Car Sales Tax by State 2026 — Every State’s Vehicle Tax

Buying the same $35,000 car costs $0 in purchase tax in Montana and over $2,300 in Tennessee — and the "sales tax" is often not a sales tax at all: Georgia charges a one-time TAVT, South Carolina a capped maintenance fee, DC a weight-and-economy excise, North Carolina a highway use tax. Every state's real vehicle tax, from its own DMV or revenue department.

Five states charge no purchase tax at all (AK, MT, NH, OR has only its 0.5% dealer privilege tax, DE a document fee instead). Trade-in credit is worth real money where it exists: on the hub's $35,000 / $8,000-trade-in test purchase it saves $500 in Texas and $520 in Maryland — and exactly $0 in Virginia and California, which don't allow it.

All 51 jurisdictions — tax on $35,000 with an $8,000 trade-in

State	State rate	Tax due	Trade-in credit
California	7.25% +	$2,537.50	No
Georgia	7%	$2,450.00	No
Indiana	7%	$2,450.00	No
Rhode Island	7%	$1,890.00	Yes
Tennessee	7%	$2,494.00	No
Washington	7% +	$1,890.00	Yes
Minnesota	6.875%	$1,856.25	Yes
Nevada	6.85%	$2,397.50	No
New Jersey	6.625%	$1,788.75	Yes
Arkansas	6.5%	$1,755.00	Yes
Kansas	6.5% +	$1,755.00	Yes
Maryland	6.5%	$1,755.00	Yes
Connecticut	6.35%	$1,714.50	Yes
Illinois	6.25% +	$1,687.50	Yes
Massachusetts	6.25%	$2,187.50	No
Texas	6.25%	$1,687.50	Yes
Utah	6.1%	$1,647.00	Yes
Florida	6% +	$2,100.00	No
Idaho	6%	$2,100.00	No
Kentucky	6%	$1,620.00	Yes
Michigan	6%	$2,100.00	No
Pennsylvania	6%	$1,620.00	Yes
Vermont	6%	$1,620.00	Yes
West Virginia	6%	$1,620.00	Yes
Ohio	5.75% +	$2,012.50	No
Arizona	5.6% +	$1,960.00	No
Maine	5.5%	$1,925.00	No
Nebraska	5.5% +	$1,925.00	No
Delaware	5.25%	$1,417.50	Yes
Iowa	5%	$1,750.00	No
Louisiana	5% +	$1,350.00	Yes
Mississippi	5%	$1,350.00	Yes
North Dakota	5%	$1,750.00	No
South Carolina	5%	$500.00	No
Wisconsin	5% +	$1,350.00	Yes
Oklahoma	4.5%	$1,215.00	Yes
Missouri	4.225% +	$1,140.75	Yes
Virginia	4.15%	$1,452.50	No
Hawaii	4%	$1,400.00	No
New Mexico	4%	$1,080.00	Yes
New York	4% +	$1,400.00	No
South Dakota	4%	$1,080.00	Yes
Wyoming	4% +	$1,080.00	Yes
North Carolina	3%	$810.00	Yes
Colorado	2.9% +	$783.00	Yes
Alabama	2% +	$700.00	No
Oregon	0.5%	$175.00	No
Alaska	0%	$0.00	No
Montana	0%	$0.00	No
New Hampshire	0%	$0.00	No
District of Columbia	by weight/MPG	$1,085.00	No

Frequently asked questions

Which state is cheapest to buy a car in?

For tax alone: the no-tax states (MT, NH, AK) and Oregon's 0.5% — but you pay where you REGISTER, not where you buy, so the saving is mostly theoretical unless you live there.

Why do some states call it something else?

Excise, highway use, titling and privilege taxes are purchase taxes by another name, often in place of (not on top of) the general sales tax. Each state page names its tax properly.

Sources & verification. State DMV / revenue department publications (researched 4 November 2026; each page links its official source). Floors are labelled floors — local taxes add on top. An estimator for a typical purchase; private-party valuation rules (standard presumptive value, NADA/J.D. Power) can change the base.

Car sales tax by state for 2026 from DMV and revenue sources: excise taxes, highway use taxes, Georgia’s TAVT, South Carolina’s capped fee, DC’s weight-and-MPG schedule — what a $35,000 purchase costs in every state.

UNDERSTAND YOUR RESULTS

Car Sales Tax by State — the 2026 Hub guide

The hub of the car tax family: every state’s tax on a vehicle purchase for 2026, from DMV and revenue department sources.

How to use this tool

Find your state’s tax on the test purchase.
Open the state calculator.
Enter your price and trade-in.
Read the tax, title fee and registration notes.

A worked example

Five states charge no purchase tax; Tennessee’s stack is the dearest on the test purchase.

What you can do with this tool

Each state’s actual vehicle tax by its proper name and structure — sales tax, excise, highway use tax, TAVT, IMF, privilege tax, DC’s weight-and-MPG excise.
Trade-in credit applied only where an official source verifies it — and the no-credit states (VA, CA, OR) called out explicitly.
Title fees where published; registration described from the official schedule rather than faked into one number.

How it works

Trade-in rules swing the bill by hundreds of dollars between neighbouring states.

Frequently asked questions

Which state has no car tax?

Montana, New Hampshire and Alaska levy none at state level; Oregon has only a 0.5% dealer privilege tax.

Does the trade-in always reduce tax?

No — Virginia, California and Oregon are among the states that do not credit it the usual way.