States With No Sales Tax on Cars

Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. Two of them still charge something on the purchase, and all five charge to title and register the car.

Data checked November 11, 2026

StateWhat you pay instead$35,000 new car, taxes + fees
AlaskaNo state tax; some towns charge local sales tax. Two-year registration is $100.$115.00
DelawareA 5.25% document fee on the price after a trade-in, plus $35 title and $40 registration.$1,912.50
MontanaNothing on the purchase. Registration by age, $217 a year for a car up to 4 years old.$229.00
New HampshireNothing on the purchase. A town permit fee based on list price, plus state registration by weight.$713.00
OregonA 0.5% privilege tax on new cars from Oregon dealers, and title and registration fees by mpg.$417.00

From each state calculator. Some registration lines are estimates; the state pages mark them.

Where you register is what counts

Car sales tax generally follows the state where the car is registered. If you live in a state with sales tax and buy a car in Oregon or Montana, you'll typically pay your home state's tax when you register it there. The no-tax states only save money for people who live in them.

Other states with a different kind of tax

Several states replace sales tax on cars with something else. Georgia charges a one-time 7% title ad valorem tax, North Carolina a 3% highway use tax, Iowa a 5% fee for new registration and South Carolina a 5% infrastructure maintenance fee capped at $500, which makes South Carolina one of the cheapest states for an expensive car.

FAQ

Can I buy a car in a no-sales-tax state to avoid tax?

Not usually. Sales tax on a car is generally owed in the state where you register it, so a resident of a taxing state pays that state's tax when registering the car at home.

Which state is cheapest to buy a car in?

Among the five, Montana and New Hampshire charge no tax at all on the purchase, while Delaware's 5.25% document fee works much like a sales tax. Registration costs differ a lot, so compare the totals.

Does Oregon charge sales tax on cars?

No, but Oregon dealers pay a 0.5% privilege tax on new vehicles, which is usually passed on.

Every figure comes from the same engine as our state calculators. See how we calculate.