North Dakota vs South Dakota
Registering a new $35,000 vehicle costs about $1,494 in South Dakota versus $1,843 in North Dakota — a $349 first-year advantage for South Dakota.
Cost comparison
| North Dakota | South Dakota | 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. | $1,843 | $1,494 | +$349 |
| Annual renewal (year 2+) Recurring annual cost after the first year — what you actually pay every year you own the car. | $76 | $76 | matches |
| Sales tax (one-time) Sales/use/excise tax owed at purchase on a $35,000 vehicle, using typical local rates. | $1,750 | $1,400 | +$350 |
| Combined sales tax rate State rate plus typical local rate (where applicable). | 5.00% | 4.00% | +1.00 pp |
| EV first-year total Same $35K scenario but as a battery electric vehicle, capturing EV-specific surcharges. | $1,963 | $1,544 | +$419 |
| EV annual renewal Recurring EV-ownership cost in year 2+. | $196 | $126 | +$70 |
| EV surcharge Annual EV-specific registration fee (zero in states without one). | $120 | $50 | +$70 |
How each state structures it
North Dakota
North Dakota has one of the simpler vehicle tax structures: 5% Motor Vehicle Excise Tax replaces sales tax (no local additions, full trade-in credit), weight-based annual registration around $76 for typical passenger vehicles, and just $5 for the title fee. No annual ad valorem on vehicles. No state-mandated emissions testing or inspections. EV surcharge is $120/year (PHEV $50). A new $35,000 vehicle in North Dakota runs about $1,843 in first-year costs (mostly the $1,750 MVET + $76 registration + small fees), with annual renewals around $76.
South Dakota
South Dakota has one of the lower vehicle tax burdens in the US: a 4% Motor Vehicle Excise Tax replaces sales tax (no local additions), full trade-in credit, no annual ad valorem, no state income tax, and no required inspections or emissions testing. Registration is weight + age tiered ($72/year for typical passenger; 30% discount for vehicles 10+ years old). Title fee is just $10. County wheel tax can add up to $60/vehicle in participating counties. EV surcharge is $50/year (low by US standards). A new $35,000 vehicle in South Dakota runs about $1,503 in first-year costs (mostly the $1,400 excise tax + $76 registration + small fees), with annual renewals around $76.
What this means for you
- Buying a new car: South Dakota is roughly $349 cheaper than North Dakota in the first year on a $35K vehicle, driven mostly by sales tax and one-time fees.
- Annual renewal: Recurring annual costs are very close (identical) between the two states.
- If you drive an EV: South Dakota's EV surcharge ($50/year) is meaningfully lower than North Dakota's ($120/year) — a 58% savings on the EV fee alone.
- Structural differences: Neither state imposes an annual ad valorem vehicle property tax, so renewal costs stay relatively flat after the first year for both.
Frequently asked questions
Is it cheaper to register a car in North Dakota or South Dakota?
South Dakota is cheaper to register a new $35,000 vehicle: $1,494 first year vs $1,843 in North Dakota, and the gap continues into annual renewals.
What is the sales tax difference between North Dakota and South Dakota?
North Dakota charges 5.00% combined sales tax on vehicles; South Dakota charges 4.00%. On a $35,000 purchase that's $1,750 in North Dakota vs $1,400 in South Dakota.
Do North Dakota and South Dakota both charge EV registration fees?
North Dakota: $120/year EV surcharge. South Dakota: $50/year EV surcharge. EV fees are added on top of standard registration costs.
Official sources: North Dakota DOT Motor Vehicle Division • South Dakota DOR Motor Vehicle Division
Data last updated: 2026-05-23