The 20 Most (and 20 Least) Expensive States To Own a Car
The average new car price is now $47,401, but that’s only one aspect of the total cost of car ownership — and that cost can vary greatly from state to state. For example, some states have no or low sales tax, which can make a big difference when it comes to a large purchase like a car.
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To find the annual cost of car ownership in every state, GOBankingRates assumed a 20% down payment of $9,480 on the average-priced car, which means $8,316 per year for the average 60-month car loan. Sales tax, annual car insurance premiums, gas prices and costs of repairs and maintenance for each state were also calculated to find the total ownership costs for the year.
Here’s a look at the 20 most and least expensive states to own a car.
The Most Expensive States To Own a Car
When you account for financing, sales tax, insurance, gas and repairs, the cost to own a car for a year exceeds $25,000 in all of these states.
Here are the 20 most expensive states to own a car, ranked from most to least expensive.
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1. California
Sales tax (assuming $47,401 MSRP): $3,437
Average car insurance premium: $2,115
Annual cost of gas: $3,529
Average car repair costs: $416
Total costs for 1 year of ownership: $27,292
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2. Nevada
Sales tax (assuming $47,401 MSRP): $3,911
Average car insurance premium: $2,023
Annual cost of gas: $2,964
Average car repair costs: $398
Total costs for 1 year of ownership: $27,092
3. Florida
Sales tax (assuming $47,401 MSRP): $2,844
Average car insurance premium: $2,560
Annual cost of gas: $2,412
Average car repair costs: $396
Total costs for 1 year of ownership: $26,008
4. Illinois
Sales tax (assuming $47,401 MSRP): $3,437
Average car insurance premium: $1,578
Annual cost of gas: $2,726
Average car repair costs: $379
Total costs for 1 year of ownership: $25,916
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5. Washington
Sales tax (assuming $47,401 MSRP): $3,081
Average car insurance premium: $1,371
Annual cost of gas: $3,015
Average car repair costs: $392
Total costs for 1 year of ownership: $25,655
6. Michigan
Sales tax (assuming $47,401 MSRP): $2,844
Average car insurance premium: $2,133
Annual cost of gas: $2,507
Average car repair costs: $356
Total costs for 1 year of ownership: $25,637
7. Rhode Island
Sales tax (assuming $47,401 MSRP): $3,318
Average car insurance premium: $1,845
Annual cost of gas: $2,290
Average car repair costs: $387
Total costs for 1 year of ownership: $25,636
8. New Jersey
Sales tax (assuming $47,401 MSRP): $3,143
Average car insurance premium: $1,901
Annual cost of gas: $2,310
Average car repair costs: $400
Total costs for 1 year of ownership: $25,549
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9. Kansas
Sales tax (assuming $47,401 MSRP): $3,555
Average car insurance premium: $1,594
Annual cost of gas: $2,197
Average car repair costs: $374
Total costs for 1 year of ownership: $25,517
10. Kentucky
Sales tax (assuming $47,401 MSRP): $2,844
Average car insurance premium: $2,105
Annual cost of gas: $2,257
Average car repair costs: $385
Total costs for 1 year of ownership: $25,387
11. Connecticut
Sales tax (assuming $47,401 MSRP): $3,010
Average car insurance premium: $1,750
Annual cost of gas: $2,393
Average car repair costs: $418
Total costs for 1 year of ownership: $25,367
12. Georgia
Sales tax (assuming $47,401 MSRP): $3,128
Average car insurance premium: $1,647
Annual cost of gas: $2,330
Average car repair costs: $408
Total costs for 1 year of ownership: $25,309
13. Utah
Sales tax (assuming $47,401 MSRP): $3,247
Average car insurance premium: $1,469
Annual cost of gas: $2,347
Average car repair costs: $402
Total costs for 1 year of ownership: $25,261
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14. Indiana
Sales tax (assuming $47,401 MSRP): $3,318
Average car insurance premium: $1,256
Annual cost of gas: $2,483
Average car repair costs: $365
Total costs for 1 year of ownership: $25,218
15. Texas
Sales tax (assuming $47,401 MSRP): $2,963
Average car insurance premium: $1,875
Annual cost of gas: $2,140
Average car repair costs: $398
Total costs for 1 year of ownership: $25,171
16. Maryland
Sales tax (assuming $47,401 MSRP): $2,844
Average car insurance premium: $1,640
Annual cost of gas: $2,436
Average car repair costs: $399
Total costs for 1 year of ownership: $25,115
17. Tennessee
Sales tax (assuming $47,401 MSRP): $3,318
Average car insurance premium: $1,373
Annual cost of gas: $2,198
Average car repair costs: $399
Total costs for 1 year of ownership: $25,084
18. Minnesota
Sales tax (assuming $47,401 MSRP): $3,081
Average car insurance premium: $1,493
Annual cost of gas: $2,308
Average car repair costs: $378
Total costs for 1 year of ownership: $25,056
19. Nebraska
Sales tax (assuming $47,401 MSRP): $2,607
Average car insurance premium: $2,018
Annual cost of gas: $2,255
Average car repair costs: $375
Total costs for 1 year of ownership: $25,051
20. Pennsylvania
Sales tax (assuming $47,401 MSRP): $2,844
Average car insurance premium: $1,445
Annual cost of gas: $2,579
Average car repair costs: $384
Total costs for 1 year of ownership: $25,049
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The Least Expensive States To Own a Car
The difference in the annual cost to own a car between the most and least expensive states is a pretty significant amount — $5,539. One major factor in the cost savings is sales tax, with all of the top five least expensive states having no sales tax.
Here’s a look at the least expensive states to own a car, ranked from lowest to highest annual cost.
1. New Hampshire
Sales tax (assuming $47,401 MSRP): $0
Average car insurance premium: $1,307
Annual cost of gas: $2,279
Average car repair costs: $371
Total costs for 1 year of ownership: $21,753
2. Alaska
Sales tax (assuming $47,401 MSRP): $0
Average car insurance premium: $1,359
Annual cost of gas: $2,630
Average car repair costs: $387
Total costs for 1 year of ownership: $22,172
3. Oregon
Sales tax (assuming $47,401 MSRP): $0
Average car insurance premium: $1,244
Annual cost of gas: $2,812
Average car repair costs: $394
Total costs for 1 year of ownership: $22,246
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4. Montana
Sales tax (assuming $47,401 MSRP): $0
Average car insurance premium: $1,692
Annual cost of gas: $2,404
Average car repair costs: $390
Total costs for 1 year of ownership: $22,282
5. Delaware
Sales tax (assuming $47,401 MSRP): $0
Average car insurance premium: $2,137
Annual cost of gas: $2,354
Average car repair costs: $391
Total costs for 1 year of ownership: $22,678
6. Alabama
Sales tax (assuming $47,401 MSRP): $948
Average car insurance premium: $1,542
Annual cost of gas: $2,232
Average car repair costs: $399
Total costs for 1 year of ownership: $22,918
7. North Carolina
Sales tax (assuming $47,401 MSRP): $1,422
Average car insurance premium: $1,368
Annual cost of gas: $2,316
Average car repair costs: $403
Total costs for 1 year of ownership: $23,305
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8. Oklahoma
Sales tax (assuming $47,401 MSRP): $1,541
Average car insurance premium: $1,797
Annual cost of gas: $2,166
Average car repair costs: $380
Total costs for 1 year of ownership: $23,679
9. Colorado
Sales tax (assuming $47,401 MSRP): $1,375
Average car insurance premium: $1,940
Annual cost of gas: $2,183
Average car repair costs: $417
Total costs for 1 year of ownership: $23,711
10. Virginia
Sales tax (assuming $47,401 MSRP): $1,967
Average car insurance premium: $1,321
Annual cost of gas: $2,352
Average car repair costs: $401
Total costs for 1 year of ownership: $23,838
11. New Mexico
Sales tax (assuming $47,401 MSRP): $1,896
Average car insurance premium: $1,505
Annual cost of gas: $2,263
Average car repair costs: $393
Total costs for 1 year of ownership: $23,853
12. South Dakota
Sales tax (assuming $47,401 MSRP): $1,896
Average car insurance premium: $1,581
Annual cost of gas: $2,247
Average car repair costs: $378
Total costs for 1 year of ownership: $23,897
13. Iowa
Sales tax (assuming $47,401 MSRP): $2,370
Average car insurance premium: $1,321
Annual cost of gas: $2,259
Average car repair costs: $360
Total costs for 1 year of ownership: $24,106
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14. Maine
Sales tax (assuming $47,401 MSRP): $2,607
Average car insurance premium: $1,116
Annual cost of gas: $2,349
Average car repair costs: $349
Total costs for 1 year of ownership: $24,218
15. North Dakota
Sales tax (assuming $47,401 MSRP): $2,370
Average car insurance premium: $1,419
Annual cost of gas: $2,272
Average car repair costs: $365
Total costs for 1 year of ownership: $24,222
16. Mississippi
Sales tax (assuming $47,401 MSRP): $2,370
Average car insurance premium: $1,606
Annual cost of gas: $2,118
Average car repair costs: $394
Total costs for 1 year of ownership: $24,284
17. Ohio
Sales tax (assuming $47,401 MSRP): $2,726
Average car insurance premium: $1,023
Annual cost of gas: $2,477
Average car repair costs: $354
Total costs for 1 year of ownership: $24,376
18. Wisconsin
Sales tax (assuming $47,401 MSRP): $2,370
Average car insurance premium: $1,499
Annual cost of gas: $2,380
Average car repair costs: $361
Total costs for 1 year of ownership: $24,406
19. Missouri
Sales tax (assuming $47,401 MSRP): $2,005
Average car insurance premium: $2,104
Annual cost of gas: $2,207
Average car repair costs: $379
Total costs for 1 year of ownership: $24,491
20. Idaho
Sales tax (assuming $47,401 MSRP): $2,844
Average car insurance premium: $1,121
Annual cost of gas: $2,358
Average car repair costs: $389
Total costs for 1 year of ownership: $24,508
Methodology: To generate these rankings, GOBankingRates surveyed and totaled the cost of buying and owning a car for one year in all 50 states. This total included four key car expenses: (1) car sales tax, based on rates provided by PolicyGenius; taxes were based on the average car transaction amount of $47,401 in January 2024, as reported by Kelley Blue Book; (2) average annual car insurance premiums, sourced from CarInsurance.com’s 2023 report; (3) average annual gas expenses, based on an average of historical regular gas prices in each state sourced from AAA’s Fuel Gauge Report on March 5, 2024; the expense was calculated based on the assumption of a driver filling up a 14-gallon tank once a week; (4) average annual car maintenance and repair costs, sourced from CarMD’s 2022 State Repair Cost Rankings. These expenses were combined with the cost to finance a new vehicle — based on $47,401 MSRP, 20% down payment of $9,480, an average credit score of 716 as sourced from Experian, an interest rate of 6.88%, as sourced from Experian, loan length of 60 months, which equals to $693 per month or $8,316 per year — to determine the cost to own a car for a year. GOBankingRates also attempted to calculate for title and registration fees, but with such varying degrees between states’ car excise and personal property tax laws as well as rules for weight of vehicles, age of vehicle and the cost of the vehicle; GOBankingRates decided to not to include these fees in its final ranking. All data is up to date as of March 5, 2024.
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This article originally appeared on GOBankingRates.com: The 20 Most (and 20 Least) Expensive States To Own a Car
