These rankings consider the total "out-the-door" price, including tax, title, and dealer fees.
Dealer fees can vary wildly because many states do not cap them. : Capped at $75 . Arkansas : Typically around $110 . South Dakota : Averages $115 with low excise taxes. New York : Capped at $175 . 🛠️ Best States for Total Ownership Costs
: Features 0% sales tax , but be wary of higher "documentation fees" that can act similarly to a tax in some cases. Lowest Sales Tax and Fees cheap states to buy cars
: Offers 0% state sales tax and some of the nation's lowest dealer fees, though local municipal taxes may apply.
: Another 0% sales tax state with low registration fees ($51) and affordable insurance. Arkansas : Typically around $110
If you aren't in a "NOMAD" (tax-free) state, these states offer the best balance of low taxes and dealer costs. Alabama : 2% Colorado : 2.9% North Carolina : 3% (Highway Use Tax) Oklahoma : 3.25% States with the Lowest Dealer/Doc Fees
Finding the cheapest state to buy a car involves balancing purchase prices, sales taxes, and ongoing fees. For 2026, and New Hampshire are consistently rated as the top choices because they charge zero sales tax and maintain low registration fees. 🏎️ Top 5 Cheapest States to Buy a Car 🛠️ Best States for Total Ownership Costs :
: Frequently used by luxury buyers for its 0% tax and low registration costs, though residency rules apply.