Two of the most often overlooked costs of owning a vehicle are fees and taxes. Fees encompass items such as state registrations, license plate/tag costs, and other periodic costs required to operate a vehicle on public roadways. In addition to these fees, taxes put an additional bite in the owner’s bank account. Depending on the state, these taxes can include a sales tax, excise tax, or even a tax based on the value of the vehicle, and can vary depending on a vehicle’s age, its weight, its fuel type, or even whether it is classified as a car or truck.
Although they aren’t frequently available, tax credits are sometimes provided at the federal level. The currently available hybrid tax credit is one example, and can reduce the overall tax burden for those purchasing a hybrid vehicle.
As part of Vincentric’s monthly calculation of vehicle ownership costs, we measure the costs of fees and taxes on over 2,000 vehicle configurations in all 50 states and DC. As can be seen in the our 2007 analysis for either the Toyota Camry, the Ford F-150, or the Audi A8, fees and taxes vary greatly by state, year of ownership, and type of vehicle. To more easily see how the fees and taxes differ by vehicle, a summary of all three vehicles can also be reviewed.
The various regulations and frequent legislative changes make the calculation of fees and taxes an extremely complex undertaking. Because Vincentric is committed to providing the auto industry with the most accurate, up-to-date cost of ownership data available, we are able to share the results of this knowledge with you. The Vincentric Fees and Taxes Calculator provides you the ability to estimate the cost of fees and taxes for a new vehicle, based on personal (non-business) use, in all fifty states or DC. The calculator includes those vehicles for which data is available currently being sold by new car dealers.
For business use, Vincentric Fleet Fees and Taxes Costs are also available to identify the fees and taxes burden of vehicles operated for business use. Contact Vincentric for additional details.
Read what Kiplinger's Personal Finance has to say about this topic.