Cost To Own a Car for a Year in Every State

Among the most essential expenses for Americans is that of their car. Without it, they can’t get to and from the jobs they need to, well, pay for their car. And even if you’re so lucky to live near enough to your job that you can walk or take mass transit, the limitations placed on the rest of your life by going without wheels can be burdensome. However, buying a car is an absolute catastrophe purely from a financial perspective. The resale value plummets from the moment you drive it off the lot, and that’s just part of the story. From the insurance to the repairs to the gas to the monthly payments, your car is going to drain your bank account year after year for as long as you own it.

To help, GOBankingRates found what the costs of owning a car come to in your state for a full calendar year. Clearly, they’re going to be very different, depending on your ride, but by looking at geographical factors — like sales tax, average repair costs and gas — you can develop a better sense of what to expect in terms of ongoing costs. The study assumes the same MSRP ($37,876, the average transaction amount from Kelley Blue Book) with a 20% down payment and one year of financing payments before adding in estimated costs like gas (assuming you have a 14-gallon tank and fill up once a week) and repairs. All told, it shows how the cost of driving is a lot higher in some states than others.

So, take a look and see whether your home state has a driving economy that’s making it that much harder to make ends meet or one that allows you to look forward to affordable auto ownership for decades to come.

Last updated: Nov. 24, 2020

California

• State sales tax: 7.25% ($2,746.01)
• Average car insurance premium: $2,135
• Average cost of gas per gallon: $3.44
• Average cost of gas annually: $2,507.23
• Average car repair costs: $403.13

Total costs for a year: $22,230.57

Michigan

• State sales tax: 6.00% ($2,272.56)
• Average car insurance premium: $3,466
• Average cost of gas per gallon: $2.23
• Average cost of gas annually: $1,623.44
• Average car repair costs: $356.16

Total costs for a year: $22,157.36

Nevada

• State sales tax: 6.85% ($2,594.51)
• Average car insurance premium: $2,486
• Average cost of gas per gallon: $2.88
• Average cost of gas annually: $2,095.18
• Average car repair costs: $392.45

Total costs for a year: $22,007.34

Rhode Island

• State sales tax: 7.00% ($2,651.32)
• Average car insurance premium: $2,092
• Average cost of gas per gallon: $2.43
• Average cost of gas annually: $1,767.58
• Average car repair costs: $390.12

Total costs for a year: $21,340.22

Washington

• State sales tax: 6.80% ($2,575.57)
• Average car insurance premium: $1,640
• Average cost of gas per gallon: $3.09
• Average cost of gas annually: $2,248.79
• Average car repair costs: $389.49

Total costs for a year: $21,293.05

New Jersey

• State sales tax: 6.63% ($2,509.29)
• Average car insurance premium: $2,001
• Average cost of gas per gallon: $2.44
• Average cost of gas annually: $1,779.23
• Average car repair costs: $401.59

Total costs for a year: $21,130.31

Read: Reliable Cars To Own for More Than 15 Years

Kentucky

• State sales tax: 6.00% ($2,272.56)
• Average car insurance premium: $2,385
• Average cost of gas per gallon: $2.21
• Average cost of gas annually: $1,606.70
• Average car repair costs: $390.02

Total costs for a year: $21,093.48

Connecticut

• State sales tax: 6.35% ($2,405.13)
• Average car insurance premium: $2,010
• Average cost of gas per gallon: $2.50
• Average cost of gas annually: $1,821.46
• Average car repair costs: $413.91

Total costs for a year: $21,089.69

Florida

• State sales tax: 6.00% ($2,272.56)
• Average car insurance premium: $2,178
• Average cost of gas per gallon: $2.28
• Average cost of gas annually: $1,656.93
• Average car repair costs: $387.56

Total costs for a year: $20,934.25

Louisiana

• State sales tax: 5.00% ($1,893.80)
• Average car insurance premium: $2,608
• Average cost of gas per gallon: $2.10
• Average cost of gas annually: $1,528.80
• Average car repair costs: $388.57

Total costs for a year: $20,858.37

Arizona

• State sales tax: 5.60% ($2,121.06)
• Average car insurance premium: $1,791
• Average cost of gas per gallon: $2.73
• Average cost of gas annually: $1,986.71
• Average car repair costs: $380.63

Total costs for a year: $20,718.60

Pennsylvania

• State sales tax: 6.00% ($2,272.56)
• Average car insurance premium: $1,700
• Average cost of gas per gallon: $2.58
• Average cost of gas annually: $1,875.33
• Average car repair costs: $377.08

Total costs for a year: $20,664.17

Maryland

• State sales tax: 6.00% ($2,272.56)
• Average car insurance premium: $1,842
• Average cost of gas per gallon: $2.34
• Average cost of gas annually: $1,704.25
• Average car repair costs: $392.40

Total costs for a year: $20,650.41

Arkansas

• State sales tax: 6.50% ($2,461.94)
• Average car insurance premium: $1,744
• Average cost of gas per gallon: $2.13
• Average cost of gas annually: $1,551.37
• Average car repair costs: $383.78

Total costs for a year: $20,580.29

Minnesota

• State sales tax: 6.50% ($2,461.94)
• Average car insurance premium: $1,620
• Average cost of gas per gallon: $2.27
• Average cost of gas annually: $1,654.02
• Average car repair costs: $375.73

Total costs for a year: $20,550.89

Tennessee

• State sales tax: 7.00% ($2,651.32)
• Average car insurance premium: $1,477
• Average cost of gas per gallon: $2.16
• Average cost of gas annually: $1,572.48
• Average car repair costs: $394.18

Total costs for a year: $20,534.18

Illinois

• State sales tax: 6.25% ($2,367.25)
• Average car insurance premium: $1,531
• Average cost of gas per gallon: $2.49
• Average cost of gas annually: $1,815.63
• Average car repair costs: $374.75

Total costs for a year: $20,527.83

Texas

• State sales tax: 6.25% ($2,367.25)
• Average car insurance premium: $1,823
• Average cost of gas per gallon: $2.06
• Average cost of gas annually: $1,501.86
• Average car repair costs: $385.62

Total costs for a year: $20,516.93

Kansas

• State sales tax: 6.50% ($2,461.94)
• Average car insurance premium: $1,669
• Average cost of gas per gallon: $2.15
• Average cost of gas annually: $1,563.02
• Average car repair costs: $375.22

Total costs for a year: $20,508.38

Hawaii

• State sales tax: 4.00% ($1,515.04)
• Average car insurance premium: $1,589
• Average cost of gas per gallon: $3.54
• Average cost of gas annually: $2,577.85
• Average car repair costs: $370.31

Total costs for a year: $20,491.40

West Virginia

• State sales tax: 6.00% ($2,272.56)
• Average car insurance premium: $1,653
• Average cost of gas per gallon: $2.32
• Average cost of gas annually: $1,689.69
• Average car repair costs: $372.93

Total costs for a year: $20,427.38

Massachusetts

• State sales tax: 6.25% ($2,367.25)
• Average car insurance premium: $1,466
• Average cost of gas per gallon: $2.43
• Average cost of gas annually: $1,765.40
• Average car repair costs: $381.87

Total costs for a year: $20,419.72

Indiana

• State sales tax: 7.00% ($2,651.32)
• Average car insurance premium: $1,270
• Average cost of gas per gallon: $2.17
• Average cost of gas annually: $1,578.30
• Average car repair costs: $361.38

Total costs for a year: $20,300.20

Vermont

• State sales tax: 6.00% ($2,272.56)
• Average car insurance premium: $1,374
• Average cost of gas per gallon: $2.53
• Average cost of gas annually: $1,844.02
• Average car repair costs: $359.64

Total costs for a year: $20,289.42

Find Out: 25 Freebies To Ask For When Buying a New Car

New York

• State sales tax: 4.00% ($1,515.04)
• Average car insurance premium: $2,081
• Average cost of gas per gallon: $2.56
• Average cost of gas annually: $1,865.14
• Average car repair costs: $375.66

Total costs for a year: $20,276.04

Idaho

• State sales tax: 6.00% ($2,272.56)
• Average car insurance premium: $1,269
• Average cost of gas per gallon: $2.56
• Average cost of gas annually: $1,860.77
• Average car repair costs: $385.27

Total costs for a year: $20,226.80

Nebraska

• State sales tax: 5.50% ($2,083.18)
• Average car insurance premium: $1,493
• Average cost of gas per gallon: $2.29
• Average cost of gas annually: $1,667.85
• Average car repair costs: $369.60

Total costs for a year: $20,052.83

Delaware

• State sales tax: 4.25% ($1,609.73)
• Average car insurance premium: $1,959
• Average cost of gas per gallon: $2.24
• Average cost of gas annually: $1,632.90
• Average car repair costs: $386.12

Total costs for a year: $20,026.95

Utah

• State sales tax: 4.85% ($1,836.99)
• Average car insurance premium: $1,515
• Average cost of gas per gallon: $2.51
• Average cost of gas annually: $1,825.82
• Average car repair costs: $399.15

Total costs for a year: $20,016.16

North Dakota

• State sales tax: 5.00% ($1,893.80)
• Average car insurance premium: $1,565
• Average cost of gas per gallon: $2.31
• Average cost of gas annually: $1,680.22
• Average car repair costs: $373.09

Total costs for a year: $19,951.31

Mississippi

• State sales tax: 5.00% ($1,893.80)
• Average car insurance premium: $1,681
• Average cost of gas per gallon: $2.08
• Average cost of gas annually: $1,511.33
• Average car repair costs: $392.33

Total costs for a year: $19,917.66

Georgia

• State sales tax: 4.00% ($1,515.04)
• Average car insurance premium: $1,873
• Average cost of gas per gallon: $2.20
• Average cost of gas annually: $1,602.33
• Average car repair costs: $402.66

Total costs for a year: $19,832.23

Wyoming

• State sales tax: 4.00% ($1,515.04)
• Average car insurance premium: $1,721
• Average cost of gas per gallon: $2.43
• Average cost of gas annually: $1,767.58
• Average car repair costs: $387.83

Total costs for a year: $19,830.65

Ohio

• State sales tax: 5.75% ($2,177.87)
• Average car insurance premium: $1,197
• Average cost of gas per gallon: $2.24
• Average cost of gas annually: $1,630.72
• Average car repair costs: $354.24

Total costs for a year: $19,799.03

Missouri

• State sales tax: 4.23% ($1,600.26)
• Average car insurance premium: $1,805
• Average cost of gas per gallon: $2.10
• Average cost of gas annually: $1,528.80
• Average car repair costs: $378.79

Total costs for a year: $19,752.05

Iowa

• State sales tax: 5.00% ($1,893.80)
• Average car insurance premium: $1,360
• Average cost of gas per gallon: $2.21
• Average cost of gas annually: $1,606.70
• Average car repair costs: $363.13

Total costs for a year: $19,662.83

Wisconsin

• State sales tax: 5.00% ($1,893.80)
• Average car insurance premium: $1,320
• Average cost of gas per gallon: $2.26
• Average cost of gas annually: $1,646.01
• Average car repair costs: $356.84

Total costs for a year: $19,655.85

South Dakota

• State sales tax: 4.00% ($1,515.04)
• Average car insurance premium: $1,614
• Average cost of gas per gallon: $2.30
• Average cost of gas annually: $1,675.86
• Average car repair costs: $378.63

Total costs for a year: $19,622.73

New Mexico

• State sales tax: 4.00% ($1,515.04)
• Average car insurance premium: $1,605
• Average cost of gas per gallon: $2.28
• Average cost of gas annually: $1,656.20
• Average car repair costs: $382.42

Total costs for a year: $19,597.86

Colorado

• State sales tax: 2.90% ($1,098.40)
• Average car insurance premium: $1,973
• Average cost of gas per gallon: $2.29
• Average cost of gas annually: $1,670.03
• Average car repair costs: $396.41

Total costs for a year: $19,577.05

Maine

• State sales tax: 5.00% ($1,893.80)
• Average car insurance premium: $1,062
• Average cost of gas per gallon: $2.37
• Average cost of gas annually: $1,722.45
• Average car repair costs: $354.38

Total costs for a year: $19,471.83

Oklahoma

• State sales tax: 3.25% ($1,230.97)
• Average car insurance premium: $1,822
• Average cost of gas per gallon: $2.08
• Average cost of gas annually: $1,513.51
• Average car repair costs: $378.66

Total costs for a year: $19,384.34

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Virginia

• State sales tax: 4.15% ($1,571.85)
• Average car insurance premium: $1,194
• Average cost of gas per gallon: $2.16
• Average cost of gas annually: $1,573.94
• Average car repair costs: $397.24

Total costs for a year: $19,176.23

North Carolina

• State sales tax: 3.00% ($1,136.28)
• Average car insurance premium: $1,425
• Average cost of gas per gallon: $2.21
• Average cost of gas annually: $1,605.24
• Average car repair costs: $397.56

Total costs for a year: $19,003.28

Alabama

• State sales tax: 2.00% ($757.52)
• Average car insurance premium: $1,724
• Average cost of gas per gallon: $2.12
• Average cost of gas annually: $1,541.90
• Average car repair costs: $394.65

Total costs for a year: $18,857.27

Oregon

• State sales tax: 0.50% ($189.38)
• Average car insurance premium: $1,548
• Average cost of gas per gallon: $2.97
• Average cost of gas annually: $2,162.89
• Average car repair costs: $389.93

Total costs for a year: $18,729.40

Montana

• State sales tax: 0.00%
• Average car insurance premium: $1,963
• Average cost of gas per gallon: $2.40
• Average cost of gas annually: $1,747.93
• Average car repair costs: $382.97

Total costs for a year: $18,533.10

Alaska

• State sales tax: 0.00%
• Average car insurance premium: $1,533
• Average cost of gas per gallon: $2.93
• Average cost of gas annually: $2,135.22
• Average car repair costs: $378.82

Total costs for a year: $18,486.24

South Carolina

• State sales tax: 5.00%, $500 maximum
• Average car insurance premium: $1,620
• Average cost of gas per gallon: $2.10
• Average cost of gas annually: $1,526.62
• Average car repair costs: $394.27

Total costs for a year: $18,480.09

New Hampshire

• State sales tax: 0.00%
• Average car insurance premium: $1,070
• Average cost of gas per gallon: $2.36
• Average cost of gas annually: $1,714.44
• Average car repair costs: $364.77

Total costs for a year: $17,588.41

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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 websites; taxes were based on the average car transaction amount of $37,876 in February 2020 as reported by Kelley Blue Book; (2) average annual car insurance premiums, sourced from CarInsurance.com’s 2019 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 9, 2020; 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 2019 State Repair Cost Rankings. These expenses were combined with the cost to finance a new vehicle — based on a $37,876 MSRP, a 20% down payment of $7,575.20, an average credit score of 703 as sourced from Experian, an interest rate of 5.04% as sourced from U.S.News & World Report and a loan length of 60 months, which equals $572 per month or $6,864 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 vehicles 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 9, 2020.

About the Author

Joel Anderson

Joel Anderson is a business and finance writer with over a decade of experience writing about the wide world of finance. Based in Los Angeles, he specializes in writing about the financial markets, stocks, macroeconomic concepts and focuses on helping make complex financial concepts digestible for the retail investor.

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