1,153 | 95.1 | Registration Calculator |
| 37 | Massachusetts | 6.25% | $1,326 | 147.8 | Registration Calculator |
| 38 | Texas | 6.25% | $1,429 | 90.7 | Registration Calculator |
| 39 | Connecticut | 6.35% | $1,394 | 114.2 | Registration Calculator |
| 40 | Arkansas | 6.50% | $1,051 | 89.1 | Registration Calculator |
| 41 | Kansas | 6.50% | $973 | 87.6 | Registration Calculator |
| 42 | Washington | 6.50% | $1,152 | 114.6 | Registration Calculator |
| 43 | New Jersey | 6.63% | $1,573 | 118.8 | Registration Calculator |
| 44 | Nevada | 6.85% | $1,462 | 100.7 | Registration Calculator |
| 45 | Minnesota | 6.88% | $1,103 | 93.4 | Registration Calculator |
| 46 | Indiana | 7.00% | $926 | 88.3 | Registration Calculator |
| 47 | Mississippi | 7.00% | $1,200 | 86.2 | Registration Calculator |
| 48 | Rhode Island | 7.00% | $1,540 | 111.2 | Registration Calculator |
| 49 | Tennessee | 7.00% | $1,050 | 88.9 | Registration Calculator |
| 50 | California | 7.25% | $1,225 | 140.5 | Registration Calculator |
Methodology
How we collected and ranked the data
States are ranked by sales tax rate (ascending) as a proxy for total vehicle purchase and registration costs. Higher sales tax rates significantly increase the cost of buying a vehicle. Data from state DMV websites and Tax Foundation.
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View all 107 state comparisonsFrequently Asked Questions
Which states have the cheapest vehicle registration?
States like Arizona, Mississippi, and New Mexico have among the lowest flat registration fees. However, total costs depend on sales tax, title fees, and whether the state charges ad valorem (value-based) taxes.
Do all states charge sales tax on cars?
Most states charge sales tax on vehicle purchases, but Alaska, Delaware, Montana, New Hampshire, and Oregon have no state sales tax. Some states offer trade-in credits that reduce the taxable amount.
What is an ad valorem vehicle tax?
An ad valorem tax is based on the assessed value of your vehicle. States like Georgia, Kansas, and Virginia charge annual ad valorem taxes instead of or in addition to flat registration fees. These decrease as your vehicle depreciates.