Last Updated on September 1, 2021 by Elizabeth
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. Minnesota: Estimated taxes and fees: 21.63%. Rental cars: 9.2% tax plus a 5% fee. There’s a 6.875% state sales tax plus localities can add as much as 2%, for an average combined rate of 7.43%.
2. Maryland Estimated taxes and fees: 17.5%. Rental cars: 11.5% surcharge plus 6% sales tax.
3. Nevada: Estimated taxes and fees: 16.85%. 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%.
4. Arkansas: Estimated taxes and fees: 16.5%. Rental cars: 10% surcharge plus 6.5% sales tax.
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5. Texas Estimated taxes and fees: 16.25%. Rental cars: 10% rental car surcharge plus 6.25% sales tax.
6. District of Columbia: Estimated taxes and fees: 16.25%. Rental cars: 10.25% surcharge on rental cars plus 6% sales tax.
7. North Carolina Estimated taxes and fees: 16%. Rental cars: 8% surcharge. There’s also a 5.25% state tax plus localities can add as much as 2.75%, for an average combined rate of 8%.
8. Virginia Estimated taxes and fees: 15.3%. Rental cars: 10% surcharge plus 5.3% sales tax.
9. Vermont Estimated taxes and fees: 15%/ Rental cars: 9% surcharge plus 6% sales tax.
10. Rhode Island: Estimated taxes and fees: 15%. Rental cars: 8% surcharge plus 7% state sales tax.
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: $0.18 per gallon.
Alaska
Rental cars: 10% statewide surcharge.
Gasoline Tax: $0.08 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: $0.18 per gallon.
Arkansas
Rental cars: 10% surcharge plus 6.5% sales tax.
Gasoline Tax: $0.25 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: $0.47 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: No state surcharge. 6.35% sales tax, plus a $1 per day “tourism surcharge” is also levied.
Gasoline Tax: $0.44 per gallon.
Delaware
Rental Cars: 1.99% state surcharge.
Gasoline Tax: $0.23 per gallon.
District of Columbia
Rental cars: 10.25% surcharge on rental cars plus 6% sales tax.
Gasoline Tax: $0.24 per gallon.
Florida
Rental cars: $2-per-day surcharge, plus 6% sales tax.
Gasoline Tax: $0.42 per gallon (varies by county).
Georgia
Rental cars: No statewide tax, but localities may levy them; 4% sales tax is due.
Gasoline Tax: $0.35 per gallon.
Hawaii
Rental cars: $3 per day, plus excise tax. There is also a 4% sales 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 6.25% sales tax. Additional taxes may be levied by localities.
Gasoline Tax: $0.38 per gallon.
Indiana
Rental cars: 4% auto rental excise tax plus 7% sales tax. Marion County (Indianapolis) adds another 6%.
Gasoline Tax: $0.30.
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: $0.21 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 11.45%.
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 plus 6% sales tax.
Gasoline Tax: $0.37 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: $0.26 per gallon.
Minnesota
Rental cars: 9.2% tax plus a 5% fee. 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: $0.37 per gallon.
Missouri
Rental cars: 4% surcharge plus 4.225% sales tax.
Gasoline Tax: $0.17 per gallon.
Montana
Rental cars: 4% surcharge, but 0% state sales tax.
Gasoline Tax: $0.33 per gallon.
Nebraska
Rental cars: No statewide 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: $0.31 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: $0.48 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: $0.17 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 5.25% state tax plus localities can add as much as 2.75%, for an average combined rate of 8%.
Gasoline Tax: $0.35 per gallon.
North Dakota
Rental cars: 3% surcharge. There’s also a 4.75% 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: 0.39 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: $0.19 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 plus a 6% sales tax. 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: $0.22.
South Dakota
Rental cars: 4.5% excise tax as well as a 1.5% tourism tax, plus a 4.5% sales 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: $0.21 per gallon.
Texas
Rental cars: 10% rental car surcharge plus 6.25% sales tax.
Gasoline Tax: $0.20 per gallon.
Utah
Rental cars: 2.5% statewide tax plus 6.2% sales tax.
Gasoline Tax: $0.17 per gallon.
Vermont
Rental cars: 9% surcharge plus 6% sales tax.
Gasoline Tax: $0.32 per gallon.
Virginia
Rental cars: 10% surcharge plus 5.3% sales tax.
Gasoline Tax: $0.16 per gallon.
Washington
Rental cars: 5.9% statewide tax on rental cars plus 6.5% sales tax. 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-$1.50 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: Statewide surcharge of 5% plus 5% sales tax plus localities can add more. For example, Milwaukee charges an additional 3%.
Gasoline Tax: $0.33 per gallon.
Wyoming
Rental cars: 4% surcharge plus 6% sales tax.
Gasoline Tax: $0.24 per gallon.
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