Top 10
The 10 States with the Lowest Sales Tax on Cars
These ten states have the lowest combined sales tax on vehicle purchases, including five states that charge no sales tax at all. For someone buying a $35,000 car, picking the right state could save $2,500+ in tax alone.
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
What this means
Five states charge no sales tax on vehicle purchases at all: Alaska, Delaware, Montana, New Hampshire, and Oregon. The next tier (1–5%) includes states with either low state rates or special vehicle-specific rules. Note that Delaware compensates with a 5.25% "document fee" that functions like sales tax, and Oregon has a 0.5% Vehicle Privilege Tax on dealer purchases — so "no sales tax" isn't always "no fee."
Frequently asked questions
Which states charge no sales tax on cars?
Five states: Alaska, Delaware, Montana, New Hampshire, and Oregon. Note that Delaware levies a 5.25% "document fee" on vehicle purchases that effectively replaces sales tax, and Oregon has a 0.5% vehicle privilege tax on dealer sales — so the actual savings vary.
Can I buy in a low-tax state and register in mine?
No — sales tax is owed in the state where you register the vehicle, not where you buy it. If you buy in a no-tax state but register at home, you'll owe your home state's tax (called "use tax") at title transfer. This rule exists specifically to prevent tax-shopping.