How Much Do Car Taxes Usually Cost?

In most places, car taxes and mandatory fees at purchase typically add 5–15% of the vehicle’s price in the United States, 20–30% in much of Europe (because VAT is built into the sticker price), and roughly 10–20% in Canada and Australia; annual taxes and government fees usually range from about $100 to $1,000 (or the local equivalent), but can be higher for luxury, heavy, or high‑emission vehicles. The exact amount depends on where you live, the vehicle’s price and emissions, and whether you drive a conventional, hybrid, or electric car.

What “car taxes” usually include

“Car taxes” is a catch‑all term that covers one‑time costs due at purchase and ongoing annual charges tied to owning and operating a vehicle. Understanding each category helps you plan the true cost of ownership.

• Purchase taxes: Sales tax or VAT/GST/HST, and in many countries, one‑off registration or emissions/CO2‑based taxes.
• Registration, title, and plate fees: Government fees to title and register the vehicle and issue plates; sometimes a first‑registration levy applies.
• Annual ownership taxes: Yearly registration renewals, circulation/road taxes, personal property taxes (in some U.S. states), and CO2/weight‑based charges in many countries.
• Fuel, carbon, and usage‑based taxes: Taxes embedded in gasoline/diesel prices, carbon surcharges, pay‑per‑mile/road‑user charges in some places, and special EV fees in many U.S. states.
• Luxury or high‑emitter surcharges: Extra taxes on expensive vehicles or high CO2 output (e.g., France’s malus, the UK’s expensive car supplement, Canada’s federal luxury tax, Australia’s Luxury Car Tax).

Taken together, these determine your out‑the‑door cost at purchase and your ongoing annual burden; the mix and size of each line item vary widely by jurisdiction.

Typical costs by region (2025)

United States

At purchase, most buyers pay state and local sales tax (from 0% in a few places to about 10%+ combined in high‑tax cities), plus title/registration fees. Typical out‑the‑door taxes/fees add up to 5–15% of the vehicle price. Annual costs range from about $50 to $500 for registration, but can be $400–$1,000+ where local personal property taxes apply (e.g., parts of Virginia, Missouri, South Carolina). More than half of states now add EV registration surcharges (commonly $50–$250/year) to offset lost fuel‑tax revenue. Fuel taxes are embedded in pump prices (federal 18.4¢/gal gasoline, 24.4¢/gal diesel, plus state/local taxes and fees that vary widely).

Examples:
– California: Sales tax depends on locality (roughly 7.25%–10.25%); DMV fees include an annual vehicle license fee tied to vehicle value, a transportation improvement fee, and other charges. First‑year DMV outlays for a new mid‑priced car commonly land a few hundred dollars; annual renewals often run a few hundred dollars.
– Texas: A 6.25% state motor vehicle sales tax (no local add‑on for vehicle purchases) plus title/registration typically in the low hundreds; no annual personal property tax on personal‑use cars.
– Virginia/South Carolina/Missouri: State sales/use taxes at purchase, then significant annual personal property taxes that can total several hundred dollars or more each year depending on locality and vehicle value.

United Kingdom

VAT of 20% is included in the sticker price of new cars. Vehicle Excise Duty (VED) is due at registration: the first‑year rate scales with CO2 (ranging from £0 for zero‑emission vehicles to well over £2,700 for the highest emitters), followed by a standard annual rate (around £190 for most petrol/diesel cars in 2024–25). An “expensive car” supplement applies for five years (years 2–6) if the list price exceeded £40,000 when new. Zero‑emission vehicles are currently exempt from VED, but will enter the standard VED regime from April 2025 under UK policy changes.

European Union (examples)

VAT is typically 19–27% and included in the new‑car price; many countries add a CO2/engine/weight‑based registration tax and an annual “circulation” tax. Typical annual charges for mainstream cars often run €100–€600, but high‑emitters can face much more.

Examples:
– Germany: 19% VAT in price; a one‑time registration office fee (tens of euros); annual motor vehicle tax (Kfz‑Steuer) based on engine size and CO2, commonly about €100–€400 for typical petrol cars; diesels and high‑emitters pay more.
– France: 20% VAT in price; regional registration tax (carte grise) varies by region and vehicle power; an ecological “malus” for higher CO2 that became stricter in 2024 (very high‑emission or heavy vehicles can face multi‑thousand‑euro surcharges, capped at levels set by law); a weight‑based tax now applies above certain thresholds.

Canada

Expect GST/HST of 5–15% (rate depends on province) and, in some provinces, separate PST or surtaxes on higher‑priced vehicles. Canada also levies a federal luxury tax on vehicles priced above CA$100,000 (the lesser of 10% of the full price or 20% of the amount above CA$100,000). Registration/title fees are typically modest (often under a few hundred dollars). Annual plate renewal fees vary by province—some (like Ontario for passenger vehicles) have eliminated annual renewal fees, while others still charge them.

Australia

New vehicles include 10% GST in the sticker price. States and territories charge stamp duty on the purchase (commonly about 2–6% depending on jurisdiction and price), plus annual registration and compulsory third‑party (CTP) insurance; the combined annual “rego + CTP” often totals around A$500–A$1,200 for a typical passenger car, varying by state and vehicle. Australia’s Luxury Car Tax (LCT) applies at 33% on the portion of the price above the indexed threshold (a higher threshold for fuel‑efficient vehicles).

Other notable cases

Some markets differ dramatically. Singapore’s system (COE + Additional Registration Fee) can dwarf the vehicle price and is not directly comparable to typical “tax” regimes. Norway heavily taxes high‑emission vehicles while offering incentives to lower‑emission models; recent policy changes have reduced some EV advantages (e.g., introduction of VAT above certain thresholds), but EVs still often benefit relative to ICE vehicles.

Example estimates

The following snapshots illustrate how the math can look for a mainstream vehicle. Totals are approximate and will vary with exact location, trim, emissions, and local fees.

• United States (Texas): US$35,000 new car. Motor vehicle sales tax 6.25% ≈ $2,188; title/registration ≈ $150–$250. Out‑the‑door taxes/fees around $2,300–$2,450. Annual registration typically under $100; no annual personal property tax on personal‑use cars.
• United States (California, high‑tax city): US$35,000 car. Sales tax around 9–10% ≈ $3,150–$3,500; DMV/title/plate often $300–$600. Out‑the‑door taxes/fees about $3,500–$4,100. Annual renewal commonly $250–$450 depending on vehicle value and local add‑ons.
• United States (Virginia, county with personal property tax): US$35,000 car. 4.15% sales/use tax ≈ $1,450; title/registration about $100–$200. Annual local personal property tax commonly several hundred dollars, often roughly $400–$1,000 in year one, depending on locality and any state relief.
• United Kingdom: £30,000 petrol car. VAT included in price. First‑year VED depends on CO2 (roughly a few hundred pounds for a typical mid‑emitter), plus a £55 first‑registration fee; thereafter about £190/year if under the £40,000 list‑price threshold (otherwise add the expensive‑car supplement for years 2–6).
• Germany: €35,000 petrol car. VAT included. One‑time registration office fee on the order of €30–€60. Annual Kfz‑Steuer commonly around €120–€250 for an average‑emissions petrol model.
• Canada (Ontario): CA$40,000 car. HST 13% ≈ $5,200; initial plate/permit fees in the low hundreds or less; annual passenger‑vehicle plate renewal fees currently eliminated in Ontario, though other provinces still charge renewal fees.
• Australia (New South Wales): A$40,000 car. Stamp duty about 3% at this price ≈ A$1,200; annual rego + CTP commonly around A$700–A$1,200 depending on vehicle/insurer; LCT not applicable at this price.

These scenarios show how purchase taxes/fees can swing by thousands depending on jurisdiction, while annual obligations vary with local rules, vehicle value, and emissions.

What drives the cost

Several factors determine how much you’ll pay both up front and every year.

• Where you live: State/provincial and local tax rates, plus national VAT/GST and country‑specific registration or emissions taxes.
• Vehicle price: Sales/VAT are percentage‑based, and luxury thresholds trigger surcharges in many places.
• Emissions, weight, and engine type: CO2‑ or weight‑based taxes can be significant for large or high‑emitting cars; efficient or zero‑emission models often pay less (though some incentives are being phased out).
• Fuel type: Diesel vehicles are taxed differently in some countries; EVs may incur special annual fees in parts of the U.S.
• How you use/own the car: Business use, private ownership, leasing, or importing can alter the tax treatment.

Because these levers vary, two similar vehicles can carry very different tax bills across regions—or even across counties within the same state.

How to estimate your car taxes

A reliable estimate is straightforward if you use official calculators and your exact address and vehicle details.

• Check your state/province/country’s official tax and DMV/transport websites for sales/VAT, registration, and annual tax calculators.
• Look up local add‑ons: city/county sales tax, personal property tax millage (U.S.), or regional registration charges.
• Verify CO2/weight data for the specific trim to price first‑year and annual emissions‑based taxes accurately (UK/EU).
• Account for EV/hybrid rules: EV surcharges (U.S.), zero‑emission VED treatment (UK, changing April 2025), or CO2 exemptions/thresholds (EU).
• Factor in luxury/price thresholds and any incentives or rebates in effect at the time of purchase.

Getting the details from official sources ensures your budget reflects current laws, which change regularly and can materially affect both up‑front and annual costs.

Summary

There’s no single “usual” car tax number, but broad patterns apply: expect roughly 5–15% in purchase taxes/fees in the U.S., around 20–30% embedded in European sticker prices plus annual road taxes, and roughly 10–20% up‑front in Canada and Australia. Annual ownership taxes and fees span about $100–$1,000 for mainstream cars, with higher bills for luxury, heavy, or high‑emitting models and in jurisdictions with personal property taxes. Always price your specific vehicle and location with official calculators before you buy.

How much will it cost me to register my car in Maine?

Registering a car in Maine costs a $35 state registration fee for most passenger vehicles, a $6 agent fee for new registrations, and an excise tax based on the vehicle’s value. The excise tax is a local fee, calculated using a declining scale over the vehicle’s age and its original price. 
Cost Breakdown

• State Registration Fee: A flat fee of $35 for passenger vehicles. 
• Agent Fee: A $6 fee for new registrations handled by the local town office or agent. 
• Excise Tax: This is the largest part of the registration cost and is a local tax that is calculated based on: 
  • The vehicle’s Manufacturer’s Suggested Retail Price (MSRP) when new. 
  • A tax rate that decreases each year for the first few years. 

How to Estimate Your Cost

1. Find your vehicle’s MSRP: Opens in new tabLook for it on the dealer invoice or manufacturer’s window sticker if the vehicle is new. 
2. Use the excise tax table: Opens in new tabMultiply the MSRP by the appropriate percentage for the vehicle’s age to find your excise tax amount, which will be a local fee. 

Example of Excise Tax 

• Year 1: $19,500 MSRP x 2.40% = $468 in excise tax.
• Year 2: $19,500 MSRP x 1.75% = $341.25 in excise tax.
• Year 3: $19,500 MSRP x 1.35% = $263.25 in excise tax.

Where to Register
You can register your vehicle at your local Maine town office. You can also often renew online through the state’s Rapid Renewal Program if there are no changes to your vehicle’s details. 
Important Documents
When registering, you will need the vehicle’s title, bill of sale, or dealer invoice.

How much will it cost to register my car in Nebraska?

Registering a vehicle in Nebraska involves various costs, including a $15 passenger vehicle registration fee, the state’s 5.5% sales tax on the vehicle’s purchase price, plus potentially additional local taxes. You will also need to pay for proof of financial responsibility (insurance). 
Breakdown of Costs

• Registration Fee: Opens in new tabA basic registration fee of $15 is charged for passenger and leased vehicles. 
• Sales Tax: Opens in new tabYou’ll pay a 5.5% statewide sales tax on the purchase price of the vehicle. This is applied to the price after any trade-ins and rebates are accounted for. 
• Local Taxes: Opens in new tabDepending on your location within Nebraska, there may be additional local sales taxes that will be added to the state sales tax. 
• Proof of Financial Responsibility: Opens in new tabYou are required to show proof of insurance for your vehicle. 

To Register Your Vehicle
You will need to present proof of sales tax payment, proof of financial responsibility (insurance), and the signed lease agreement if it’s a leased vehicle to the County Treasurer’s office. 
Important Considerations

• Commercial Vehicles: Opens in new tabCommercial trucks and truck tractors have registration fees based on their gross vehicle weight. 
• Vehicle Identification Number (VIN): Opens in new tabThe VIN is the identifying code for your car and is necessary for registration. 

How much is my sales tax on my car in Arkansas?

6.5%
A taxpayer who purchases a used motor vehicle with a sales price of at least $10,000, but less than $15,000, will pay sales or use tax at the reduced state tax rate of 3.5%. A taxpayer who purchases a used motor vehicle with a sales price of $15,000 or more will pay sales or use tax at the full 6.5% state tax rate.

How much is Virginia vehicle tax?

Virginia is required to collect a 4.15% Sales and Use Tax (SUT) at the time of titling whenever a vehicle is sold, and/or the ownership of the vehicle changes.