rental car taxes by state

Worried about the hidden costs of renting a car? Your final bill will include your rental rate plus taxes and fees, which can vary enormously depending on where you are picking up the car.

More than 40 states impose fees on rental cars, either through an additional tax, fee, or both. At least 15 states allow local governments to impose their own taxes or fees and rental car companies also charge extra for off-site rentals, airport fees, insurance coverage and more.

 

10 States With the Highest Rental Car Taxes and Fees

 

1. Nevada: Estimated taxes and fees: 16.85%-$18.85%

Rental cars: 10% surcharge. There's also a 6.85% state sales tax and Clark and Washoe counties (home to Las Vegas and Reno, respectively) charge an additional 2%.

2. Minnesota: Estimated taxes and fees: 16.63%

Rental cars: 9.2% surcharge. There's a 6.875% state sales tax plus localities can add as much as 2%, for an average combined rate of 7.43%.

3. Arkansas: Estimated taxes and fees: 16.5%

Rental cars: 10% surcharge plus 6.5% sales tax.

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4. District of Columbia: Estimated taxes and fees: 16%

Rental cars: 10.25% surcharge on rental cars plus 5.75% sales tax.

5. Rhode Island: Estimated taxes and fees: 15%

Rental cars: 8% surcharge plus 7% state sales tax.

6. North Carolina: Estimated taxes and fees: 14.95%

Rental cars: 8% surcharge. There's also a 4.75% state tax plus localities can add as much as 2.75%, for an average combined rate of 6.95%.

7. Tennessee: Estimated taxes and fees: 12.46%

Rental cars: 3% surcharge. There's also a 7% state sales tax plus localities can add up to 2.75%, for an average combined rate of 9.46%.

8. South Carolina: Estimated taxes and fees: 12.43%

Rental cars: 5% surcharge. There's also a 6% state sales tax plus localities can add as much as 3%, for an average combined rate of 7.43%.

9. Connecticut: Estimated taxes and fees: 12.35% + $1/day

Rental cars: 3% state surcharge on top of 9.35% sales tax. A $1 per day "tourism surcharge" is also levied.

10. Kansas: Estimated taxes and fees: 12.18%

Rental cars: 3.5% surcharge. There's a 6.5% state sales tax plus localities can add as much as 4%, for an average combined rate of 8.68%.

 

Rental Car Taxes and Fees by State

 

Alabama

Rental cars: 1.5% surcharge in addition to local taxes. 4% sales tax is also due.
Gasoline Tax: $0.21 per gallon.

Alaska

Rental cars: 10% statewide surcharge.
Gasoline Tax: $0.15 per gallon.

Arizona

Rental cars: No state surcharge, but some counties levy their own. (For example, Pima County adds $3.50 per rental; Maricopa County adds $2.50 or 3.25%, whichever is greater.) 5.6% sales tax is also due.
Gasoline Tax: $0.19 per gallon.

Arkansas

Rental cars: 10% surcharge plus 6.5% sales tax.
Gasoline Tax: $0.22 per gallon.

California

Rental cars: No statewide surcharge, but localities may levy them. 7.25% sales tax in many localities. In Los Angeles, the local sales tax rate is 9.5%.
Gasoline Tax: $0.56 per gallon.

Colorado

Rental cars: $2 per day rental fee. Localities can add their own surcharge; Denver adds 7.25%. 2.9% sales tax is also due.
Gasoline Tax: $0.22 per gallon.

Connecticut

Rental cars: 3% state surcharge on top of 9.35% sales tax. A $1 per day "tourism surcharge" is also levied.
Gasoline Tax: $0.44 per gallon.

Delaware

Rental Cars: 2% state surcharge.
Gasoline Tax: $0.23 per gallon.

District of Columbia

Rental cars: 10.25% surcharge on rental cars plus 5.75% sales tax.
Gasoline Tax: $0.24 per gallon.

Florida

Rental cars: $2-per-day surcharge, plus 6% sales tax.
Gasoline Tax: $0.41 per gallon (varies by county).

Georgia

Rental cars: No statewide tax, but localities may levy them; 4% sales tax is due.
Gasoline Tax: $0.31 per gallon.

Hawaii

Rental cars: $3 per day, plus excise tax.
Gasoline Tax: $0.48 per gallon (varies by county).

Idaho

Rental cars: No statewide tax but there's a 6% sales tax due.
Gasoline Tax: $0.33 per gallon.

Illinois

Rental cars: 5% surcharge, with additional taxes levied by localities.
Gasoline Tax: $0.34 per gallon.

Indiana

Rental cars: 4% auto rental excise tax plus 7% sales tax. Marion County (Indianapolis) adds another 6%.
Gasoline Tax: $0.42.

Iowa

Rental cars: 5% surcharge. There's a 6% state sales tax plus localities can add as much as 1%, for an average combined rate of 6.82%.
Gasoline Tax: $0.31 per gallon.

Kansas

Rental cars: 3.5% surcharge. There's a 6.5% state sales tax plus localities can add as much as 4%, for an average combined rate of 8.68%.
Gasoline Tax: $0.24 per gallon.

Kentucky

Rental cars: 6% "U Drive It" tax. No sales tax on rental cars.
Gasoline Tax: $0.26 per gallon.

Louisiana

Rental cars: No specific rental car surcharge but there's a 4.45% state sales tax plus localities can add as much as 7%, for an average combined rate of 9.45%.
Gasoline Tax: $0.20 per gallon.

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Maine

Rental cars: 10% state surcharge in lieu of sales tax.
Gasoline Tax: $0.30 per gallon.

Maryland

Rental cars: 11.5% surcharge. No additional sales tax.
Gasoline Tax: $0.35 per gallon.

Massachusetts

Rental cars: $2 statewide surcharge. In addition, Boston collects a $10 fee per rental to fund a convention center. Also, renters pay a 6.25% state sales tax.
Gasoline Tax: $0.27 per gallon.

Michigan

Rental cars: 6% surcharge plus 6% state sales tax. Also, the Detroit area imposes a 2% tax to help fund a stadium.
Gasoline Tax: $0.41 per gallon.

Minnesota

Rental cars: 9.2% surcharge. There's a 6.875% state sales tax plus localities can add as much as 2%, for an average combined rate of 7.43%.
Gasoline Tax: $0.29 per gallon.

Mississippi

Rental cars: 6% surcharge, plus 5% state sales tax (which is 2% below the general sales tax).
Gasoline Tax: $0.19-$0.22 per gallon, depending on the county.

Missouri

Rental cars: 4% surcharge.
Gasoline Tax: $0.17 per gallon.

Montana

Rental cars: 4% surcharge plus 4% state sales tax.
Gasoline Tax: $0.32 per gallon.

Nebraska

Rental cars: 4.5% surcharge. There's also a 5.5% sales tax plus localities can add as much as 2.0%, for an average combined rate of 6.89%.
Gasoline Tax: $0.28 per gallon.

Nevada

Rental cars: 10% surcharge. There's also a 6.85% state sales tax and Clark and Washoe counties (home to Las Vegas and Reno, respectively) charge an additional 2%.
Gasoline Tax: $0.34 per gallon.

New Hampshire

Rental cars: 9% surcharge, but no sales tax.
Gasoline Tax: $0.24 per gallon.

New Jersey

Rental cars: Flat $5 per day "domestic security fee" on rental cars. There's a 6.625% state sales tax, plus some municipalities (including Newark) add another 5% tax.
Gasoline Tax: $0.41 per gallon.

New Mexico

Rental cars: 5% surcharge plus $2 per day. There's also a 5.125% state tax and localities can add as much as 4.13%, for an average combined rate of 7.78%.
Gasoline Tax: $0.19 per gallon.

New York

Rental cars: 6% rental car tax, plus the New York City metro area adds another 5%.
Gasoline Tax: $0.46 per gallon (varies by county)

North Carolina

Rental cars: 8% surcharge. There's also a 4.75% state tax plus localities can add as much as 2.75%, for an average combined rate of 6.95%.
Gasoline Tax: $0.35 per gallon.

North Dakota

Rental cars: 3% surcharge. There's also a 5% state tax plus localities can add as much as 3.5%, for an average combined rate of 6.83%. Three cities (Bismarck, Grand Forks, and Minot) add an additional 1% tax on car rentals at the airport.
Gasoline Tax: $0.23 per gallon.

Ohio

Rental cars: No rental car surcharge. There's a 5.75% state tax plus localities can add as much as 2.25%, for an average combined rate of 7.15%.
Gasoline Tax: 0.28 per gallon.

Oklahoma

Rental cars: 6% surcharge. There's also a 4.5% state tax plus localities can add as much as 6.5%, for an average combined rate of 8.93%.
Gasoline Tax: $0.17 per gallon.

Oregon

Rental cars: No statewide surcharge or sales tax, but Multnomah County (including Portland) imposes a 17% tax.
Gasoline Tax: $0.37 per gallon.

Pennsylvania

Rental cars: 2% surcharge plus $2 per day. Philadelphia adds an additional 2%.
Gasoline Tax: $0.59 per gallon.

Rhode Island

Rental cars: 8% surcharge plus 7% state sales tax.
Gasoline Tax: $0.34 per gallon.

South Carolina

Rental cars: 5% surcharge. There's also a 6% state sales tax plus localities can add as much as 3%, for an average combined rate of 7.43%.
Gasoline Tax: $0.21.

South Dakota

Rental cars: 4.5% excise tax as well as a 1.5% tourism tax.
Gasoline Tax: $0.30 per gallon.

Tennessee

Rental cars: 3% surcharge. There's also a 7% state sales tax plus localities can add up to 2.75%, for an average combined rate of 9.46%.
Gasoline Tax: $0.26 per gallon.

Texas

Rental cars: 10% rental car surcharge.
Gasoline Tax: $0.20 per gallon.

Utah

Rental cars: 2.5% statewide tax. Counties can add up to 7%.
Gasoline Tax: $0.29 per gallon.

Vermont

Rental cars: 9% surcharge.
Gasoline Tax: $0.32 per gallon.

Virginia

Rental cars: 10% surcharge. No state sales tax on rental cars.
Gasoline Tax: $0.21 per gallon.

Washington

Rental cars: 5.9% statewide tax on rental cars. Franklin, Pierce, King and Spokane Counties add 1%. There's an additional 0.8% transit-authority tax in Pierce, King and Snohomish Counties.
Gasoline Tax: $0.49 per gallon.

West Virginia

Rental cars: Statewide surcharge of $1 per day. There's also a state sales tax of 6% plus localities can add up to 1%, for an average combined rate of 6.38%.
Gasoline Tax: $0.36 per gallon.

Wisconsin

Rental cars: State tax on rental cars is 5% plus localities can add more. For example, Milwaukee charges an additional 3%.
Gasoline Tax: $0.33 per gallon.

Wyoming

Rental cars: 4% surcharge.
Gasoline Tax: $0.24 per gallon.

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