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\n <\/source><\/source><\/picture>\n Sensay\/Shutterstock<\/span>\n <\/div>\n
We’ve all experienced sticker shock \u2014 that sinking feeling in your stomach when you realize that something is much more expensive than you anticipated. Perhaps you misread the menu when you ordered that bottle of wine, or you received the bill in the mail from your last dental visit! If it feels like everything is getting more expensive recently, well, you’re not wrong. According to NerdWallet<\/a>, average prices have increased more than 26% since 2019, and the inflation rate on some goods is even higher.<\/p>\n Early this year, the average price of a new car hit $49,000. Automakers have a plan<\/a>\u00a0to help you get into a new car, but the final price you’ll pay for any vehicle varies from state to state. That’s because each state sets its own sales tax rate. If you’re lucky enough to live in Delaware, Oregon, Alaska, New Hampshire, or Montana, you won’t pay any sales tax when you purchase a car. You’ll pay that sales tax in the other 45 states, however, and one state stands out with a rate higher than any other.\u00a0<\/p>\n It’s not California, where you’ll pay record-high prices for gas, or Hawaii, considered by many as the most expensive state to live in. Residents of one midwestern state pay higher sales tax on cars than any other: Kansas. Buyers in Kansas pay 7.5% in sales tax when they buy a vehicle. California is a close second, with a tax rate of 7.25%, then Georgia, Indiana, Rhode Island, and Tennessee share third place, charging 7%.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n
<\/p>\n A tax rate of 7.5% has the potential to add thousands to your car purchase. According to Kelley Blue Book<\/a>, there are no longer any new vehicles for sale in the U.S. for under $20,000. The least expensive new car on the market in 2026<\/a> is the Hyundai Venue, which has a starting MSRP of $20,550. If you purchased that vehicle in Kansas, the 7.5% tax rate adds more than $1,500 to the final price. If your new car costs $30,000, sales tax would be more than $2,200.<\/p>\n Sales tax isn’t the only factor that increases the final price you pay. You may have a bit of negotiating power on the sales price, but if you’re financing your purchase, you’ll want to shop around for the best interest rate on your loan. The dealership may also try to sell you extra warranties, features, or services, and those can add up fast. You’ll also likely pay title and registration fees, documentation fees, and perhaps even a fee to transfer your license plate. Your insurance payment will also change, and likely increase if you’re trading in an older car for a brand new one.<\/p>\n To determine exactly what you can afford, do your research on your state’s sales tax rate and additional fees. You can call your insurance company to get a quote on a new car, and it’s always a good idea to shop around yourself for the best loan, rather than relying on the dealership to do the research for you.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n
Taxes and other considerations<\/h2>\n
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\n <\/source><\/source><\/picture>\n Doidam 10\/Shutterstock<\/span>\n <\/div>\n
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