State Car Loan & Sales Tax Guides (2026)

Q: Which state has the lowest car sales tax?

Alaska, Delaware, Montana, New Hampshire, and Oregon have no state-level sales tax on car purchases.

Q: Which state has the highest car sales tax?

California, Tennessee, and several other states have combined sales tax rates exceeding 9%.

Find sales tax rates, auto loan averages, EV incentives, and free calculators for all 50 U.S. states.

Alabama AL Sales Tax: 2% Alaska AK Sales Tax: 0% Arizona AZ Sales Tax: 5.6% Arkansas AR Sales Tax: 6.5% California CA Sales Tax: 7.25% Colorado CO Sales Tax: 2.9% Connecticut CT Sales Tax: 6.35% Delaware DE Sales Tax: 0% Florida FL Sales Tax: 6% Georgia GA Sales Tax: 4% Hawaii HI Sales Tax: 4% Idaho ID Sales Tax: 6% Illinois IL Sales Tax: 6.25% Indiana IN Sales Tax: 7% Iowa IA Sales Tax: 5% Kansas KS Sales Tax: 6.5% Kentucky KY Sales Tax: 6% Louisiana LA Sales Tax: 4.45% Maine ME Sales Tax: 5.5% Maryland MD Sales Tax: 6% Massachusetts MA Sales Tax: 6.25% Michigan MI Sales Tax: 6% Minnesota MN Sales Tax: 6.875% Mississippi MS Sales Tax: 7% Missouri MO Sales Tax: 4.225% Montana MT Sales Tax: 0% Nebraska NE Sales Tax: 5.5% Nevada NV Sales Tax: 6.85% New Hampshire NH Sales Tax: 0% New Jersey NJ Sales Tax: 6.625% New Mexico NM Sales Tax: 5.125% New York NY Sales Tax: 4% North Carolina NC Sales Tax: 4.75% North Dakota ND Sales Tax: 5% Ohio OH Sales Tax: 5.75% Oklahoma OK Sales Tax: 4.5% Oregon OR Sales Tax: 0% Pennsylvania PA Sales Tax: 6% Rhode Island RI Sales Tax: 7% South Carolina SC Sales Tax: 6% South Dakota SD Sales Tax: 4.2% Tennessee TN Sales Tax: 7% Texas TX Sales Tax: 6.25% Utah UT Sales Tax: 6.1% Vermont VT Sales Tax: 6% Virginia VA Sales Tax: 5.3% Washington WA Sales Tax: 6.5% West Virginia WV Sales Tax: 6% Wisconsin WI Sales Tax: 5% Wyoming WY Sales Tax: 4%

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State Car Buying FAQ

Which state has the lowest car sales tax?

Alaska, Delaware, Montana, New Hampshire, and Oregon have no state-level sales tax on car purchases. However, some may charge other fees or local taxes. Always check with your dealer for the final out-the-door price.

Which state has the highest car sales tax?

California, Tennessee, and several other states have combined sales tax rates exceeding 9% when including local jurisdictions. In California, the total can reach 10.25% in some areas — the highest in the nation for car purchases.

Do I pay sales tax based on where I live or where I buy the car?

In most states, you pay sales tax based on where the car will be registered (your home address), not where the dealership is located. This means buying in a low-tax state and registering in a high-tax state won't save you money on sales tax.

How do I find my state's EV rebate program?

Each state guide above includes current EV incentives. Additionally, the federal government offers up to $7,500 in tax credits for qualifying electric vehicles. Check your state's official energy or environmental agency website for the latest programs.