Louisiana vs Mississippi

Louisiana and Mississippi compare differently in the short vs long run: Louisiana costs $3,612 first year ($35 annual after), Mississippi costs $2,100 first year ($303 annual after).

Louisiana
$3,612
first year, $35K gas car
vs +$1,511
Mississippi
$2,100
first year, $35K gas car

Cost comparison

Louisiana Mississippi Difference
First-year total
All-in cost to register a new $35,000 gas vehicle for the first time, including sales tax, title, and registration.
$3,612 $2,100 +$1,511
Annual renewal (year 2+)
Recurring annual cost after the first year — what you actually pay every year you own the car.
$35 $303 −$268
Sales tax (one-time)
Sales/use/excise tax owed at purchase on a $35,000 vehicle, using typical local rates.
$3,500 $1,750 +$1,750
Combined sales tax rate
State rate plus typical local rate (where applicable).
10.00% 5.00% +5.00 pp
EV first-year total
Same $35K scenario but as a battery electric vehicle, capturing EV-specific surcharges.
$3,722 $2,250 +$1,471
EV annual renewal
Recurring EV-ownership cost in year 2+.
$145 $453 −$308
EV surcharge
Annual EV-specific registration fee (zero in states without one).
$110 $150 −$40

How each state structures it

Louisiana

Louisiana has a uniquely structured cost profile: minimal registration (just 0.1% of vehicle value per year — about $35/year for a $35,000 vehicle), no statewide annual ad valorem, but parish sales tax additions push combined sales tax from approximately 9% (rural parishes) to 12.95% (parts of metro New Orleans and Baton Rouge). State sales tax rose from 4.45% to 5% on January 1, 2025. Title fee is $68.50 + $8 handling. EV surcharge is $110/year (PHEV $60). A new $35,000 vehicle in a typical Louisiana parish (10% combined sales tax) runs about $3,612 in first-year costs, with annual renewals just $35.

Mississippi

Mississippi charges only 5% state sales tax on vehicles — significantly LOWER than the 7% standard retail sales tax — with NO local additions. Combined with full trade-in credit, MS has one of the lowest vehicle purchase taxes in the South. Annual ad valorem tax is assessed at 30% of MSRP × county millage (typical 80-130 mills), partially offset by a 6.5% legislative tag credit. Net effective rate is roughly 1.05% on full MSRP statewide, varying by county. Registration is $14 first time, $12.75 renewal, plus $15 privilege tax. Title fee is $9. EV surcharge is $150/year (PHEV $75). A new $35,000 vehicle in a typical Mississippi county runs about $2,113 in first-year costs (just $1,750 sales tax + $312 first-year ad valorem + small fees), with annual renewals around $340 dropping as the vehicle depreciates.

What this means for you

Frequently asked questions

Is it cheaper to register a car in Louisiana or Mississippi?

It depends on the timeframe. Louisiana costs $3,612 first year and $35 annually after. Mississippi costs $2,100 first year and $303 annually after. One state may be cheaper upfront and the other cheaper long-term.

What is the sales tax difference between Louisiana and Mississippi?

Louisiana charges 10.00% combined sales tax on vehicles; Mississippi charges 5.00%. On a $35,000 purchase that's $3,500 in Louisiana vs $1,750 in Mississippi.

Do Louisiana and Mississippi both charge EV registration fees?

Louisiana: $110/year EV surcharge. Mississippi: $150/year EV surcharge. EV fees are added on top of standard registration costs.

Official sources: Louisiana OMVMississippi Department of Revenue (Motor Vehicle)

Data last updated: 2026-05-23