Nebraska vs South Dakota
Registering a new $35,000 vehicle costs about $1,494 in South Dakota versus $2,904 in Nebraska — a $1,411 first-year advantage for South Dakota.
Cost comparison
| Nebraska | 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. | $2,904 | $1,494 | +$1,411 |
| Annual renewal (year 2+) Recurring annual cost after the first year — what you actually pay every year you own the car. | $440 | $76 | +$364 |
| Sales tax (one-time) Sales/use/excise tax owed at purchase on a $35,000 vehicle, using typical local rates. | $2,450 | $1,400 | +$1,050 |
| Combined sales tax rate State rate plus typical local rate (where applicable). | 7.00% | 4.00% | +3.00 pp |
| EV first-year total Same $35K scenario but as a battery electric vehicle, capturing EV-specific surcharges. | $3,054 | $1,544 | +$1,511 |
| EV annual renewal Recurring EV-ownership cost in year 2+. | $590 | $126 | +$464 |
| EV surcharge Annual EV-specific registration fee (zero in states without one). | $150 | $50 | +$100 |
How each state structures it
Nebraska
Nebraska's annual Motor Vehicle Tax is based on the vehicle's original MSRP with a depreciating schedule: 100% of base tax for years 1-5, dropping to 70% (years 6-10), 35% (years 11-13), and ZERO from year 14 onward. For a typical $35,000 vehicle, the year 1 tax is approximately $420, dropping to $294 in years 6-10, $147 in years 11-13, and nothing after year 13. Sales tax is 5.5% state + local (combined typical 7%), with full trade-in credit. Annual registration administrative fees are minimal at ~$20/year. Title fee is $10. EV surcharge is $150/year (PHEV $75). A new $35,000 vehicle in a typical Nebraska county runs about $2,924 in first-year costs, with annual renewals around $440 in years 1-5.
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 $1,411 cheaper than Nebraska in the first year on a $35K vehicle, driven mostly by sales tax and one-time fees.
- Annual renewal: South Dakota is cheaper to renew annually by about $364/year. Over a 5-year ownership period that's roughly $1,820 in renewal-fee savings alone.
- If you drive an EV: South Dakota's EV surcharge ($50/year) is meaningfully lower than Nebraska's ($150/year) — a 67% 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 Nebraska or South Dakota?
South Dakota is cheaper to register a new $35,000 vehicle: $1,494 first year vs $2,904 in Nebraska, and the gap continues into annual renewals.
What is the sales tax difference between Nebraska and South Dakota?
Nebraska charges 7.00% combined sales tax on vehicles; South Dakota charges 4.00%. On a $35,000 purchase that's $2,450 in Nebraska vs $1,400 in South Dakota.
Do Nebraska and South Dakota both charge EV registration fees?
Nebraska: $150/year EV surcharge. South Dakota: $50/year EV surcharge. EV fees are added on top of standard registration costs.
Official sources: Nebraska DMV • South Dakota DOR Motor Vehicle Division
Data last updated: 2026-05-23