North Carolina vs South Carolina

North Carolina and South Carolina compare differently in the short vs long run: North Carolina costs $1,371 first year ($230 annual after), South Carolina costs $986 first year ($414 annual after).

North Carolina
$1,371
first year, $35K gas car
vs +$385
South Carolina
$986
first year, $35K gas car

Cost comparison

North Carolina South Carolina 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.
$1,371 $986 +$385
Annual renewal (year 2+)
Recurring annual cost after the first year — what you actually pay every year you own the car.
$230 $414 −$184
Sales tax (one-time)
Sales/use/excise tax owed at purchase on a $35,000 vehicle, using typical local rates.
$1,050 $500 +$550
Combined sales tax rate
State rate plus typical local rate (where applicable).
3.00% 5.00% −2.00 pp
EV first-year total
Same $35K scenario but as a battery electric vehicle, capturing EV-specific surcharges.
$1,586 $1,046 +$540
EV annual renewal
Recurring EV-ownership cost in year 2+.
$445 $474 −$29
EV surcharge
Annual EV-specific registration fee (zero in states without one).
$215 $60 +$155

How each state structures it

North Carolina

North Carolina has a distinctive two-track vehicle tax system: (1) the Highway Use Tax (HUT) of 3% of purchase price replaces sales tax at title — meaningfully cheaper than the state's 6.75-7.5% general sales tax rate on goods, and (2) an annual vehicle property tax assessed by counties at a statewide average of ~0.70%, billed alongside registration renewal under the "Tag & Tax Together" system. The annual property tax means NC vehicles cost more to OWN long-term than most states, even though purchase tax is lower. New residents transferring vehicles from out of state get a major break — HUT is capped at $250 regardless of vehicle value. A new $35,000 vehicle runs about $1,500-1,600 first-year (HUT + property tax + fees), with annual renewals around $300-350 depending on county property tax rate.

South Carolina

South Carolina has one of the most distinctive vehicle tax structures in the US: traditional sales tax was replaced in July 2017 by the Infrastructure Maintenance Fee (IMF), which is 5% of purchase price BUT capped at $500. For any vehicle over $10,000, the IMF is exactly $500 — making SC one of the cheapest large states for buying expensive vehicles. New residents pay a flat $250 IMF on out-of-state transfers. Beyond the IMF, vehicles face an annual property tax collected by counties (6% assessment ratio × local millage rate, roughly 1.5% effective), which must be paid BEFORE SCDMV will renew registration. A new $35,000 vehicle in a typical SC county runs about $985 in first-year costs (driven by the $500 IMF + $446 first-year property tax), with annual renewals around $466 dropping as the vehicle depreciates.

What this means for you

Frequently asked questions

Is it cheaper to register a car in North Carolina or South Carolina?

It depends on the timeframe. North Carolina costs $1,371 first year and $230 annually after. South Carolina costs $986 first year and $414 annually after. One state may be cheaper upfront and the other cheaper long-term.

What is the sales tax difference between North Carolina and South Carolina?

North Carolina charges 3.00% combined sales tax on vehicles; South Carolina charges 5.00%. On a $35,000 purchase that's $1,050 in North Carolina vs $500 in South Carolina.

Do North Carolina and South Carolina both charge EV registration fees?

North Carolina: $215/year EV surcharge. South Carolina: $60/year EV surcharge. EV fees are added on top of standard registration costs.

Official sources: NCDMVSCDMV

Data last updated: 2026-05-23