The Price Of Mobility
The American dream of car ownership is quickly becoming a financial nightmare for some, and all of these states are a living example of this drastic situation. Are you willing to splurge your savings on a mere ride?
Nevada
In Nevada, a car might cost you something around $12,297 a year as the sales tax tops out at around $2,625 for a new ride. Insurance isn’t cheap either, as it runs at $3,194 annually. Also, don’t forget about gasoline, which sets you back another $2,188 each year.
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Nevada (Cont.)
Similarly, the vehicle registration fees are quite pricey here. They are based on what your car originally sold for. The starting registration fee starts at about $33. Also, the Governmental Services Tax adds 4 cents for each dollar of the vehicle's depreciated value.
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Nevada (Cont.)
For example, if a vehicle has an MSRP of $30,000, the GST would be calculated at $10,500 (35% of $30,000), leading to a substantial tax burden. Plus, an additional tax of 1 cent per dollar is also levied on the same depreciated value, which increases the registration costs.
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Washington
The Pacific Northwest Premium’s residents literally have to spend around $7,151 a year on their vehicles. The sales tax rate varies between 6.5% and 10.4% approximately, depending on where you live. Also, the minimum coverage insurance costs are said to be around $513 a year.
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Washington (Cont.)
Washington has some of the highest gas prices in the country. The reported cost comes up to $2,421 a year just for gasoline. The fuel tax, which is 49.4 cents per gallon, is a big part of that. For instance, in November 2023, Washington's average was $4.59.
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Washington (Cont.)
The cap-and-trade program that came with the Climate Commitment Act has also been important since it started in 2022. Basically, it makes oil refiners buy allowances for their carbon emissions, which raises their costs. And of course, those extra costs get passed down to car owners.
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California
Owning a car in California can really drain your wallet, with annual costs averaging $12,182. This makes it the highest in the country. When you buy a new ride that costs around $38,883, you’re hit with a sales tax of $2,820 right off the bat.
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California (Cont.)
On top of that, the yearly car insurance comes out to about $1,500 to 2,000, and filling up your tank is no small expense either. According to YCharts, as of December 2024, the retail price of gasoline in California was reported to be close to $4.295 per gallon.
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Michigan
If you’re buying a new ride, you’ll need to cough up at least $2,844 in sales tax. Insurance is another biggie, that racks up about $2,133 each year, mainly because of the state’s unlimited personal injury protection laws and some high urban crime rates.
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Michigan (Cont.)
According to AAA's 2024 report, it costs around $12,297 a year to own and run a new car in Michigan. This breaks down to about $1,024 a month. That's an increase of $115 from last year, mostly because of higher depreciation and finance charges.
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Florida
This sunshine state's steep expenses lead to annual car ownership costs reaching around $26,008. The state charges $2,844 in sales tax on new vehicles, while insurance premiums top it all at the rate of $4,088. It is among the highest nationwide.
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Florida (Cont.)
This is mostly because of the many accidents that take place, plenty of insurance scams, and a good number of drivers who don’t have insurance. The state has some specific laws, like the requirement for personal injury protection (PIP), which hikes insurance prices.
Florida (Cont.)
The warm, muggy weather in Florida can also wear out cars faster, which means you'll spend more on maintenance and repairs. On average, folks end up paying around $1,017 a year for upkeep, and service prices are usually higher here.
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Illinois
In this state, drivers are shelling out around $20,448 a year. When you buy a new car, the state's sales tax bites off about $3,125, which is right on par with California. Don't forget about maintenance and repairs, which add another $1,000 to the yearly tab.
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Illinois (Cont.)
Car owners' financial burden is further increased when they reside in cities like Chicago. They are faced with extra expenses for many things. One is parking, which may cost anywhere from $100 to $300 per month, and city stickers, which are around $105 a year.
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Rhode Island
Owning a car in Rhode Island costs around $20,676 per year. This includes $3,500 in sales tax on new car purchases, along with an average of $2,733 per year for full coverage insurance. Fuel expenses add another $2,950, and other associated costs contribute an additional $387 annually.
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Rhode Island (Cont.)
Rhode Island is said to be the 6th most expensive state in terms of car insurance. On the other hand, Maine is the cheapest, with a minimum coverage cost of around $858. Factors like severe weather risks contribute to the high insurance premiums.
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Connecticut
In Connecticut, car ownership comes with some hefty costs. Additional repair and maintenance expenses can reach $418 here, which is among the highest in the country. If you're buying a new car, expect to pay $3,175 in sales tax. Besides, the state's wealthier population and high car prices are reflected in its steep insurance premiums.
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Connecticut (Cont.)
Fuel costs are also high in Connecticut, with the average driver spending around $2,393 a year. Due to the state's congested roads and heavy traffic, drivers are paying more for fuel compared to other areas. This, combined with some of the highest insurance rates in the country, makes owning a car here quite expensive.
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Connecticut (Cont.)
Apparently, Connecticut imposes one of the highest vehicle property taxes in the US, with an effective tax rate of 2.1%. For example, on a car valued at $26,420, the annual vehicle tax would be approximately $554, adding yet another financial burden for car owners.
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New Jersey
If you’re driving around New Jersey, expect to shell out about $20,885 a year just for that car. When you buy a new vehicle, there’s a sales tax of $3,313. Basically, you will have to pay a sales tax of 6.625%. It does not matter whether you're getting it from in-state or out-of-state.
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New Jersey (Cont.)
On top of that vehicle tax, insurance will run you close to $1,901 in a year. Blame the crowded roads and high accident rates. Plus, the annual registration fees charge between $46.50 and $98, depending on how old and heavy your vehicle is.
Kansas
Next on the list is Kansas. The yearly cost of a car will come to $21,094. The state also has one of the highest sales taxes in the country, a hefty $3,250, on the purchase of new cars. The calculated annual cost of fuel is something around $2,197.
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Kansas (Cont.)
Vehicle registration fees in Kansas are quite reasonable compared to other states, but they still add to the overall cost. For example, if you have a car that weighs under 4,500 lbs, you’re looking at around $42.25. If your ride exceeds that weight limit, it’s about $52.25.
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Kentucky
Some believe Kentucky’s varied geography and rural driving conditions impact the total vehicle costs. The sales tax rate here is reported as 6%. Also, given the high accident incidence and risk of natural disasters in the state, insurance premiums are noticeably high.
Kentucky (Cont.)
The state’s insurance costs come to around $1,291 per year. Besides, standard cars have a maximum registration fee of about $21 per year and $9 for a motor vehicle title application. Additionally, the high cost of vehicle maintenance and repairs, often exacerbated by rough rural roads, further burdens car owners.
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Utah
As a Utah driver, you will have to spend around $22,129 per year. You should budget approximately $1,500 for sales tax when buying a $25,000 car. Also, note that roughly $1,500 per year will be needed for car upkeep and repairs.
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Utah (Cont.)
However, vehicle registration fees in Utah are comparatively cheap. For cars that weigh under 12,000 lbs, the basic fee is around $44. But also keep in mind that there might be extra charges depending on the age and type of your vehicle.
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Utah (Cont.)
You are bound to spend $57 a month for basic car insurance and around $178 if you want full coverage. In massive cities like Salt Lake City or Provo, the rates can be a bit higher. For parents adding a 16-year-old boy to their policy, it's $1,248 for full coverage.
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Tennessee
In addition to a 7% state sales tax, vehicle purchases in Tennessee are subject to municipal sales taxes. These can truly increase the tax by 2.25% on the first $1,600 of the purchase price, up to $36, and by an additional 2.75% for amounts over that limit.
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Tennessee (Cont.)
Besides that, for regular plates, the cost of titling and registering a car in Tennessee is more or less $77. This covers a $14 title charge and a $29 license plate fee. Vehicles also lose about 15% of their value in terms of depreciation in the first year alone.
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Indiana
To get a vehicle registered in Indiana, the basic fee for a passenger car will be around $21.35. However, there are some additional charges depending on what your ride is like. If you've got an electric car, there's a fee of $221, and if it's a hybrid then around $74.
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Indiana (Cont.)
Overall, owning a car in Indiana costs around $10,880 annually. This includes a 7% sales tax on new vehicles, $3.01 per gallon for gas (as of December 2024), and an average of $1,443 per year for full coverage insurance. These expenses add up, making car ownership financially burdensome.
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Texas
Welcome to Texas, where, due to the state's enormous size and variety of driving conditions, minimum coverage insurance totals around $990 per year. Fuel prices, on the other hand, are $1,459 if seen yearly. Oh, and don’t forget about maintenance and repairs—that will be an additional $398.
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Texas (Cont.)
For personal vehicles and light trucks, the state of Texas mandates an annual vehicle registration amount of about $50.75. Depending on county laws, there may be some added municipal costs that range from $10 to $30 on top of the standard fee.
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Maryland
Maryland has some of the highest title fees, around $100. Starting July 1, 2024, the registration fees have apparently gone up a lot. For passenger cars that weigh up to 3,500 pounds, the new fee is about $221. The fee changes every two years. It is seen as a jump from the previous $135.
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Maryland (Cont.)
In Maryland, electric vehicles have an additional $100 to $125 registration fee. Besides, gasoline-powered cars made after 1996 and diesel cars made after 2007 must pass emissions testing every two years, costing about $14–20. There’s also a 6% sales tax when buying a car.
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Maryland (Cont.)
Including costs for insurance, gas, upkeep, and registration, the average if you want to have a car in Maryland will be about $3,592 per year. According to this statistic, Maryland happens to be one of the most costly states in the world for owning an automobile.
Minnesota
In Minnesota, the expense of owning and operating a brand-new automobile is about $12,297 per year, or $1,024.71 each month. This figure includes costs such as car insurance, which averages $1,242 per year for full coverage and $556 for minimum coverage. Plus, the base registration fee starts at $35.
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Minnesota (Cont.)
Car owners in Minneapolis, the largest city in Minnesota, pay an average of $2,448 for full coverage and $716 for minimum coverage annually. This equates to $204 and $60 monthly payments, respectively. In case of a DUI, the policy premium could increase by 113%.
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Nebraska
When it comes to Nebraska, the registration fee for a new car is approximately $15. A motor vehicle tax is additionally charged as per the Manufacturer's Suggested Retail Price (MSRP) of the vehicle when it’s first registered and every year after that. This continues until the vehicle turns 14 years old or more.
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Nebraska (Cont.)
Car insurance rates in Nebraska are a bit lower than the national average. According to Bankrate estimates, the typical annual premium is around $2,316 for full coverage. However, if you have poor credit, you can expect to pay about 119% more for insurance compared to those with good credit.
Georgia
One of the largest contributors to vehicle ownership costs in Georgia is insurance. The average annual insurance payment for a single, 40-year-old male with a clean record is close to $2,876, which is more than the national average of $2,458.
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Georgia (Cont.)
Here, owning a car sets you back about $8,249 each year. When you buy a new vehicle, you’ll pay around $3,128 in sales tax. Plus, you can expect to spend around $408 on repairs and maintenance. The crazy traffic in Atlanta and many highways make it pricier.
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