New Hampshire vs Vermont
New Hampshire and Vermont compare differently in the short vs long run: New Hampshire costs $694 first year ($556 annual after), Vermont costs $2,226 first year ($76 annual after).
Cost comparison
| New Hampshire | Vermont | 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. | $694 | $2,226 | −$1,532 |
| Annual renewal (year 2+) Recurring annual cost after the first year — what you actually pay every year you own the car. | $556 | $76 | +$480 |
| Sales tax (one-time) Sales/use/excise tax owed at purchase on a $35,000 vehicle, using typical local rates. | $0 | $2,100 | −$2,100 |
| Combined sales tax rate State rate plus typical local rate (where applicable). | 0.00% | 6.00% | −6.00 pp |
| EV first-year total Same $35K scenario but as a battery electric vehicle, capturing EV-specific surcharges. | $794 | $2,315 | −$1,521 |
| EV annual renewal Recurring EV-ownership cost in year 2+. | $656 | $165 | +$491 |
| EV surcharge Annual EV-specific registration fee (zero in states without one). | $100 | $89 | +$11 |
How each state structures it
New Hampshire
New Hampshire has NO sales tax — one of only five US states without one. However, NH charges a substantial annual MUNICIPAL PERMIT FEE based on MSRP × age rate: $18/$1,000 in year 1, dropping to $15, $12, $9, $6, then $3 per $1,000 by year 6+. For a $35,000 new vehicle, year 1 municipal permit fee is $630, declining to $105 by year 6+. This is functionally a personal property tax assessed at every town clerk's office. Combined with the $31 state registration and small fees, total year 1 cost on a new $35K vehicle is around $727 — NO sales tax savings (~$2,100+ compared to a 6% sales tax state). Annual renewals around $661 in year 1 dropping to $136 by year 6+. EV surcharge $100/year (effective Jan 2026).
Vermont
Vermont has a 6% Purchase and Use Tax on vehicles (replaces sales tax), applied to the higher of purchase price or J.D. Power clean trade-in value with full trade-in credit and NO local additions. Annual registration is $76 flat for passenger vehicles. Title fee is $42 + $8 warranty fee on new vehicles. EV infrastructure fee took effect January 1, 2025 at $89/year (PHEV $44.50). No annual ad valorem. Per Act No. 165 of 2024, all vehicles sold to new owners receive a Vermont title at registration (previous model-year exemptions removed). A new $35,000 vehicle in Vermont runs about $2,226 in first-year costs ($2,100 P&U tax + $76 registration + $50 title/warranty), with annual renewals around $76.
What this means for you
- Buying a new car: New Hampshire is roughly $1,532 cheaper than Vermont in the first year on a $35K vehicle, driven mostly by sales tax and one-time fees.
- Annual renewal: Vermont is cheaper to renew annually by about $480/year. Over a 5-year ownership period that's roughly $2,400 in renewal-fee savings alone.
- If you drive an EV: Both states charge similar EV surcharges (New Hampshire: $100/year, Vermont: $89/year), so EV ownership cost between the two is comparable.
- Structural differences: New Hampshire charges an annual ad valorem property tax on vehicles (renewals stay expensive as long as you own the car), while Vermont does not — over a 10-year hold this can swing thousands of dollars toward Vermont.
Frequently asked questions
Is it cheaper to register a car in New Hampshire or Vermont?
It depends on the timeframe. New Hampshire costs $694 first year and $556 annually after. Vermont costs $2,226 first year and $76 annually after. One state may be cheaper upfront and the other cheaper long-term.
What is the sales tax difference between New Hampshire and Vermont?
New Hampshire charges 0.00% combined sales tax on vehicles; Vermont charges 6.00%. On a $35,000 purchase that's $0 in New Hampshire vs $2,100 in Vermont.
Do New Hampshire and Vermont both charge EV registration fees?
New Hampshire: $100/year EV surcharge. Vermont: $89/year EV surcharge. EV fees are added on top of standard registration costs.
Official sources: New Hampshire DMV • Vermont DMV
Data last updated: 2026-05-23