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.
| State | What you pay instead | $35,000 new car, taxes + fees |
|---|---|---|
| Alaska | No state tax; some towns charge local sales tax. Two-year registration is $100. | $115.00 |
| Delaware | A 5.25% document fee on the price after a trade-in, plus $35 title and $40 registration. | $1,912.50 |
| Montana | Nothing on the purchase. Registration by age, $217 a year for a car up to 4 years old. | $229.00 |
| New Hampshire | Nothing on the purchase. A town permit fee based on list price, plus state registration by weight. | $713.00 |
| Oregon | A 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.