The DMV Almanac

Top Lists · Cheapest states (first year)

Top 10

The 10 Cheapest States to Register a Car

These ten US states have the lowest total first-year cost for a new $35,000 vehicle. The pattern is striking: every state on this list either has no sales tax on vehicles or has a very low one, sometimes paired with minimal DMV fees.

  1. 1

    Alaska

    First-year total: $216

    No sales tax on vehicles

  2. 2

    Oregon

    First-year total: $391

    0.50% combined sales tax, $110/yr renewal

  3. 3

    Montana

    First-year total: $412

    No sales tax on vehicles

  4. 4

    New Hampshire

    First-year total: $694

    No sales tax on vehicles

  5. 5

    South Carolina

    First-year total: $986

    5.00% combined sales tax, $414/yr renewal

  6. 6

    North Carolina

    First-year total: $1,371

    3.00% combined sales tax, $230/yr renewal

  7. 7

    New Mexico

    First-year total: $1,452

    4.00% combined sales tax, $45/yr renewal

  8. 8

    South Dakota

    First-year total: $1,494

    4.00% combined sales tax, $76/yr renewal

  9. 9

    North Dakota

    First-year total: $1,843

    5.00% combined sales tax, $76/yr renewal

  10. 10

    Delaware

    First-year total: $1,938

    5.25% combined sales tax, $65/yr renewal

What this means

The no-sales-tax states dominate this list — Alaska, Montana, New Hampshire, and Oregon all give you a $0 tax bill on your $35K car purchase, saving you $2,000+ vs typical states immediately. Be aware though: low first-year cost doesn't always mean low long-term cost. Some states with no sales tax (Oregon, for instance) compensate with higher annual registration fees. Check the renewal cost list for the long-term picture.

Related lists

All 5 states
No sales tax on cars
Only five US states charge no state sales tax on vehicle purchases.
Top 10
Most expensive states (first year)
These are the ten US states where registering a new $35,000 vehicle costs the most in the first year, combining sales tax, title fees, registration, and any annual surcharges.
Top 10
Cheapest renewal
For owners holding a car long-term, what matters isn't the upfront sales-tax-and-title hit — it's the bill that arrives every single year.

Frequently asked questions

Which state is the absolute cheapest to register a car?

By total first-year cost on a typical $35,000 new vehicle, the cheapest state for car registration is Alaska — driven by zero state sales tax on vehicles and modest DMV fees. New Hampshire, Montana, and Oregon also rank near the bottom due to having no state sales tax on car purchases.

Can I save money by registering my car in a no-sales-tax state?

You must register your car in your state of legal residence, not wherever the cheapest fee is. States have strict laws against out-of-state registration to evade tax, with significant fines. That said, if you're considering a move, the registration-cost delta is real money — often $2,000+ saved on the purchase alone.

Does this include all fees?

Yes — sales tax, title, registration, plate fees, any EV surcharges, and any first-year-only fees specific to the state are all included. What's NOT included is your local municipality's annual personal property tax on vehicles (where applicable), which is collected separately by counties and towns. We do account for these in the annual-renewal calculations on each state's individual page.

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