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 Tax 2% Alaska AK Tax 0% Arizona AZ Tax 5.6% Arkansas AR Tax 6.5% California CA Tax 7.25% Colorado CO Tax 2.9% Connecticut CT Tax 6.35% Delaware DE Tax 0% Florida FL Tax 6% Georgia GA Tax 4% Hawaii HI Tax 4% Idaho ID Tax 6% Illinois IL Tax 6.25% Indiana IN Tax 7% Iowa IA Tax 6% Kansas KS Tax 6.5% Kentucky KY Tax 6% Louisiana LA Tax 4.45% Maine ME Tax 5.5% Maryland MD Tax 6% Massachusetts MA Tax 6.25% Michigan MI Tax 6% Minnesota MN Tax 6.875% Mississippi MS Tax 5% Missouri MO Tax 4.225% Montana MT Tax 0% Nebraska NE Tax 5.5% Nevada NV Tax 6.85% New Hampshire NH Tax 0% New Jersey NJ Tax 6.625% New Mexico NM Tax 4% New York NY Tax 4% North Carolina NC Tax 3% North Dakota ND Tax 5% Ohio OH Tax 5.75% Oklahoma OK Tax 3.25% Oregon OR Tax 0% Pennsylvania PA Tax 6% Rhode Island RI Tax 7% South Carolina SC Tax 5% South Dakota SD Tax 4% Tennessee TN Tax 7% Texas TX Tax 6.25% Utah UT Tax 4.85% Vermont VT Tax 6% Virginia VA Tax 4.15% Washington WA Tax 6.5% West Virginia WV Tax 6% Wisconsin WI Tax 5% Wyoming WY Tax 4%

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State Car Buying FAQ

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.

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.

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.

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.

State Car Loan & Sales Tax Guides (2026)

Not Sure Which State? Use Our Universal Calculator

State Car Buying FAQ

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