Each trip is associated with a waste of money, especially if it’s a trip to the USA. Therefore, budget planning is a fundamental element of a successful vacation – likely, nobody wants to spend too much money without getting the desired pleasure.
What are the major components of tourist spending? They include visa preparation, plane tickets, accommodation, food, sightseeing, and transportation. It’s not a secret that many tourists are accustomed to travel around the United States in a rental auto. This is very convenient in terms of movement since it’s possible to be free from public transportation schedules. Also, it doesn’t break your budget, because the average price for car hire in the US is about $20-40/day.
Unfortunately, a significant part of the final price is occupied by car rental taxes and fees by state. What is the exact proportion of these extra charges in the total rental price?
Table of content:
Rental car taxes and fees by state
Different rental auto taxes in each state means that you pay a different price for a car, even if you pick up the same model from the same company. The amount of the additional fee is regulated not only at the legislative level but also by the companies themselves – they include airport taxes, insurance, and other hidden options. For a quick comparison, check out the table of rental auto taxes by state:
| State | Car Hire Surcharge | Fuel Tax per gallon | State | Car Hire Surcharge | Fuel Tax per gallon |
| Arizona | 5.6% | $0.19 | Montana | 4%+4% | $0.32 |
| Alaska | 10% | $0.15 | Missouri | 4% | $0.17 |
| Alabama | 1.5%+4% | $0.21 | Nevada | 10%+6.85% | $0.34 |
| Arkansas | 10%+6.5% | $0.22 | Nebraska | 4.5%+6.89% | $0.28 |
| Connecticut | 3%+9.3%+$1/day tourist fee | $0.44 | New Jersey | $5/day | $0.41 |
| Colorado | 2.9%+$2/day rental fee | $0.22 | New Mexico | 5%+$2/day | $0.19 |
| California | 7.25%-9.5% | $0.56 | New Hampshire | 9% | $0.24 |
| Florida | 6%+$2/day | $0.41 | New York | 6% | $0.46 |
| Delaware | 2% | $0.23 | North Carolina | 8%+6.95% | $0.35 |
| Dis. Columbia | 10.25%+5.75% | $0.24 | North Dakota | 3%+6.83% | $0.23 |
| Hawaii | $3/day | $0.48 | Oklahoma | 6%+8.93% | $0.17 |
| Georgia | 4% | $0.31 | Ohio | 5.75%+7.15% | $0.28 |
| Idaho | 6% | $0.33 | Oregon | 17% in Multnomah County only | $0.37 |
| Iowa | 5%+6% | $0.31 | Pennsylvania | 2%+$2/day | $0.59 |
| Indiana | 4%+7% | $0.42 | The Island of Rhode | 8%+7% | $0.34 |
| Illinois | 5% | $0.34 | South Dakota | 4.5%+1.5% | $0.30 |
| Kansas | 4%+8.68% | $0.24 | South Carolina | 5%+7.43% | $0.21 |
| Kentucky | 6% | $0.26 | Texas | 10% | $0.20 |
| Louisiana | 4.45%+9.45% | $0.20 | Tennessee | 3%+9.46% | $0.26 |
| Maryland | 11.5% | $0.35 | Utah | 2.5%+7.5% | $0.29 |
| Maine | 10% | $0.3% | Vermont | 9% | $0.32 |
| Michigan | 6%+6% | $0.41 | Virginia | 10% | $0.21 |
| Massachusetts | 6.25%+$2 state fee | $0.27 | Washington | 5.9% | $0.49 |
| Mississippi | 6%+5% | $0.22 | West Virginia | 6%+6.38%+$1/day state charge | $0.36 |
| Minnesota | 9.2%+7.43% | $0.29 | Wisconsin | 5%+3% | $0.33 |
| Wyoming | 4% | $0.24 |
States Providing the Highest Taxes and Fees
Obviously, each state has its own extra percentage rates in terms of car hire. However, why in some of them rental auto taxes are especially large?
The fact is that in these states local administration is authorized to set the number of additional fees at their own discretion. And if we add these taxes to the state fees, plus daily tourist charges, the total amount can reach almost 20% of the whole rental price.
Well, which states have the least profitable rental auto taxes and fees?
| State | Car Hire Surcharge | Average combined Rate | State Sales Tax | Additional charges may apply | Total Percentage |
| Nevada | 10% | – | 6.85% | 2% | 16.85%-18.85% |
| Minnesota | 9.2% | 7.43% | – | – | 16.63% |
| Arkansas | 10% | – | 6.5% | – | 16.5% |
| D. Columbia | 10.25% | – | 5.75% | – | 16% |
| Rhode Island | 8% | – | 7% | – | 15% |
| N. Carolina | 8% | 6.95% | – | – | 14.95% |
| Tennessee | 3% | 9.46% | – | – | 12.46% |
| S. Carolina | 5% | 7.43% | – | – | 12.43% |
| Connecticut | 3% | – | 9.35% | $1/day | 12.35%+$1/day |
| Kansas | 3.5% | 8.68% | – | – | 12.18% |
Recommendations on how to avoid high fees in the USA
Despite the rather high rental taxes plus fees, everyone who is going to rent a car in the USA can significantly reduce their spending. In order to do this, check out some useful guidelines that allow you to lower the price tag slightly:
- Avoid car hire at the airport
Airport charges are another item of expenditure for a car rental company. This means that it will be 100% included in the price of the car, and the rental itself will be more expensive than a similar one in the city location.
- Read the rental terms and conditions carefully
Sometimes, unscrupulous providers deliberately hide the real value of extra payments so that the total price of the car looks attractive. Thus, read carefully the terms of the rental, especially those parts that are written in small print.
- Choose the best location to start the trip
If you are going to have an interstate journey around the United States, which implies a long-term car hire, then it makes sense to choose a state and destination to pick up your car with the smallest rental car taxes. For this reason, see the first table of this article.
Road trip to the USA is always an unforgettable experience wherever you go, so don’t be afraid of extra charges applied when choosing to use rental cars. Often they don’t have a very strong effect on the final price, which means you won’t exceed the limit of your budget and will be fully satisfied with your vacation.
What other rental car fees can you face in the US?
When making a reservation, the total price includes additional car rental fees. Check what extra charges you might pay at the rental counter in the list below:
- Car rental tax. This payment is a location-specific state tax. Keep in mind that rental car taxes by state can range from 2% to 16.85% of the total booking cost.
- Airport fee. You pay this charge for the convenience of renting a car from an airport-based company.
- Location charge. The company can collect this fee if you pick up the car not in the office, but, for example, in a hotel or downtown location that is more convenient for you.
- Insurance fee. Typically, you pay a daily insurance fee for the basic coverage (usually collision and liability protection) included in the original price.
- Mileage fee. If your provider limits the mileage, you will pay extra for exceeding it. However, you don’t have to worry if you travel with unlimited miles booked in advance.
- Young/senior driver surcharge. If your age is below or above the standard set by the company, you pay a daily extra charge.
- Additional driver fee. The agency charges a daily fee for each authorized extra driver.
- Fuel charge. You make this payment if you buy fuel in advance and don’t have to pay for it when you return. If you return a vehicle with less gallons than stated in the company’s policy, you pay the cost of the missing fuel plus a refueling fee.
- One-way fee. This charge is applied if you intend to return the vehicle to a different location.
- Toll fee. When driving on toll highways, you will have to pay a set amount. This happens automatically upon completion of a trip.
- Early/late return fee. Companies apply an extra charge if you return the car earlier/later than the date and time specified in the agreement.