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.

Las Vegas, Nevada, USA - March, 15 2009: cars driving on The Strip in front of the Paris Las Vegas Hotel Casino by night.

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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Los Angeles Downtown Skyline Freeway 110 stock photo

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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Entrance greeting sign on the highway border between Nevada and Arizona state USA.

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
Orlando, Florida, USA downtown cityscape over the highway.

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
Chicago, Illinois is one of the best cities for Communication Majors

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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Mount Rainier National Park, Washington, USA - July 31, 2016: Visitors to Mount Rainier National Park touring the park along the scenic highway in their vehicle with Mount Rainier in the distance background.

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
Streets of downtown Holland stock photo

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
Providence, USA - June 25, 2016.

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
Aerial of Trenton New Jersey.

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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Wichita, Kansas, USA - April 27, 2018: Evening view of the Lewis Street Bridge bracketing downtown Wichita, crossing the Arkansas River.

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
Traffic crossing an interstate highway four lane on a bridge over the Ohio River, Louisville, Kentucky, USA.

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
Connecticut

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
Atlanta Georgia

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
A red car vehicle touring the scenic mountain highways.

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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Potter's Covered Bridge crosses the West Fork of the White River surrounded by colorful fall foliage in Noblesville, Indiana.

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
Houston, Texas, USA downtown skyline over the highways at dusk.

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
Travelling to the Maryland Eastern Shore across the Chesapeake Bay Bridge from Annapolis, the contrails from jet aircraft arriving from Europe line the sky.

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
Car driving in a country road in the Great Smoky Mountains National Park in Tennessee, USA.

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
Minnesota

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
Lincoln, Nebraska, USA - July 9, 2013: People and traffic in downtown area of Lincoln, the capital city of the state of Nebraska.

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
Rachel Carson Bridge (aka Ninth Street Bridge) spans Allegheny river in Pittsburgh, Pennsylvania.

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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Glacier National Park, United States - May 11, 2016: On a sunny spring day a Toyota Prius hybrid car drives through a tree lined road in Montana while on a road trip.

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.

Hampton Beach, NH, USA - July 7, 2011: Ocean Blvd.

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
Alaska

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
Bridges that span the Willamette River in Albany, Oregon.

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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Glacier National Park, Montana, USA - August 4, 2016: Visitors to Glacier National Park touring the park along the breathtaking 'Going To The Sun Road' in cars or in park tour buses.

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
06 car in Delaware shutterstock_1159612747

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
Montgomery, Alabama, USA - April 22, 2015:  View of the Alabama State Capitol looking down Dexter Ave.

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
Cars travel on the Linn Cove Viaduct highway road on the Grandfather Mountain along the Blue Ridge Parkway in autumn North Carolina USA.

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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Oklahoma City, USA - February 19, 2014: Red sports car driving on empty downtown streets during sunset time.

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
jeep, throwing the water stream passing through.

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
RV Life on the Road Series: Traveling north on the Varina-Enon Bridge across the James River entering Henrico County in Virginia.

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
Shiprock, New Mexico, USA - May 14, 2016 : Boy enjoys sunset at Shiprock sitting on the hood of his car.

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
Tourists driving a red car and white sports utility vehicle or SUV around a hairpin curve on a winding road through a scenic forest near Mt.

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
An old car going down a country road in rural Warren County, Iowa.

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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Cars driving on road in Acadia National Park, Maine, USA.

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
Buffalo herd crossing the road in Teddy Roosevelt National Park.

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
Downtown retail building storefronts form geometric patterns against a deep blue sky.

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
Glimpse of city life with traffic on Walnut Street with office buildings in the background in downtown Cincinnati, Ohio, USA illuminated at twilight.

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
Wisconsin-Madison

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
A wide angle view of the St. Louis, Missouri metropolitan area shot from the Illinois side of the Mississippi River from an altitude of about 1000 feet.

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
Boise Idaho

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

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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