Cost To Own a Car for a Year in Every State
Among the most essential expenses for Americans is that of their car. Without it, they can’t get to and from the jobs they need to, well, pay for their car. And even if you’re so lucky to live near enough to your job that you can walk or take mass transit, the limitations placed on the rest of your life by going without wheels can be burdensome. However, buying a car is an absolute catastrophe purely from a financial perspective. The resale value plummets from the moment you drive it off the lot, and that’s just part of the story. From the insurance to the repairs to the gas to the monthly payments, your car is going to drain your bank account year after year for as long as you own it.
To help, GOBankingRates found what the costs of owning a car come to in your state for a full calendar year. Clearly, they’re going to be very different, depending on your ride, but by looking at geographical factors — like sales tax, average repair costs and gas — you can develop a better sense of what to expect in terms of ongoing costs. The study assumes the same MSRP ($37,876, the average transaction amount from Kelley Blue Book) with a 20% down payment and one year of financing payments before adding in estimated costs like gas (assuming you have a 14-gallon tank and fill up once a week) and repairs. All told, it shows how the cost of driving is a lot higher in some states than others.
So, take a look and see whether your home state has a driving economy that’s making it that much harder to make ends meet or one that allows you to look forward to affordable auto ownership for decades to come.
Last updated: March 30, 2020
California
State sales tax: 7.25% ($2,746.01)
Average car insurance premium: $2,135
Average cost of gas per gallon: $3.44
Average cost of gas annually: $2,507.23
Average car repair costs: $403.13
Total costs for a year: $22,230.57
Michigan
State sales tax: 6.00% ($2,272.56)
Average car insurance premium: $3,466
Average cost of gas per gallon: $2.23
Average cost of gas annually: $1,623.44
Average car repair costs: $356.16
Total costs for a year: $22,157.36
Nevada
State sales tax: 6.85% ($2,594.51)
Average car insurance premium: $2,486
Average cost of gas per gallon: $2.88
Average cost of gas annually: $2,095.18
Average car repair costs: $392.45
Total costs for a year: $22,007.34
Rhode Island
State sales tax: 7.00% ($2,651.32)
Average car insurance premium: $2,092
Average cost of gas per gallon: $2.43
Average cost of gas annually: $1,767.58
Average car repair costs: $390.12
Total costs for a year: $21,340.22
Washington
State sales tax: 6.80% ($2,575.57)
Average car insurance premium: $1,640
Average cost of gas per gallon: $3.09
Average cost of gas annually: $2,248.79
Average car repair costs: $389.49
Total costs for a year: $21,293.05
New Jersey
State sales tax: 6.63% ($2,509.29)
Average car insurance premium: $2,001
Average cost of gas per gallon: $2.44
Average cost of gas annually: $1,779.23
Average car repair costs: $401.59
Total costs for a year: $21,130.31
Read: Reliable Cars To Own for More Than 15 Years
Kentucky
State sales tax: 6.00% ($2,272.56)
Average car insurance premium: $2,385
Average cost of gas per gallon: $2.21
Average cost of gas annually: $1,606.70
Average car repair costs: $390.02
Total costs for a year: $21,093.48
Connecticut
State sales tax: 6.35% ($2,405.13)
Average car insurance premium: $2,010
Average cost of gas per gallon: $2.50
Average cost of gas annually: $1,821.46
Average car repair costs: $413.91
Total costs for a year: $21,089.69
Florida
State sales tax: 6.00% ($2,272.56)
Average car insurance premium: $2,178
Average cost of gas per gallon: $2.28
Average cost of gas annually: $1,656.93
Average car repair costs: $387.56
Total costs for a year: $20,934.25
Louisiana
State sales tax: 5.00% ($1,893.80)
Average car insurance premium: $2,608
Average cost of gas per gallon: $2.10
Average cost of gas annually: $1,528.80
Average car repair costs: $388.57
Total costs for a year: $20,858.37
Arizona
State sales tax: 5.60% ($2,121.06)
Average car insurance premium: $1,791
Average cost of gas per gallon: $2.73
Average cost of gas annually: $1,986.71
Average car repair costs: $380.63
Total costs for a year: $20,718.60
Pennsylvania
State sales tax: 6.00% ($2,272.56)
Average car insurance premium: $1,700
Average cost of gas per gallon: $2.58
Average cost of gas annually: $1,875.33
Average car repair costs: $377.08
Total costs for a year: $20,664.17
Maryland
State sales tax: 6.00% ($2,272.56)
Average car insurance premium: $1,842
Average cost of gas per gallon: $2.34
Average cost of gas annually: $1,704.25
Average car repair costs: $392.40
Total costs for a year: $20,650.41
Arkansas
State sales tax: 6.50% ($2,461.94)
Average car insurance premium: $1,744
Average cost of gas per gallon: $2.13
Average cost of gas annually: $1,551.37
Average car repair costs: $383.78
Total costs for a year: $20,580.29
Minnesota
State sales tax: 6.50% ($2,461.94)
Average car insurance premium: $1,620
Average cost of gas per gallon: $2.27
Average cost of gas annually: $1,654.02
Average car repair costs: $375.73
Total costs for a year: $20,550.89
Tennessee
State sales tax: 7.00% ($2,651.32)
Average car insurance premium: $1,477
Average cost of gas per gallon: $2.16
Average cost of gas annually: $1,572.48
Average car repair costs: $394.18
Total costs for a year: $20,534.18
Illinois
State sales tax: 6.25% ($2,367.25)
Average car insurance premium: $1,531
Average cost of gas per gallon: $2.49
Average cost of gas annually: $1,815.63
Average car repair costs: $374.75
Total costs for a year: $20,527.83
Texas
State sales tax: 6.25% ($2,367.25)
Average car insurance premium: $1,823
Average cost of gas per gallon: $2.06
Average cost of gas annually: $1,501.86
Average car repair costs: $385.62
Total costs for a year: $20,516.93
Kansas
State sales tax: 6.50% ($2,461.94)
Average car insurance premium: $1,669
Average cost of gas per gallon: $2.15
Average cost of gas annually: $1,563.02
Average car repair costs: $375.22
Total costs for a year: $20,508.38
Hawaii
State sales tax: 4.00% ($1,515.04)
Average car insurance premium: $1,589
Average cost of gas per gallon: $3.54
Average cost of gas annually: $2,577.85
Average car repair costs: $370.31
Total costs for a year: $20,491.40
West Virginia
State sales tax: 6.00% ($2,272.56)
Average car insurance premium: $1,653
Average cost of gas per gallon: $2.32
Average cost of gas annually: $1,689.69
Average car repair costs: $372.93
Total costs for a year: $20,427.38
Massachusetts
State sales tax: 6.25% ($2,367.25)
Average car insurance premium: $1,466
Average cost of gas per gallon: $2.43
Average cost of gas annually: $1,765.40
Average car repair costs: $381.87
Total costs for a year: $20,419.72
Indiana
State sales tax: 7.00% ($2,651.32)
Average car insurance premium: $1,270
Average cost of gas per gallon: $2.17
Average cost of gas annually: $1,578.30
Average car repair costs: $361.38
Total costs for a year: $20,300.20
Vermont
State sales tax: 6.00% ($2,272.56)
Average car insurance premium: $1,374
Average cost of gas per gallon: $2.53
Average cost of gas annually: $1,844.02
Average car repair costs: $359.64
Total costs for a year: $20,289.42
Find Out: 25 Freebies To Ask For When Buying a New Car
New York
State sales tax: 4.00% ($1,515.04)
Average car insurance premium: $2,081
Average cost of gas per gallon: $2.56
Average cost of gas annually: $1,865.14
Average car repair costs: $375.66
Total costs for a year: $20,276.04
Idaho
State sales tax: 6.00% ($2,272.56)
Average car insurance premium: $1,269
Average cost of gas per gallon: $2.56
Average cost of gas annually: $1,860.77
Average car repair costs: $385.27
Total costs for a year: $20,226.80
Nebraska
State sales tax: 5.50% ($2,083.18)
Average car insurance premium: $1,493
Average cost of gas per gallon: $2.29
Average cost of gas annually: $1,667.85
Average car repair costs: $369.60
Total costs for a year: $20,052.83
Delaware
State sales tax: 4.25% ($1,609.73)
Average car insurance premium: $1,959
Average cost of gas per gallon: $2.24
Average cost of gas annually: $1,632.90
Average car repair costs: $386.12
Total costs for a year: $20,026.95
Utah
State sales tax: 4.85% ($1,836.99)
Average car insurance premium: $1,515
Average cost of gas per gallon: $2.51
Average cost of gas annually: $1,825.82
Average car repair costs: $399.15
Total costs for a year: $20,016.16
North Dakota
State sales tax: 5.00% ($1,893.80)
Average car insurance premium: $1,565
Average cost of gas per gallon: $2.31
Average cost of gas annually: $1,680.22
Average car repair costs: $373.09
Total costs for a year: $19,951.31
Mississippi
State sales tax: 5.00% ($1,893.80)
Average car insurance premium: $1,681
Average cost of gas per gallon: $2.08
Average cost of gas annually: $1,511.33
Average car repair costs: $392.33
Total costs for a year: $19,917.66
Georgia
State sales tax: 4.00% ($1,515.04)
Average car insurance premium: $1,873
Average cost of gas per gallon: $2.20
Average cost of gas annually: $1,602.33
Average car repair costs: $402.66
Total costs for a year: $19,832.23
Wyoming
State sales tax: 4.00% ($1,515.04)
Average car insurance premium: $1,721
Average cost of gas per gallon: $2.43
Average cost of gas annually: $1,767.58
Average car repair costs: $387.83
Total costs for a year: $19,830.65
Ohio
State sales tax: 5.75% ($2,177.87)
Average car insurance premium: $1,197
Average cost of gas per gallon: $2.24
Average cost of gas annually: $1,630.72
Average car repair costs: $354.24
Total costs for a year: $19,799.03
Missouri
State sales tax: 4.23% ($1,600.26)
Average car insurance premium: $1,805
Average cost of gas per gallon: $2.10
Average cost of gas annually: $1,528.80
Average car repair costs: $378.79
Total costs for a year: $19,752.05
Iowa
State sales tax: 5.00% ($1,893.80)
Average car insurance premium: $1,360
Average cost of gas per gallon: $2.21
Average cost of gas annually: $1,606.70
Average car repair costs: $363.13
Total costs for a year: $19,662.83
Wisconsin
State sales tax: 5.00% ($1,893.80)
Average car insurance premium: $1,320
Average cost of gas per gallon: $2.26
Average cost of gas annually: $1,646.01
Average car repair costs: $356.84
Total costs for a year: $19,655.85
South Dakota
State sales tax: 4.00% ($1,515.04)
Average car insurance premium: $1,614
Average cost of gas per gallon: $2.30
Average cost of gas annually: $1,675.86
Average car repair costs: $378.63
Total costs for a year: $19,622.73
New Mexico
State sales tax: 4.00% ($1,515.04)
Average car insurance premium: $1,605
Average cost of gas per gallon: $2.28
Average cost of gas annually: $1,656.20
Average car repair costs: $382.42
Total costs for a year: $19,597.86
Colorado
State sales tax: 2.90% ($1,098.40)
Average car insurance premium: $1,973
Average cost of gas per gallon: $2.29
Average cost of gas annually: $1,670.03
Average car repair costs: $396.41
Total costs for a year: $19,577.05
Maine
State sales tax: 5.00% ($1,893.80)
Average car insurance premium: $1,062
Average cost of gas per gallon: $2.37
Average cost of gas annually: $1,722.45
Average car repair costs: $354.38
Total costs for a year: $19,471.83
Oklahoma
State sales tax: 3.25% ($1,230.97)
Average car insurance premium: $1,822
Average cost of gas per gallon: $2.08
Average cost of gas annually: $1,513.51
Average car repair costs: $378.66
Total costs for a year: $19,384.34
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Virginia
State sales tax: 4.15% ($1,571.85)
Average car insurance premium: $1,194
Average cost of gas per gallon: $2.16
Average cost of gas annually: $1,573.94
Average car repair costs: $397.24
Total costs for a year: $19,176.23
North Carolina
State sales tax: 3.00% ($1,136.28)
Average car insurance premium: $1,425
Average cost of gas per gallon: $2.21
Average cost of gas annually: $1,605.24
Average car repair costs: $397.56
Total costs for a year: $19,003.28
Alabama
State sales tax: 2.00% ($757.52)
Average car insurance premium: $1,724
Average cost of gas per gallon: $2.12
Average cost of gas annually: $1,541.90
Average car repair costs: $394.65
Total costs for a year: $18,857.27
Oregon
State sales tax: 0.50% ($189.38)
Average car insurance premium: $1,548
Average cost of gas per gallon: $2.97
Average cost of gas annually: $2,162.89
Average car repair costs: $389.93
Total costs for a year: $18,729.40
Montana
State sales tax: 0.00%
Average car insurance premium: $1,963
Average cost of gas per gallon: $2.40
Average cost of gas annually: $1,747.93
Average car repair costs: $382.97
Total costs for a year: $18,533.10
Alaska
State sales tax: 0.00%
Average car insurance premium: $1,533
Average cost of gas per gallon: $2.93
Average cost of gas annually: $2,135.22
Average car repair costs: $378.82
Total costs for a year: $18,486.24
South Carolina
State sales tax: 5.00%, $500 maximum
Average car insurance premium: $1,620
Average cost of gas per gallon: $2.10
Average cost of gas annually: $1,526.62
Average car repair costs: $394.27
Total costs for a year: $18,480.09
New Hampshire
State sales tax: 0.00%
Average car insurance premium: $1,070
Average cost of gas per gallon: $2.36
Average cost of gas annually: $1,714.44
Average car repair costs: $364.77
Total costs for a year: $17,588.41
More From GOBankingRates
Methodology: To generate these rankings, GOBankingRates surveyed and totaled the cost of buying and owning a car for one year in all 50 states. This total included four key car expenses: (1) car sales tax, based on rates provided by individual state websites; taxes were based on the average car transaction amount of $37,876 in February 2020 as reported by Kelley Blue Book; (2) average annual car insurance premiums, sourced from CarInsurance.com’s 2019 report; (3) average annual gas expenses, based on an average of historical regular gas prices in each state sourced from AAA’s Fuel Gauge Report on March 9, 2020; the expense was calculated based on the assumption of a driver filling up a 14-gallon tank once a week; (4) average annual car maintenance and repair costs, sourced from CarMD’s 2019 State Repair Cost Rankings. These expenses were combined with the cost to finance a new vehicle — based on a $37,876 MSRP, a 20% down payment of $7,575.20, an average credit score of 703 as sourced from Experian, an interest rate of 5.04% as sourced from U.S.News & World Report and a loan length of 60 months, which equals $572 per month or $6,864 per year — to determine the cost to own a car for a year. GOBankingRates also attempted to calculate for title and registration fees, but with such varying degrees between states’ car excise and personal property tax laws as well as rules for weight of vehicles, age of vehicles and the cost of the vehicle, GOBankingRates decided to not to include these fees in its final ranking. All data is up to date as of March 9, 2020.
This article originally appeared on GOBankingRates.com: Cost To Own a Car for a Year in Every State
