Are you an avid adventurer, bouncing from RV park to RV park? Are you looking to save money whilst you travel? Then purchase an RV!
Montana is the cheapest state to register an RV. But it doesn’t have to be the only state. Other states will have low RV sales tax and low insurance costs. This article will talk you through everything you need to know.
What are the best states to buy and register an RV?
It’s important to know that just because an RV is cheap, it doesn’t mean the costs remain low once you add on extra fees, such as insurance costs, registration fees, and local taxes.
The cheapest place to register an RV is Montana. This is because the state allows 0% county sales tax and 0% general sales tax, and there are no personal property taxes that would have otherwise bumped up the price of your RV.
What state has the best prices on RVs?
Arizona, Florida, and Texas are the cheapest states to buy an RV. It’s common for RVs to get sold in these states for a reduced price because it’s hard to keep an RV cool in the hot weather. Texas and Florida also have no income tax.
Unfortunately, it’s not as simple as traveling to a state and handing over your credit card. If your home state is miles away from the state to buy, then the cost of gas is going to outweigh the money you save.
What to consider when buying an RV from another state
Taxes on an RV purchase
The state that you register your RV in may have a large sales tax, county tax, and even wheel tax. You’ll also be charged for the license plate that your RV requires.
Unfortunately, that’s not all, as some states also require a personal property tax.
What states don’t have sales tax on RVs?
If you want to avoid paying the pesky sales tax on your RV, then think about buying and registering it in the same place.
States like Montana, New Hampshire, Delaware, Alaska, and Oregon don’t have a general sales tax.
The season you purchase
As mentioned before, Arizona, Florida, and Texas sell a lot of cheap RVs in the summertime.
If you’re too far away from these hot states, then you’re still in luck because the retail value is lower in the fall for colder states.
The savings vs the travel
It’s important to mention this again.
Work out how much it’s going to cost you to get there, how much it will cost you to take the RV home, and also how much it’ll cost to register that RV to your home state.
The best deal might not mean the cheapest. You could be better off getting an RV from your home state or getting one delivered to a state closer by.
Insurance and registration fees
Your insurance company might not appreciate that you’ve purchased an RV from another state.
For example, if you register your state in Montana, you might have to add cover for your Montana LLC on your insurance policy.
Insurance rates might be low in one state, but high in other tax expenses. South Dakota has the best deals in RV insurance and has a low sales tax.
Change your domicile state
Full-time RVers might want to consider your registered RV state as a new primary residence. So, why not move? Your permanent address could save you thousands in your RV lifestyle.
In Montana, if your RV lasts more than 11 years then you could get a permanent tag, meaning you can avoid annual fees.
Your first choice should be a state with zero percent tax on dividend income, which should then lower your tax expenses altogether.
Best state to buy a motorhome by category?
Best state to buy a class A RV
A class A RV can be expensive. To save as much money as you can, you’ll want to purchase an RV in a state that has a low sales tax. This could be in New Hampshire, Delaware, Alaska, Montana, or Oregon.
However, class A vans are huge vehicles. This means it will cost a lot for gas. So if your address is far away from the RV’s location, then you should choose somewhere closer, even if the sales taxes are higher.
Best state to buy a class B RV
A class B RV is similar to a van. This means they’re easier to drive, park, and cheaper to run. Because of this, you can pay sales tax in a cheaper state without worrying about the price of fuel.
Best state to buy a class C RV
South Dakota just before winter could save you a lot of money on a class C RV. It could also be worth moving here for its low insurance rates, no personal property tax, and income tax.
Best state to buy a used RV
Florida and Texas are great for buying used RVs because a lot of people sell them for cheap bin the summer. States like Montana are great in the fall. You should consider changing your address and permanently moving to save some money on your overall price.
Which state sells the most RVs?
The most RVs sold in states are Indiana, California, and Texas. This is because Indiana is the home of many large RV headquarters.
RV registration fees by state
- Alabama: RV registration cost in Alabama is based on the weight of the vehicle. Expect to pay around $73 annually.
- Alaska: The base fee for a motorhome is $100. The base fee for a trailer is $30.
- Arizona: The registration fee is $13.50 but you’ll also need vehicle license tax on top of that. Price will vary depending on the RV’s value.
- Arkansas: This is based on the RV’s weight and its make. For RV’s under 3,000 pounds, it’s $17. Between 3,001 and 4,500 pounds, it’s $25, and $30 for anything over.
- California: Registration fees for California aren’t straightforward, and we cannot provide an average. Your home, vehicle type, price, and weight are all factors of your final registration fee.
- Colorado: Similar to California, registration fees depend on the county you live in, vehicle type, price, and weight.
- Connecticut: $112.50 registration fee for motorhomes and $28.50 for trailers. But it doesn’t stop here. There are tons of other fees added to this.
- Delaware: They are based on the weight and type of vehicle. It’s $40 to register an RV under 5,000 pounds and $6.40 for every 1000 pounds more.
- Florida: The registration fee is $225. A license plate is $28. Then there’ll be more fees on top of this, depending on weight and type.
- Georgia: There is more than one fee to pay. $18 for title application. The same goes for the title ad valorem tax.
- Hawaii: Your home, vehicle type, price, and weight are all factors of your final registration fee.
- Idaho: The final price of registration will depend on the market value.
- Illinois: Ranges from $78 to $102 plus extra fees.
- Indiana: $29.35 plus extra fees.
- Iowa: The registration fee will depend on the class of the RV. It could be as little as $80 and as high as $400.
- Kansas: The final price will depend on where you live.
- Kentucky: The final price will depend on where you live.
- Louisiana: Usually a $50 registration fee, dependent on the value and type of the RV. Plus, there will be added fees.
- Maine: Start at $21 but goes up based on weight and type.
- Maryland: Under 3,700 pounds it’s $135.
- Massachusetts: $50 depending on type and weight.
- Michigan: Depends on market price.
- Minnesota: $15.50 plus extras.
- Mississippi: $12.75 plus extras.
- Missouri: $32.25 plus extras.
- Montana: Dependent on age. $282.50 less than 2 years old. 11 years or older is a permanent registration.
- Nebraska: $23.80 plus extras.
- Nevada: $33 plus extras.
- New Hampshire: Based on weight.
- New Jersey: Range between $35.50 and $84.00
- New Mexico: Range between $27 and $124, dependent on age and weight.
- New York: Based on weight and residency.
- North Carolina: Based on weight and residency.
- North Dakota: Based on age and weight.
- Ohio: $46 plus extras.
- Oklahoma: $96 plus extras.
- Oregon: based on type and age.
- Pennsylvania: Based on weight.
- Rhode Island: Based on weight.
- South Carolina: $40 plus extras.
- South Dakota: based on age and weight.
- Tennessee: $26.50 plus extras.
- Texas: $51.75 plus extras.
- Utah: Based on type, weight, and age.
- Vermont: Based on the type.
- Virginia: $30.75-$35.75.
- Washington DC: Based on the type and weight.
- West Virginia: $76.50 plus extras.
- Wisconsin: Based on weight and type.
- Wyoming: Based on type and value.