South Dakotans Get a Sweet Deal When Buying a Car

carlicensingMojo Motors recently published a study comparing taxes and registration and dealer fees you pay when buying a car. South Dakota ranked among the 10 least expensive states to purchase a vehicle.

In every other state that has a sales tax you pay the full state and local sales tax on the purchase price of the car. In South Dakota you do not pay sales tax on a new car. Instead you pay a 3% motor vehicle excise tax. And, in most states you pay personal property tax – each and every year you license the car. South Dakota doesn’t even have a personal property tax. Taken together these tax benefits save South Dakota car owners thousands of dollars over the life of a car.

We compared vehicle tax and licensing costs between Sioux Falls, SD and Omaha, NE on a new 2014 Chevy Impala that cost $25,000:

carlicgraphicWhile none of us like to pay the tax and licensing costs on vehicles, it is a whole lot less expensive in South Dakota than most states.

Source: Mojo Motors



Categories: Rankings, Taxes

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