Buying an RV is a big expense, no matter how you look at it. A brand new class A will set you back somewhere between $50,000 and $200,000, and even a used class C from the Clinton era can run $10,000. Then there are all the incidental costs: insurance, maintenance, campground fees, fuel, and the inevitable roadside repair. Though what many prospective RV owners forget in that big mess of expenses — taxes.
Like any big purchase you make, the government is going to want its cut. Unfortunately for RV owners, there is a multitude of taxes that must be paid to keep your vehicle street-legal. We’ll want you through the most common RV taxes by state, which should give you a ballpark figure for the cost of RV ownership in your area.
Types of RV Taxes
Owning an RV can be the ticket to freedom and a lifetime of memorable experiences, but before you can enjoy those benefits, you need to pay the tax bill. We’ll start by covering the most common tax categories, but be sure to consult your local DMV for a comprehensive list of taxes in your county and specific RV model.
Sales Tax
This is the most significant tax you’ll pay when purchasing an RV because it’ll all be owed upfront. If you buy from a dealer and get financing, the sales tax will be rolled into the final price and loan. Should you pay cash for a used RV, know that you’ll owe the sales tax as soon as you register the vehicle.
Don’t assume you can avoid this tax by buying in one of the half-dozen states that don’t charge sales tax either. The tax you pay is based on where the vehicle is registered.
Property Tax
Many drivers are confused by the idea of paying a property tax on their vehicle because it’s usually rolled into the cost of registration. We’ve listed the RV property taxes by state, which are usually based on the vehicle's value, but there are some idiosyncrasies in certain counties or with particular RV models that could raise your tax bill beyond what’s shown here.
Registration Fees
Just like any other vehicle, an RV needs to be registered with the state’s DMV. Some states charge a flat registration fee to all non-commercial vehicles, while others have a tiered tax system based on the vehicle's weight, age, and sometimes its value. A few states forgo the registration fee entirely if the vehicle is old enough.
Local Taxes
Cities and counties can set their own sales and property tax rates separate from the state. Counties can also tack on extra fees for things like law enforcement, titling, and clerk costs. Local RV property taxes by state are too numerous to mention here but know that the cost of buying and registering your RV might be slightly higher as a result.
RV Taxes by State
Every state has its own unique tax systems based on the citizenry’s preferences, political wrangling, or just plain randomness. A state might have 0% sales taxes but a high annual registration fee and property taxes. While you’d save money upfront, there’ll be an onerous tax bill every year for the life of the vehicle.
Let’s take a look at how each state fares on the tax continuum.
Alabama
Registration: No registration is required on vehicles more than 35 years old. For new vehicles, the fee is based on weight, starting at $23 for vehicles under 8,000 pounds and going up to $300 for the heaviest class A RVs. Travel trailers pay a flat $12 registration fee.
Alaska
Sales: 0%. Some cities in Alaska do charge a local sales tax, but the only RV dealerships in the state are located in Anchorage, which does not have a local tax.
Registration: Alaska charges a flat $100 registration fee plus anywhere between $70 and $150, depending on the age of the RV. Not bad, considering the lack of sales and property tax.
Arizona
Registration: The fee is based on the assessed value of the vehicle - $2.80 for every $100 of assessed value.
Arkansas
Registration: Fees are weight-based, but almost any RV will be in the top weight tier of 4,500 lbs and above, which will cost $32.50.
