Check Rental Car Taxes and Fees by State Before Your Next Trip

Rental car rates aren’t the total cost of renting a car. Along with various surcharges and fees levied by your car rental company, the state and county also take their share. In many states, rental car taxes aren’t just a single fee. Several percentages and daily fees come into play. Also consider how much extra you’ll pay for gasoline in different parts of America. Different states have different gas taxes. Along with that, different towns, counties, and cities have different tax rules. You can find more info about sales tax on rental cars in California and the other 49 states in this article. Skip to the end for a current spreadsheet of rental car taxes by state.

Sales Tax on Rental Cars in California

sales tax on rental cars in california

Compared to other states, the sales tax on renting a car in California is surprisingly low. Naturally there’s a 7.25% state tax, but there’s no specific surcharge for renting a car. However, you’ll have to pay a 3.5% tourism fee. Not many people know that the type of car rental company you use also changes the fees and surcharges. If you rent a car from an airport kiosk, you’ll have to contend with an airport fee and an extra off-site rental expense.

Renting from a local business instead of a large company could also save you a lot of money on surcharges. Corporate car rental chains tend to tack on more fees than family-run businesses. Large chains also make it harder to rent if you’re under the age of 25, have bad credit, or want to rent with cash.

The Three States With the Highest Car Rental Taxes and Fees

If you though rental fees and sales tax was high in California, you’d be shocked by Minnesota, Maryland, and Nevada. These states have the highest car rental taxes in America. At number one, Minnesota appends an eye-watering 21.63% in taxes onto your rental bill. This includes a 9.2% tax, a 5% fee, a 6.875% state sales tax, and whatever local counties want to throw in. The average combined rate for local counties is 7.43%.

Coming in at number 2, Maryland charges 17.5% in taxes and fees whenever you rent a car. While their sales taxes is only 6%, they tack on an extra 11.5% surcharge. Finally, Nevada charges up to 16.85% in taxes for rental cars. That includes a 10% surcharge, a 6.85% state sales tax in Clark and Washoe counties, and then an additional 2% charge.

Rental Car Tax and Gas Tax by State

Check out our handy list of rental car taxes and gasoline taxes per state. It’s got everything you need to know about sales tax on rental cars in California and other states.

State Rental Car Taxes Gasoline Tax per gallon
Arizona 5.60% $0.19
Alaska 10% $0.15
Alabama 1.5%+4% $0.21
Arkansas 10%+6.5% $0.22
Connecticut 3%+9.3%+$1/day tourist fee $0.44
Colorado 2.9%+$2/day rental fee $0.22
California 7.25%-9.5% $0.56
Florida 6%+$2/day $0.41
Delaware 2% $0.23
Dis. Columbia 10.25%+5.75% $0.24
Hawaii $3/day $0.48
Georgia 4% $0.31
Idaho 6% $0.33
Iowa 5%+6% $0.31
Indiana 4%+7% $0.42
Illinois 5% $0.34
Kansas 4%+8.68% $0.24
Kentucky 6% $0.26
Louisiana 4.45%+9.45% $0.20
Maryland 11.50% $0.35
Maine 10% $0.3%
Michigan 6%+6% $0.41
Massachusetts 6.25%+$2 state fee $0.27
Mississippi 6%+5% $0.22
Minnesota 9.2%+7.43% $0.29
Montana 4%+4% $0.32
Missouri 4% $0.17
Nevada 10%+6.85% $0.34
Nebraska 4.5%+6.89% $0.28
New Jersey $5/day $0.41
New Mexico 5%+$2/day $0.19
New Hampshire 9% $0.24
New York 6% $0.46
North Carolina 8%+6.95% $0.35
North Dakota 3%+6.83% $0.23
Oklahoma 6%+8.93% $0.17
Ohio 5.75%+7.15% $0.28
Oregon 17% in Multnomah County only $0.37
Pennsylvania 2%+$2/day $0.59
Rhode Island 8%+7% $0.34
South Dakota 4.5%+1.5% $0.30
South Carolina 5%+7.43% $0.21
Texas 10% $0.20
Tennessee 3%+9.46% $0.26
Utah 2.5%+7.5% $0.29
Vermont 9% $0.32
Virginia 10% $0.21
Washington 5.90% $0.49
West Virginia 6%+6.38%+$1/day state charge $0.36
Wisconsin 5%+3% $0.33
Wyoming 4% $0.24

Disclaimer: This is not an official list. All taxes and surcharges are subject to change at the town, county, state, and federal levels. When renting a car, be sure to confirm all taxes and surcharges with your rental car provider.

Renting a Car in Los Angeles Soon?

At Value Rental Car we want to help you get to your destination quickly and safely. We offer clean and affordable rental cars for local driving in LA, with complimentary pickup and drop off at LAX. If you’re a college student, we want to help you get on the road. We rent to drivers under the age of 21, and we offer cash and debit card car rentals. Let us know what we can do to help.