When you set out to buy a car, you may think only of initial costs, like the down payment, your next month’s car payment and interest the loan might accrue. But you might be surprised to know how much it costs to own a car for just one year. And those costs vary from state to state.
To determine the costs of owning a car for a year in every state, GOBankingRates surveyed and totaled the cost of buying and owning a car for one year in all 50 states. This total included car sales tax, average annual car insurance premiums, average annual gas expenses and average car maintenance and repair costs.
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These expenses were added to the cost to finance a new vehicle — based on $48,427 MSRP, 20% down payment of $9,649, an average credit score of 716, an interest rate of 6.88% and a loan length of 60 months, which equals $762 per month or $9,144 per year.
So, take a look and see whether your home state has a driving economy that’s making it that much harder to make ends meet or one that allows you to look forward to affordable auto ownership for decades to come.
Alabama
- Total costs for one year of ownership: $24,190
- Annual gas: $1,983
- Average insurance: $1,860
Despite costs being lower in Alabama than other states, the average cost of car repairs here runs on the higher side at around $399 per year. However, gas averages around a reasonable $2.79 per gallon.
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Alaska
- Total costs for one year of ownership: $23,518
- Annual gas: $2,482
- Average insurance: $1,676
You won’t pay any sales tax on the purchase of your new car in Alaska, which helps lower total costs, but gas is pricier here, at around $3.41 per gallon.
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Arizona
- Total costs for one year of ownership: $26,201
- Annual gas: $2,298
- Average insurance: $1,812
The relatively high sales tax in Arizona — 5.6% — translates to around $2,729 in tax on a new car, which is more than you pay in annual gas.
Arkansas
- Total costs for one year of ownership: $26,379
- Annual gas: $1,899
- Average insurance: $1,957
In Arkansas, you’ll pay only around $2.61 per gallon in gas and around $383 in repair fees. However, the higher sales tax of 6.5% translates to a whopping nearly $3,167 in tax on your car.
California
- Total costs for one year of ownership: $28,504
- Annual gas: $3,167
- Average insurance: $2,416
California is known for having a significantly higher cost of living than most other states, and it’s no exception when it comes to buying a car. In fact, your total costs for one year of ownership here are the highest of all the states. With a sales tax of 7.25% and gas running around $4.35 per gallon, it’s no surprise.
Colorado
- Total costs for one year of ownership: $25,239
- Annual gas: $2,099
- Average insurance: $2,337
Colorado is on the lower side for sales tax at 2.90%, and gas per gallon, $2.88, but car repair costs are on the higher side here, around $417 per year, which is higher than even California by a few bucks.
Connecticut
- Total costs for one year of ownership: $26,428
- Annual gas: $2,218
- Average insurance: $1,725
This New England state is one of the priciest to own a new car, with a steep sales tax, at 6.35%, which adds around $3,094 per year to your costs.
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Delaware
- Total costs for one year of ownership: $23,504
- Annual gas: $2,077
- Average insurance: $2,063
It doesn’t get cheaper than no sales tax, which helps lower the overall costs you pay for owning a car in Delaware, which is on the lower end of this list.
Florida
- Total costs for one year of ownership: $27,235
- Annual gas: $2,248
- Average insurance: $2,694
Not only are you paying a high sales tax of 6% in Florida, or around $2,923 in total sales tax, but average insurance premiums are the highest here.
Georgia
- Total costs for one year of ownership: $26,691
- Annual gas: $2,124
- Average insurance: $1,970
The state of Georgia, which typically runs lower on cost of living, is not so cheap when it comes to buying a car. Its state sales tax of 6.6% results in a steep $3,216 or so in tax on the car, and car repairs average around $408 per year.
Hawaii
- Total costs for one year of ownership: $26,139
- Annual gas: $3,319
- Average insurance: $1,517
Given that Hawaii is typically the most expensive state in the U.S., it’s surprising that it doesn’t take the top spot on this list for buying a car. Its 4% state sales tax will add up to about $1,949 on a new car. It’s the price of gas that really takes a bite, at $4.56 per gallon, totaling more than $3,319 per year.
Idaho
- Total costs for one year of ownership: $25,910
- Annual gas: $2,196
- Average insurance: $1,428
The 6% state sales tax will add a sizable $2,923 to the cost of owning a car in Idaho. And the $3.02 per gallon will run you around $2,200 per year.
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Illinois
- Total costs for one year of ownership: $26,755
- Annual gas: $2,338
- Average insurance: $1,532
You can expect to pay around $379 on average per year in car repairs in Illinois, but annual gas will run you nearly $2,338 per year.
Indiana
- Total costs for one year of ownership: $26,430
- Annual gas: $2,167
- Average insurance: $1,515
Indiana is another of the states with a strikingly high sales tax — 7% — which adds another nearly $3,411 to your overall car costs. Gas, though, is on the lower side here, at $2.98 per gallon.
Iowa
- Total costs for one year of ownership: $25,366
- Annual gas: $1,967
- Average insurance: $1,630
Even though you will spend over $25,000 in costs your first year, the cost of gas is only $2.70 per gallon in Iowa.
Kansas
- Total costs for one year of ownership: $26,840
- Annual gas: $1,939
- Average insurance: $1,900
Sales tax is painfully high in Kansas, too, adding up to around $3,654 in costs on your new car. However, gas is only around $2.66 per gallon.
Kentucky
- Total costs for one year of ownership: $26,500
- Annual gas: $1,991
- Average insurance: $2,228
Kentucky’s average car insurance premium is on the higher side, and the average cost of repairs is creeping up there, too, at around $385 per year.
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Louisiana
- Total costs for one year of ownership: $26,375
- Annual gas: $1,962
- Average insurance: $2,883
Compared to some of these states, Louisiana’s 4.45% sales tax isn’t that high. However, its average car insurance premium of $2,168 is the second highest after Florida.
Maine
- Total costs for one year of ownership: $25,401
- Annual gas: $2,224
- Average insurance: $1,175
Maine has one of the lower average car insurance premiums in the U.S. The price of gas, at around $3.06 per gallon, is right in the middle, but the state’s annual car repair cost is on the lower side, at around $349.
Maryland
- Total costs for one year of ownership: $26,203
- Annual gas: $2,161
- Average insurance: $1,746
Prices run higher on the East Coast, and Maryland is no exception. Here, you’ll pay over $2,900 in sales tax on your new car in your first year and almost $400 in car repairs.
Massachusetts
- Total costs for one year of ownership: $26,340
- Annual gas: $2,209
- Average insurance: $1,726
You’ll feel the pinch of higher costs on owning a new car in Massachusetts, with around $3,045 in sales tax, almost $2,500 in gas costs and nearly $390 in car repair costs.
Michigan
- Total costs for one year of ownership: $26,786
- Annual gas: $2,182
- Average insurance: $2,352
While the price of gas in Michigan is relatively lower than many states, at $3.00 per gallon, average car insurance premiums are on the high side.
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Minnesota
- Total costs for one year of ownership: $26,484
- Annual gas: $2,056
- Average insurance: $1,911
Sales tax is also high in Minnesota, adding around $3,167 to your total car costs, which are already on the higher side than many states.
Mississippi
- Total costs for one year of ownership: $25,702
- Annual gas: $1,891
- Average insurance: $2,008
You’ll pay close to $400 in car repair costs in Mississippi and nearly $1,900 in gas costs in one year of car ownership.
Missouri
- Total costs for one year of ownership: $25,340
- Annual gas: $1,945
- Average insurance: $1,982
In Missouri, you pay a lower cost of gas, at $2.67 per gallon — or $1,945 per year.
Montana
- Total costs for one year of ownership: $23,624
- Annual gas: $2,068
- Average insurance: $2,193
Car costs are slightly cheaper in Montana, due in part to the lack of state sales tax. However, car insurance premiums are among the highest.
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Nebraska
- Total costs for one year of ownership: $25,927
- Annual gas: $1,998
- Average insurance: $1,902
Nebraska will get you with both high insurance premiums and a higher state sales tax of 5.5%. Average insurance premiums are around $1,900.
Nevada
- Total costs for one year of ownership: $27,357
- Annual gas: $1,906
- Average insurance: $2,060
The Nevada sales tax is the highest on the list, at 8.25%, which adds $4,019 to the cost of your car. But gas is just $2.62 per gallon.
New Hampshire
- Total costs for one year of ownership: $22,760
- Annual gas: $2,151
- Average insurance: $1,265
Unlike its New England sister states, New Hampshire is the cheapest state on the list to own a car for a year. Average insurance premiums are on the lower side here, and there’s no state sales tax, so even the $2.96 price for a gallon of gas doesn’t add up to nearly as much in total costs.
New Jersey
- Total costs for one year of ownership: $26,642
- Annual gas: $2,137
- Average insurance: $1,902
Another East Coast state where you’re going to pay more is New Jersey, with a state sales tax of 6.63%, tacking on over $3,200 to your car costs. Insurance premiums and car repairs are also on the higher side here.
New Mexico
- Total costs for one year of ownership: $25,374
- Annual gas: $2,011
- Average insurance: $2,049
The average cost of gas in New Mexico isn’t bad, at $2.76 per gallon. However, the sales tax of 4% adds almost $1,950 to your total costs, and car repairs average almost $400 per year here.
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New York
- Total costs for one year of ownership: $25,471
- Annual gas: $2,292
- Average insurance: $1,870
In a state like New York, with such excellent public transportation, the cost of car ownership is pretty high. Sales tax is around $1,950 per year.
North Carolina
- Total costs for one year of ownership: $24,651
- Annual gas: $2,073
- Average insurance: $1,741
North Carolina imposes only a 3% state sales tax, or around $1,500 in added cost. The insurance premium is on the lower side, but car repairs are a bit over $400 per year.
North Dakota
- Total costs for one year of ownership: $25,504
- Annual gas: $2,065
- Average insurance: $1,665
North Dakota’s 5% sales tax adds about $2,400 to the costs of car ownership. The average insurance premium is in the middle range, and car repair costs are on the lower side compared to other states, at around $365 per year.
Ohio
- Total costs for one year of ownership: $25,665
- Annual gas: $2,120
- Average insurance: $1,417
Gas is on the cheaper side in Ohio, at $2.91 per gallon, running just over $2,100 per year. Average insurance is one of the lowest on the list, and car repair costs are on the less expensive side, too, at about $350 per year.
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Oklahoma
- Total costs for one year of ownership: $24,914
- Annual gas: $1,840
- Average insurance: $2,138
While the state sales tax is low in Oklahoma, at 3.25%, the average insurance premium is on the higher side. Annual car repairs are nearly $380.
Oregon
- Total costs for one year of ownership: $23,583
- Annual gas: $2,539
- Average insurance: $1,678
Even with one of the higher average annual costs for gasoline on this list, around $2,500, Oregon’s overall costs of ownership are lower, due to no state sales tax and a lower average insurance premium.
Pennsylvania
- Total costs for one year of ownership: $26,527
- Annual gas: $2,374
- Average insurance: $1,872
The state sales tax of 6% adds $2,923 to your total car costs annually. Annual gas is also on the steeper side, with gas running around $3.26 per gallon.
Rhode Island
- Total costs for one year of ownership: $26,982
- Annual gas: $2,151
- Average insurance: $2,061
In keeping with other East Coast and northeastern states, Rhode Island’s costs are pricey compared to many other states. Average insurance is over $2,000. The state’s high sales tax of 7% adds $3,411 alone in tax costs.
South Carolina
- Total costs for one year of ownership: $25,802
- Annual gas: $1,988
- Average insurance: $2,009
South Carolina’s costs are also on the higher side on this list. With one of the higher average insurance costs, and another $2,436 chunk from sales tax, one of the few cost savings here is the lower price of gas, around $2.73 per gallon.
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South Dakota
- Total costs for one year of ownership: $25,631
- Annual gas: $2,052
- Average insurance: $2,280
The average insurance premium in South Dakota is on the higher side, at nearly $2,300. Sales tax is lower than average though, at around $1,950.
Tennessee
- Total costs for one year of ownership: $26,392
- Annual gas: $1,933
- Average insurance: $1,677
Tennessee’s 7% sales tax adds around $3,411 in additional costs. At $2.66 per gallon, gas is among the cheapest in the country.
Texas
- Total costs for one year of ownership: $26,343
- Annual gas: $1,885
- Average insurance: $2,043
In Texas, you may only pay $2.59 per gallon in gas, but you’ll pay on the high end for average insurance. Additionally, the 6.25% sales tax tacks on around $3,045 to your car ownership costs.
Utah
- Total costs for one year of ownership: $26,717
- Annual gas: $2,180
- Average insurance: $1,825
You’ll be paying a sizable chunk in sales tax — around $3,340 — and over $1,800 on average for insurance in Utah. Average annual car repairs are also on the high side, at a bit over $400.
Vermont
- Total costs for one year of ownership: $25,859
- Annual gas: $2,269
- Average insurance: $1,319
The 6% sales tax adds another sizable chunk — $2,923. But insurance in Vermont is the third cheapest in the country on average.
Virginia
- Total costs for one year of ownership: $24,970
- Annual gas: $2,105
- Average insurance: $1,469
Though Virginia is among the states on the lower end of total overall costs, you will spend over $2,000 per year on gas. Average insurance premiums are on the lower side, but annual repairs are over a tad bit over $400.
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Washington
- Total costs for one year of ownership: $27,016
- Annual gas: $2,876
- Average insurance: $1,608
Washington state is another one where you’ll feel the sting of a higher sales tax. The 6.5% adds around $3,167 to your overall car costs.
West Virginia
- Total costs for one year of ownership: $26,412
- Annual gas: $2,127
- Average insurance: $2,005
Gas in West Virginia is under $3 per gallon. With a high average insurance premium, West Virginia is definitely not the cheapest state to own a car.
Wisconsin
- Total costs for one year of ownership: $25,426
- Annual gas: $1,992
- Average insurance: $1,664
While Wisconsin is on the lower end for average annual car repair costs, at around $361, you will pay more than $2,400 in sales tax.
Wyoming
- Total costs for one year of ownership: $26,197
- Annual gas: $2,145
- Average insurance: $1,758
Wyoming lands smack in the middle of the list. The 6% state sales tax means around $2,900 in added costs.
Methodology: To generate these rankings, GOBankingRates surveyed and totaled the cost of buying and owning a car for one year in all 50 states. This total included four key car expenses: (1) Car sales tax, based on rates provided by PolicyGenius; taxes were based on the average car transaction amount of $48,427 in November 2023 as reported by Kelley Blue Book; (2) average annual car insurance premiums, sourced from CarInsurance.com’s 2023 report; (3) average annual gas expenses, based on an average of historical regular gas prices in each state sourced from AAA’s Fuel Gauge Report on Dec. 11, 2023; the expense was calculated based on the assumption of a driver filling up a 14-gallon tank once a week; (4) average annual car maintenance and repair costs, sourced from CarMD’s 2022 State Repair Cost Rankings. These expenses were combined with the cost to finance a new vehicle — based on $48,427 MSRP, 20% down payment of $9,649, an average credit score of 716 as sourced from Experian, an interest rate of 6.88% as sourced from Experian, a loan length of 60 months, which equals to $762 per month or $9,144 per year — to determine the cost to own a car for a year. GOBankingRates also attempted to calculate for title and registration fees, but with such varying degrees between states’ car excise and personal property tax laws, as well as rules for weight of vehicles, age of vehicles and cost of vehicles, GOBankingRates decided to not to include these fees in its final ranking. All data is up to date as of Dec. 11, 2024.
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This article originally appeared on GOBankingRates.com: The Annual Cost of Owning a Car in Every State
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