CarEdge Insights
Buying a car in 2026? Your location can have a big impact on how much you’ll pay. From state sales taxes to registration fees, the cost of a new or used car can vary by thousands of dollars depending on where you buy. So, where can you find the best deals this year? We’ve analyzed nationwide data to identify the cheapest states to buy a car in 2026. Whether you’re looking for a brand-new ride or a used car, knowing where to shop can help you save big on your next vehicle. Here’s where in America you’re most likely to drive home a great deal.
First, a Quick Look at Nationwide Price Trends
Nationwide, the average new car transaction price in 2026 is $50,000. However, that number only tells part of the story. The actual cost of a new car varies widely from one state to the next due to differences in sales tax, registration fees, and dealer charges.
By calculating the total out-the-door price for the average new car across all 50 states, we’ve pinpointed where car buyers will save the most – and where they’ll pay the highest prices. But first, an important note: When buying a car out of state, the sales tax you owe is based on where you register the vehicle, not where you buy it. Always check with your local DMV to confirm the exact process and avoid unexpected costs.
The 5 Cheapest States to Buy a Car in 2026
If you’re looking to save thousands of dollars on your next vehicle, your best bet is to shop in one of these five states.
1. Oregon Is the Cheapest State to Buy a Car
Why It’s the Cheapest: No state sales tax, low registration fees
Total Additional Costs: $500–$700
🚗 Average Savings vs. Most Expensive States: $3,500+
Oregon is the absolute cheapest state to buy a car in 2026, thanks to its lack of a statewide sales tax and low registration fees. On top of that, dealership documentation fees (Doc Fees) are lower than the national average.
2. New Hampshire
Why It’s Affordable: No state sales tax
Total Additional Costs: $650–$850
🚗 Average Savings vs. Most Expensive States: $3,000–$3,500
New Hampshire also has no state sales tax, keeping vehicle prices lower than in most other states. While registration fees in New Hampshire are slightly higher than in Oregon, the savings on sales tax still make it one of the most affordable places to buy a car.
3. Montana
Why It’s Affordable: No state sales tax, low registration costs
Total Additional Costs: $500–$750
🚗 Average Savings vs. Most Expensive States: $3,000+
Montana has long been a go-to state for those looking to buy a car while avoiding extra fees. With no state sales tax and relatively low registration fees, Montana remains one of the cheapest states to purchase a vehicle in 2026.
4. Alaska
Why It’s a Great Deal: No state sales tax, reasonable fees
Total Additional Costs: $650–$900
🚗 Average Savings vs. Most Expensive States: $2,000+
Alaska rounds out the top five with zero state sales tax and lower-than-average Doc Fees, making it one of the best states for keeping out-the-door costs low.
5. Delaware
Why It’s a Great Deal: No state sales tax, low fees
Total Additional Costs: $700–$2,200*
🚗 Average Savings vs. Most Expensive States: $2,000+
Delaware is another no-sales-tax state, meaning buyers can avoid a hefty extra charge when purchasing a new or used vehicle. However, Delaware charges a Doc Fee that is 4.25% of the vehicle’s value, which in practice in similar to a sales tax. Still, Delaware is one of the cheapest states to purchase a car in 2026.
The Complete Rankings
Looking for your state? We’ve crunched the numbers for all 50 states, using the state sales tax rates, vehicle registration fees, and average Doc Fees to calculate the out-the-door price in each U.S. state. Feel free to sort the data by any of the variables to see how your state stacks up.
| State | Cheapest States to Buy a Car | State Sales Tax | Average Doc Fee | Registration Fees | Average New Car Price (w/ tax and fees) |
|---|---|---|---|---|---|
| Oregon | 1 | 0.00% | $250 | $169 | $50,159 |
| New Hampshire | 2 | 0.00% | $375 | $51 | $50,166 |
| Delaware | 5 | 0.00% | $2,114* | $45 | $51,910 |
| Montana | 3 | 0.00% | $299 | $237 | $50,276 |
| Alaska | 4 | 0.00% | $299 | $245 | $50,284 |
| New York | 6 | 4.00% | $175 | $146 | $52,040 |
| South Dakota | 7 | 4.20% | $200 | $122 | $52,140 |
| Hawaii | 8 | 4.00% | $395 | $78 | $52,192 |
| Georgia | 9 | 4.00% | $599 | $20 | $52,338 |
| Missouri | 10 | 4.23% | $565 | $57 | $52,455 |
| Colorado | 11 | 2.90% | $699 | $595 | $52,469 |
| New Mexico | 12 | 4.88% | $339 | $60 | $52,553 |
| Wisconsin | 13 | 5.00% | $299 | $85 | $52,598 |
| Alabama | 14 | 4.00% | $489 | $393 | $52,601 |
| North Dakota | 15 | 5.00% | $299 | $123 | $52,636 |
| Oklahoma | 16 | 4.50% | $599 | $100 | $52,665 |
| Louisiana | 17 | 5.00% | $425 | $64 | $52,703 |
| Wyoming | 18 | 4.00% | $500 | $616 | $52,835 |
| Nebraska | 19 | 5.50% | $299 | $83 | $52,843 |
| Ohio | 20 | 5.75% | $250 | $31 | $52,866 |
| Vermont | 21 | 6.00% | $200 | $78 | $52,986 |
| Maine | 22 | 5.50% | $499 | $40 | $53,000 |
| West Virginia | 23 | 6.00% | $250 | $52 | $53,010 |
| Texas | 24 | 6.25% | $150 | $74 | $53,056 |
| Michigan | 25 | 6.00% | $260 | $128 | $53,096 |
| Arkansas | 26 | 6.50% | $129 | $28 | $53,113 |
| Utah | 27 | 6.10% | $299 | $57 | $53,114 |
| South Carolina | 28 | 6.00% | $400 | $40 | $53,148 |
| North Carolina | 29 | 4.75% | $699 | $370 | $53,159 |
| Kentucky | 30 | 6.00% | $450 | $26 | $53,184 |
| Pennsylvania | 31 | 6.00% | $449 | $39 | $53,196 |
| Virginia | 32 | 5.30% | $799 | $36 | $53,197 |
| Iowa | 33 | 6.00% | $180 | $333 | $53,221 |
| Washington | 34 | 6.50% | $199 | $73 | $53,228 |
| Idaho | 35 | 6.00% | $399 | $126 | $53,233 |
| Illinois | 36 | 6.25% | $347 | $151 | $53,330 |
| Minnesota | 37 | 6.88% | $125 | $69 | $53,338 |
| Massachusetts | 38 | 6.25% | $459 | $60 | $53,351 |
| Maryland | 39 | 6.00% | $499 | $187 | $53,394 |
| Indiana | 40 | 7.00% | $199 | $38 | $53,440 |
| Kansas | 41 | 6.50% | $499 | $80 | $53,535 |
| Arizona | 42 | 5.60% | $499 | $564 | $53,573 |
| Rhode Island | 43 | 7.00% | $399 | $58 | $53,660 |
| Connecticut | 44 | 6.35% | $599 | $180 | $53,660 |
| Nevada | 45 | 6.85% | $499 | $49 | $53,677 |
| Tennessee | 46 | 7.00% | $499 | $29 | $53,731 |
| California | 47 | 7.25% | $85 | $524 | $53,936 |
| New Jersey | 48 | 6.63% | $695 | $271 | $53,986 |
| Florida | 49 | 6.00% | $999 | $297 | $54,004 |
| Mississippi | 50 | 7.00% | $425 | $719 | $54,347 |
How to Save on Your Next Car Purchase
Whether you’re shopping for a new or used car in 2026, here are some smart ways to save:
- Compare prices in multiple states: If you live near a state with lower prices, buying there could be a no-brainer.
- You’ll pay sales tax to your home state: In most cases, you’ll be required to pay sales tax to the state you live in, even if you buy out of state. But don’t worry, you won’t be double-taxed. The dealership will handle all the paperwork for you.
- Negotiate fees: Some dealership fees can be negotiated, like Doc Fees in states with no cap.
- Consider leftover 2024 models: Dealers are eager to move last year’s inventory, which means big discounts.
- Use CarEdge Pro: Track real-time car price trends and get the best deal possible.
Stay Ahead of the Car Market in 2026
Buying a car this year? Knowing where to shop could save you thousands. Before heading to the dealership, make sure you’ve done your research and know what to expect. Stay on top of the latest car market trends, incentives, and deals with the free CarEdge Research Hub. Compare total cost of ownership, explore today’s best offers, and make the smartest car-buying decisions.
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