The Cheapest Autos to Tax in the United States
Various taxes apply to autos driven in the United
States, and it is through
car reviews that you can spot which models
attract less tax.
A registration fee must be paid every year in every state to fund the
maintenance of public roads. The fee varies according to the type of
vehicle. In some states, electric vehicles attract a lower fee.
There are sales taxes in 45 states which apply to autos, which can be
less than three percent or more than eight percent, with a national
average of 5.75 percent. Some counties, municipalities, and even
school districts also have a sales tax. As any Mazda 3 review will
tell you, this auto is cheap, and you will make savings when you pay
sales tax and even more on insurance. In some states, you can reduce
the amount you pay by trading in a vehicle.
Vehicles weighing more than 55,000 pounds are subject to a federal
highway use tax, which encompasses buses, truck tractors, and trucks.
This tax does not apply to vehicles used for 5,000 miles or less on
public highways, or 7,500 miles or less in the case of agricultural
Gas guzzling passenger autos that fall short of fuel economy standards
have been subject to extra tax since 1978. This ranges from $1,000 for
vehicles achieving 21.5 miles per gallon (mpg) of gas to $7,700 for
those that achieve only 12.5mpg. The extra tax is paid by
manufacturers and importers of vehicles and passed on to consumers. It
does not apply to used autos. An executive order passed by the Obama
administration will make such autos extinct by 2025. No longer will
you be able to have your eyeballs thrust back into your skull in your
Ford Shelby Mustang, but $1.7 trillion less will be spent on fuel and
greenhouse gas emissions will be reduced.
There are tax credits for electric vehicles of $2,500 to $7,500. A
good auto dealership will say which vehicles qualify, while the Energy
Department provides a list at its website. The size of the credit
depends on the size of the auto's battery, with hybrid Chevy Volts
receiving the maximum amount. Electric cars currently available are
the Ford Focus, Nissan Leaf, Mitsubishi I, Coda sedan, and Wheego
Life. There are many state and regional incentives.
There is a tax credit for conversion to electrical power of 10 percent
of the cost of the exercise, with a maximum of $4,000. Diesel vehicles
might be eligible for a tax credit of as much as $3,400. Credits are
phased out for manufacturers when they sell 60,000 hybrid or diesel
vehicles, as occurred with Honda due to the Insight. Vehicles
purchased after 31 December 2010 are ineligible.
SUVs used for business purposes and weighing more than 6,000 pounds
but less than 14,000 pounds receive tax deductions. If the SUV is used
for recreation, the deduction is reduced by that percentage.
Kluger review will tell you that not all SUVs attract high tax
fee. Indeed, the insurance and tax costs for this car are quite
reasonable for a vehicle in this segment.
A federal tax credit of $4,000 for natural gas-powered autos expired
on 31 December 2011, although natural gas proponents seek to have it
reinstated. Credits for conventional hybrids and clean diesels such as
the Toyota Prius and Honda Civic ended with 2010. Such vehicles do not
have batteries which can be connected to the power grid.
Good news was received by U.S. drivers when the federal luxury car tax
was abolished in 2002. The tax had diminished gradually since its
introduction in 1990, and was only four percent by 2002. It was not
renewed by Congress due to its unpopularity with consumers and