Cost of Owning a Car for the First Year in Every State

Owning a car is a necessity for many, but it’s also expensive. Car prices vary, but there are other expenses that add up as well, like taxes and fees, gas, repairs and, of course, insurance. To find out how much it costs to own a car in each state, GOBankingRates looked at the true cost to own a new car for a year in each state.

To compare costs, the survey used the average price of $36,843 for a new car, with a 20% down payment of $7,369. The survey assumed a 60-month loan for someone with good credit, resulting in monthly payments of $598, or $7,176 per year. These costs are fixed and are not shown separately for each state.

That’s the purchase price, but what are the total costs involved in owning a car? The study shows the variable cost to own a car in each state. These include sales tax, insurance premiums, fuel and maintenance and repair costs. Certain fees, such as registration fees and title fees, were included as supplemental data but not factored into the study’s final ranking. The vehicle was assumed to be a Toyota Camry weighing 3,300 pounds, with a 14-gallon gas tank that is filled up once per week. These add up to the total cost of ownership of a new car for the first year, on average. Now, do you know how much it costs to own a car in your state?

50. California — $22,932.58

• Total sales tax paid: $3,500.09
• Annual car insurance premium: $1,518
• Annual gas expenses: $2,984.07 ($4.10 per gallon)
• Annual car maintenance and repair costs: $385.42

California drivers pay the most to operate their vehicles and the reason boils down to two things: gas and taxes. Gas in California averages $4.10 per gallon – by far the highest of any state. In fact, it’s 46 cents per gallon more than the next priciest state. And the state and local sales tax rates add up to 9.5% in Los Angeles, the third-highest of any state.

49. Washington — $22,360.03

• Total sales tax paid: $3,684.30
• Annual car insurance premium: $1,191
• Annual gas expenses: $2,571.30 ($3.53 per gallon)
• Annual car maintenance and repair costs: $368.43

Gas and taxes are the culprits for the high cost of operating a car in Washington as well. If you live in Seattle, or anywhere in King County, you’ll pay 10% sales tax on your new car. Washington also has the third-highest gasoline cost of any state in the country.

48. Nevada — $22,188.36

• Total sales tax paid: $2,984.28
• Annual car insurance premium: $1,746
• Annual gas expenses: $2,540.72 ($3.49 per gallon)
• Annual car maintenance and repair costs: $372.36

Nevada ranks in the bottom 10 states for sales tax, insurance and gas, and in the top half for repair costs. The state also imposes an annual 4% basic governmental services tax on motor vehicles, which applies to 35% of a vehicle’s suggested retail price. The only place you get a break is on the $33 annual registration fee.

47. Michigan — $21,668.02

• Total sales tax paid: $2,210.58
• Annual car insurance premium: $2,484
• Annual gas expenses: $2,095.18 ($2.87 per gallon)
• Annual car maintenance and repair costs: $333.26

Michigan has the highest insurance cost of any state. Offsetting this a little is the lowest cost for repairs and maintenance. Finding a good mechanic must be pretty easy in Michigan.

46. Missouri — $21,512.72

• Total sales tax paid: $3,566.03
• Annual car insurance premium: $1,154
• Annual gas expenses: $1,889.89 ($2.60 per gallon)
• Annual car maintenance and repair costs: $357.80

If you live in St. Louis County, you’ll pay the second-highest rate of sales tax on your new vehicle. The combined state and local sales tax rate in that county is 9.679%.

45. Colorado — $21,447.92

• Total sales tax paid: $3,061.65
• Annual car insurance premium: $1,404
• Annual gas expenses: $2,061.70 ($2.83 per gallon)
• Annual car maintenance and repair costs: $375.57

Colorado state sales tax is only 2.9%, but add on regional transportation district (RTD) tax of 1.1% and Denver city tax of 4.31%, and the cost of your new car in Denver goes up by 8.31%. It’s the fourth-highest tax rate on car sales in the country. On top of all that, residents are required to pay an annual property tax.

44. Rhode Island — $21,286.80

• Total sales tax paid: $2,579.01
• Annual car insurance premium: $1,688
• Annual gas expenses: $2,095.18 ($2.88 per gallon)
• Annual car maintenance and repair costs: $379.61

Rhode Island is in the top 10 states for sales tax, insurance premiums and maintenance and repair costs. Vehicles are also subject to an excise tax as determined by the Rhode Island Vehicle Value Commission. These combined costs make the smallest state pretty expensive for car owners.

43. Connecticut — $21,239.97

• Total sales tax paid: $2,339.53
• Annual car insurance premium: $1,771
• Annual gas expenses: $2,191.28 ($3.01 per gallon)
• Annual car maintenance and repair costs: $393.16

Connecticut has the second-highest costs for auto maintenance and repairs. It has also the fourth-most expensive auto insurance premiums. Vehicles are subject to a property tax determined and issued by a local tax collector.

42. Florida — $20,960.36

• Total sales tax paid: $2,210.58
• Annual car insurance premium: $1,823
• Annual gas expenses: $2,015.10 ($2.77 per gallon)
• Annual car maintenance and repair costs: $366.68

Florida lands in the middle of the pack for sales tax and gas prices but has the third-highest insurance rates in the country. The annual registration fee is steep, too – only five states have a higher fee.

41. Kansas — $20,873.53

• Total sales tax paid: $2,818.49
• Annual car insurance premium: $1,242
• Annual gas expenses: $1,915.37 ($2.63 per gallon)
• Annual car maintenance and repair costs: $352.67

If you live in Topeka, Kansas, you’ll pay 6.5% state sales tax plus 1.15% Shawnee County sales tax when you buy your new car. That’s what places Kansas so low on the overall rankings since insurance, gas and repair costs are all in the cheaper half nationwide.

40. Pennsylvania — $20,858.34

• Total sales tax paid: $2,210.58
• Annual car insurance premium: $1,522
• Annual gas expenses: $2,221.13 ($3.05 per gallon)
• Annual car maintenance and repair costs: $359.63

Pennsylvania drivers pay more in sales tax than drivers in more than half of all states. Insurance is also on the high side, ranking the 11th-highest on the list. While gas prices are the 10th-highest of any state, Pennsylvanians get a little break on repairs and maintenance, as only 15 states pay less.

39. New Jersey — $20,853.45

• Total sales tax paid: $2,440.85
• Annual car insurance premium: $1,346
• Annual gas expenses: $2,136.68 ($2.94 per gallon)
• Annual car maintenance and repair costs: $384.92

New Jersey is about average for sales tax, insurance premiums and gas, but has the fifth-highest repair costs in the country. This, combined with a 6.625% sales tax, bumps the Garden State into the bottom 10 for combined costs.

38. Georgia —$20,834.12

• Total sales tax paid: $2,579.01
• Annual car insurance premium: $1,340
• Annual gas expenses: $1,975.06 ($2.71 per gallon)
• Annual car maintenance and repair costs: $395.05

Georgia has the highest repair costs of any state in the country. Gas is relatively cheap, however, and insurance premiums are about average. Annual registration is a bargain at just $20, but you’ll also pay an $18 title fee.

37. Kentucky — $20,832.80

• Total sales tax paid: $2,210.58
• Annual car insurance premium: $1,752
• Annual gas expenses: $1,956.86 ($2.69 per gallon)
• Annual car maintenance and repair costs: $368.36

Kentucky drivers pay around the average for sales tax, repairs and maintenance, but their insurance premiums are the sixth-highest in the country. Only 11 states pay less for gas. Property tax on motor vehicles is determined by the county.

36. Illinois — $20,758.84

• Total sales tax paid: $2,671.12
• Annual car insurance premium: $1,004
• Annual gas expenses: $2,186.18 ($3.00 per gallon)
• Annual car maintenance and repair costs: $352.54

Residents of Illinois pay relatively high sales tax and registration fees – both of these costs are among the worst of all the states. And you’ll pay a $95 title fee on top of the annual registration when you buy your car. But low insurance premiums and gas prices help offset these costs and keep Illinois out of the bottom 10 overall.

35. Utah — $20,641.32

• Total sales tax paid: $2,247.42
• Annual car insurance premium: $1,199
• Annual gas expenses: $2,275.73 ($3.13 per gallon)
• Annual car maintenance and repair costs: $374.17

In Utah, state and local sales tax rates total 6.1%, putting the state around the mid-point comparatively. Only eight states pay more for gas. Residents also must pay an age-based uniform fee before the vehicle can be registered.

34. Arizona — $20,626.99

• Total sales tax paid: $2,063.21
• Annual car insurance premium: $1,356
• Annual gas expenses: $2,301.94 ($3.16 per gallon)
• Annual car maintenance and repair costs: $360.85

Arizona has the lowest registration fee of any state in the country at just $9.50, as well as the lowest title fee at just $4. The insurance premiums and sales tax are about average, but gas prices are the seventh-highest.

33. Wyoming — $20,623.31

• Total sales tax paid: $2,210.58
• Annual car insurance premium: $1,494
• Annual gas expenses: $2,007.10 ($2.76 per gallon)
• Annual car maintenance and repair costs: $366.63

Wyoming has a state sales tax of 4%, and counties can impose their own tax as well. The sales tax in Teton County, for examples, is 2%, bringing the total for that area to 6%. Insurance premiums and repair costs are costlier than in most other states.

32. Tennessee — $20,603.65

• Total sales tax paid: $2,579.01
• Annual car insurance premium: $1,214
• Annual gas expenses: $1,892.80 ($2.60 per gallon)
• Annual car maintenance and repair costs: $372.84

Tennessee drivers pay higher-than-average sales tax and repair costs but lower-than-average car insurance premiums. Only five states pay more for gas.

31. Maryland — $20,574.39

• Total sales tax paid: $2,210.58
• Annual car insurance premium: $1,390
• Annual gas expenses: $2,049.32 ($2.82 per gallon)
• Annual car maintenance and repair costs: $379.49

The sales tax charged by the state of Maryland puts it near the middle of the pack at 6%, but insurance is relatively high. The $135 registration fee is among the 10 priciest, and when you factor in the $100 title fee, it starts to add up. Maintenance and repair costs are also some of the most expensive in the nation.

30. Indiana — $20,552.15

• Total sales tax paid: $2,579.01
• Annual car insurance premium: $964
• Annual gas expenses: $2,103.19 ($2.89 per gallon)
• Annual car maintenance and repair costs: $360.95

Indiana’s relatively high state sales tax of 7% is offset by low insurance premiums, which are the sixth-lowest of any state. The registration fee of $21.35 is moderate, as is the $15 title fee. Gas prices are above average, but repair and maintenance costs are below average. There’s also a vehicle excise tax that varies by county.

29. West Virginia — $20,543.50

• Total sales tax paid: $2,210.58
• Annual car insurance premium: $1,375
• Annual gas expenses: $2,054.42 ($2.82 per gallon)
• Annual car maintenance and repair costs: $358.50

West Virginia drivers pay just about average rates of sales tax and insurance premiums. Gas is a little higher than the average, and repairs are a little less expensive.

28. Arkansas— $20,532.21

• Total sales tax paid: $2,394.80
• Annual car insurance premium: $1,370
• Annual gas expenses: $1,859.31 ($2.55 per gallon)
• Annual car maintenance and repair costs: $363.10

Arkansas has the fifth-lowest gas prices of any state in the country. The cost to maintain and repair a vehicle in Arkansas is just about in the middle of the pack. The $25 registration fee and $10 title fee are among the lowest.

27. North Carolina — $20,517.14

• Total sales tax paid: $2,671.12
• Annual car insurance premium: $960
• Annual gas expenses: $1,965.60 ($2.70 per gallon)
• Annual car maintenance and repair costs: $375.42

North Carolina state sales tax is 4.75%, but if you live in Mecklenburg County, which includes Charlotte, you’ll pay a total of 7.25%. Low insurance premiums offset this somewhat, as they are the fourth-lowest of any state. Residents also have to pay an annual property tax on cars, but the rate varies by county.

26. Hawaii — $20,515.83

• Total sales tax paid: $1,473.72
• Annual car insurance premium: $1,458
• Annual gas expenses: $2,649.92 ($3.64 per gallon)
• Annual car maintenance and repair costs: $389.19

The cost to own a car in Hawaii is not as steep as you might think. Although the islands have the second-highest gas prices and third-highest repair costs of any state, the sales tax is the fifth-lowest, tied with Louisiana, South Dakota and Alabama.

25. New York — $20,502.83

• Total sales tax paid: $1,657.94
• Annual car insurance premium: $1,759
• Annual gas expenses: $2,163.62 ($2.97 per gallon)
• Annual car maintenance and repair costs: $377.28

New York has a relatively low sales tax rate of 4.5%. The registration fee varies by county, but Albany County charges $138.50, plus there’s a $50 title fee. Insurance is the fifth-most expensive of any state.

24. Minnesota — $20,484.99

• Total sales tax paid: $2,394.80
• Annual car insurance premium: $1,187
• Annual gas expenses: $2,004.91 ($2.75 per gallon)
• Annual car maintenance and repair costs: $353.28

Minnesota has the highest registration fee of any state in the country, and they also charge a title fee of $8.25. The state does have insurance premiums, gas and repair costs that are in the less expensive half of all states, however.

23. Massachusetts — $20,484.48

• Total sales tax paid: $2,302.69
• Annual car insurance premium: $1,191
• Annual gas expenses: $2,082.08 ($2.86 per gallon)
• Annual car maintenance and repair costs: $363.71

Massachusetts drivers pay slightly more than average in sales tax at 6.25% but lower than other states in insurance premiums. There’s also a steep $75 title fee and an excise tax. The excise tax rate is $25 per $1,000 of your vehicle’s value and must be paid each year.

22. Louisiana — $20,414.94

• Total sales tax paid: $1,473.72
• Annual car insurance premium: $2,190
• Annual gas expenses: $1,839.66 ($2.53 per gallon)
• Annual car maintenance and repair costs: $366.56

Louisiana has the fifth-lowest gas prices in the country and is tied for fifth-lowest sales tax. What’s keeping it in the middle of the pack is the fact that it has the second-highest insurance premiums of any state.

21. Texas — $20,406.75

• Total sales tax paid: $2,302.69
• Annual car insurance premium: $1,300
• Annual gas expenses: $1,897.17 ($2.61 per gallon)
• Annual car maintenance and repair costs: $361.89

Just eight states pay less for gas than Texas. The sales tax rate, registration fee, insurance premiums and maintenance and repair costs are right around average.

20. Idaho — $20,342.56

• Total sales tax paid: $2,210.58
• Annual car insurance premium: $941
• Annual gas expenses: $2,283.74 ($3.14 per gallon)
• Annual car maintenance and repair costs: $362.24

Idaho has the second-lowest average rates for auto insurance premiums. Sales tax and repair costs are about average, but only seven states pay more for gas.

19. Wisconsin — $20,142.10

• Total sales tax paid: $1,842.15
• Annual car insurance premium: $1,351
• Annual gas expenses: $2,066.06 ($2.84 per gallon)
• Annual car maintenance and repair costs: $337.89

Wisconsin’s sales tax rates, insurance premiums and gas costs are about average. Drivers pay the fourth-lowest prices in the country for repairs and maintenance, however.

18. Delaware — $20,130.58

• Total sales tax paid: $1,565.83
• Annual car insurance premium: $1,646
• Annual gas expenses: $1,999.82 ($2.75 per gallon)
• Annual car maintenance and repair costs: $373.94

Delaware drivers pay just 4.25% sales tax, the ninth-lowest of any of the states that charge it. This savings is offset by the ninth-highest car insurance premiums, however.

17. Vermont — $20,091.16

• Total sales tax paid: $2,210.58
• Annual car insurance premium: $963
• Annual gas expenses: $2,015.10 ($2.77 per gallon)
• Annual car maintenance and repair costs: $357.48

Vermont drivers pay 6% sales tax, which is about average. They do have the fifth-least expensive insurance costs, however, and repair and maintenance costs are below average.

16. North Dakota — $20,076.69

• Total sales tax paid: $1,842.15
• Annual car insurance premium: $1,315
• Annual gas expenses: $2,034.76 ($2.80 per gallon)
• Annual car maintenance and repair costs: $339.78

In North Dakota, sales tax is 5%, which is a little lower than average. Those who purchase and register a vehicle in North Dakota must also pay a 5% motor vehicle excise tax. Insurance premiums and gas prices are around the national average, but repair and maintenance costs are the fifth-lowest of any state.

15. Nebraska — $20,052.13

• Total sales tax paid: $2,026.37
• Annual car insurance premium: $1,113
• Annual gas expenses: $2,018.02 ($2.77 per gallon)
• Annual car maintenance and repair costs: $349.75

Nebraska has lower than average costs for everything, including the third-lowest registration fee at just $15 (plus a $10 title fee) and the eighth-lowest costs for repairs and maintenance.

14. Ohio — $19,941.81

• Total sales tax paid: $2,118.47
• Annual car insurance premium: $952
• Annual gas expenses: $1,991.08 ($2.74 per gallon)
• Annual car maintenance and repair costs: $335.26

Ohio has the third-lowest insurance premiums and second-lowest repair and maintenance costs of any state. Sales tax is high, however, with the state charging 5.75% and Franklin County, which includes Columbus, tacking on another 1.75% for a total of 7.5%.

13. Mississippi — $19,914.04

• Total sales tax paid: $1,842.15
• Annual car insurance premium: $1,323
• Annual gas expenses: $1,833.83 ($2.52 per gallon)
• Annual car maintenance and repair costs: $370.06

Mississippi has the second-lowest cost of gas and registration fee of any state. Sales tax is 5%, a little lower than average.

12. Maine — $19,897.26

• Total sales tax paid: $2,026.37
• Annual car insurance premium: $925
• Annual gas expenses: $2,063.15 ($2.83 per gallon)
• Annual car maintenance and repair costs: $337.74

Maine has the lowest average insurance premiums of any state and the third-lowest costs for vehicle repairs and maintenance. Its state sales tax of 5.5% is about average. Those registering a vehicle in Maine are also subject to an excise tax.

11. Iowa — $19,721.51

• Total sales tax paid: $1,842.15
• Annual car insurance premium: $1,015
• Annual gas expenses: $1,979.43 ($2.72 per gallon)
• Annual car maintenance and repair costs: $339.93

Sales tax in Iowa is 5%, which is lower than average. Car insurance premiums are also low, with just eight states paying less. Iowa does have a high registration fee, and they tack a $25 title fee on top of that.

10. South Dakota — $19,653.48

• Total sales tax paid: $1,473.72
• Annual car insurance premium: $1,059
• Annual gas expenses: $2,026.75 ($2.78 per gallon)
• Annual car maintenance and repair costs: $364.79

South Dakota is tied for the fifth-lowest sales tax among the states that charge one, and also has the tenth-lowest auto insurance premiums. Residents must pay a 4% motor vehicle excise tax as well.

9. Virginia — $19,348.13

• Total sales tax paid: $1,528.98
• Annual car insurance premium: $972
• Annual gas expenses: $1,920.46 ($2.64 per gallon)
• Annual car maintenance and repair costs: $381.68

Drivers in Virginia pay the seventh-lowest car insurance premium rates in the country. Virginia also charges a moderate sales tax of 4.15%, the ninth-lowest of any state that charges sales tax.

8. Alabama — $19,285.91

• Total sales tax paid: $1,243.45
• Annual car insurance premium: $1,299
• Annual gas expenses: $1,824.37 ($2.51 per gallon)
• Annual car maintenance and repair costs: $374.09

Alabama drivers enjoy the lowest average cost of gas anywhere in the country, as well as the fourth-lowest sales tax of any state that charges it.

7. New Mexico — $19,282.30

• Total sales tax paid: $1,105.29
• Annual car insurance premium: $1,253
• Annual gas expenses: $2,018.02 ($2.77 per gallon)
• Annual car maintenance and repair costs: $360.99

New Mexico drivers have to pay sales tax, but they pay the second-lowest tax rate of any state that charges one at just 3%. Insurance, gas, and repair and maintenance costs are around the national average. There’s also a motor vehicle excise tax, which is 3% of the price paid for the vehicle less any trade-in credit. 

6. Oklahoma — $18,900.11

• Total sales tax paid: $1,197.40
• Annual car insurance premium: $1,643
• Annual gas expenses: $1,893.53 ($2.60 per gallon)
• Annual car maintenance and repair costs: $358.04

Oklahoma has the lowest sales tax of any state that charges one at 1.25%, which is a significant contributor to its placement as the tenth-least expensive state to own a car. It also has lower-than-average repair and maintenance costs. Residents purchasing a new vehicle, however, are subject to a 3.25% excise tax.

5. Oregon — $18,670.23

• Total sales tax paid: $0
• Annual car insurance premium: $1,264
• Annual gas expenses: $2,494.86 ($3.43 per gallon)
• Annual car maintenance and repair costs: $366.37

Oregon is one of four states that does not charge sales tax, which is why it comes in at No. 5 on the list. Not having to pay sales tax helps since other costs in Oregon are quite high. Gas is the fifth-most expensive of any state, registration fees are fourth-highest and title fees are third-highest.

4. South Carolina — $18,522.01

• Total sales tax paid: $500.00
• Annual car insurance premium: $1,260
• Annual gas expenses: $1,846.94 ($2.54 per gallon)
• Annual car maintenance and repair costs: $370.07

South Carolina doesn’t charge a car sales tax per se, but it does levy an infrastructure maintenance fee. This fee is 5% of the cost of the vehicle but no more than $500. South Carolina also has the fourth-lowest gas prices.

3. Alaska — $18,510.25

• Total sales tax paid: $0
• Annual car insurance premium: $1,109
• Annual gas expenses: $2,494.13 ($3.43 per gallon)
• Annual car maintenance and repair costs: $362.12

Alaska is another state with no sales tax, and it also has relatively low insurance rates, with only 11 states paying less. It does, however, have the third-highest registration fee of any state and the sixth-highest gas prices.

2. Montana — $18,224.11

• Total sales tax paid: $0
• Annual car insurance premium: $1,224
• Annual gas expenses: $2,081.35 ($2.86 per gallon)
• Annual car maintenance and repair costs: $373.76

Montana has no sales tax, and insurance premiums are slightly lower than average. But the average price of gas is higher here than the nationwide average.

1. New Hampshire — $18,006.80

• Total sales tax paid: $0
• Annual car insurance premium: $1,101
• Annual gas expenses: $2,015.10 ($2.77 per gallon)
• Annual car maintenance and repair costs: $345.70

New Hampshire is the least expensive state in which to own a car, primarily due to its lack of sales tax. Unlike some of the other tax-free states, however, New Hampshire also has low insurance rates and relatively low gas prices. It even costs less to repair and maintain your vehicle in New Hampshire – only seven states have lower costs.

How to Keep Your Car Costs Low

While there may not be a lot you can do about the price of your new car or the sales tax you have to pay, there are ways to spend less to get around. Here are some tips on cutting down the cost of owning a car:

• Buy the right car for your budget. Consider the total cost of car ownership, including all of the factors above, when you are deciding what car to buy.
• Drive safely. Driving at a constant speed, within the speed limit, will improve your gas mileage as well as reduce wear and tear on your vehicle.
• Make sure you have the right insurance coverage. You may be paying for coverage you don’t need, especially if you have an older car that you own outright.
• Check your owner’s manual for the correct maintenance schedule. You want to keep your car running well, but you might be spending more than you should. Most cars no longer need an oil change every 3,000 miles, for example.

Keep reading to discover ways to slash your car costs.

More on Saving Money and Cars

• This Is How I Slashed Auto Insurance Costs by Nearly $400
• Expert Tips for Getting the Best Car Insurance Rates
• How I Was Scammed When I Bought My First Car
• How to Buy a Car

Chris Jennings contributed to the reporting for this article.

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 individual state and, where applicable, county and local websites; taxes were based on the average car transaction amount of $36,843 in April 2019 as reported by Kelley Blue Book; (2) average annual car insurance premiums, sourced from CarInsurance.com’s 2018 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 May 7, 2019; 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 2018 State Repair Cost Rankings. These expenses were combined with the cost to finance a new vehicle — based on a $36,843 MSRP, 20% down payment of $7,369, good credit and 60-month loan, which equates to $598 per month or $7,176 per year — to determine the cost to own a car for a year. GOBankingRates also researched title and registration fees, but with such varying degrees between states’ car excise and personal property tax laws as well as rules for vehicle weight, vehicle age and vehicle cost, GOBankingRates ultimately decided not to include these fees in the study’s final ranking. Instead, these fees were included as supplemental data.