Car ownership eats up a huge chunk of your budget between insurance, gas, maintenance and registration fees. But where you live makes a massive difference in how much you actually spend. A new study from National Business Capital ranked all 50 states on total car ownership costs, and the results show that geography determines whether you’re getting a deal or getting fleeced.
Here are the 10 states where driving costs you the least money in 2025, according to the study.
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Ohio Takes the Top Spot
Ohio jumped from second place last year to claim the No. 1 ranking for 2025. The state doesn’t lead in any single category, but it delivers strong performance across every metric that matters.
A typical used vehicle in Ohio sells for around $12,995, which ranks sixth nationally. Insurance premiums come in at seventh-best in the country, and the state keeps recurring fees and taxes low at fourth place.
Gas prices and road conditions both land right around the national average, so you won’t save big there but you won’t get hammered either.
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Indiana Climbs Four Spots
Indiana rocketed up from sixth place in 2024 to second this year. The state has the best road conditions in the U.S., with 97.4% of pavement in good shape. That means less wear on your suspension and fewer trips to the mechanic.
Insurance costs rank fifth nationally, and used cars average $13,741. Dealer documentation fees on new vehicles stay reasonable at seventh-best.
The main downside is gas prices, which sit on the expensive side of average.
Vermont Loses Its Crown
Last year’s champion fell to third place in 2025. Vermont’s used car prices crept up to a median of $14,995, making it less competitive than Ohio and Indiana.
The state still has advantages. Sales tax ranks ninth-lowest nationally, and dealer fees stay moderate. Road quality is excellent, with nearly 95% of roads in good condition.
Gas prices hurt Vermont drivers though, coming in significantly above the national average.
Delaware Has Remarkably Cheap Cars
Delaware stayed at fourth place from 2024. The state’s biggest advantage is used car prices. The median listing sits at just $7,995, the cheapest in the U.S. by far.
Delaware also charges zero sales tax on vehicle purchases, and recurring registration costs stay low. Those two factors make it incredibly cheap to get a car on the road.
The tradeoff is insurance. Delaware ranks 44th nationally for insurance costs, which can eat up thousands per year.
Wisconsin Moves Up Two Spots
Wisconsin climbed from seventh to fifth place. The state keeps costs modest across the board. Sales tax averages 6%, which ranks ninth-best.
Insurance premiums land at 10th nationally, and gas prices stay reasonable. Dealer documentation fees won’t shock you either.
Road conditions are the weak point. Nearly one in four Wisconsin roads needs repair, ranking 37th nationally.
Iowa Cracks the Top 10
After barely missing last year’s top 10, Iowa jumped to sixth place. Gas ranks ninth-cheapest in the country, and insurance comes in eighth.
Used vehicles average $17,315, which sits just below the national average. New car dealer fees stay under $200 typically. Road quality is solid at 91.3% in acceptable condition.
Registration fees hurt Iowa’s ranking though, including a weight-based tax that can add hundreds annually.
Kentucky Makes a Massive Jump
Kentucky leaped from 25th place to seventh. Used car prices became more competitive at a median of $15,900, which helps keep the state’s recurring property taxes lower.
Sales tax averages 6%, tying for ninth-best. Gas prices and road conditions both land around 14th nationally.
Insurance is brutal, however. Kentucky ranks 46th for car insurance costs, which significantly cuts into the savings from other categories.
Massachusetts Is Most Improved
Massachusetts made the biggest leap in the rankings, jumping from 33rd to eighth place. Gas prices dropped both in absolute terms and relative to other states, now sitting on the cheaper side of average.
Insurance premiums rank ninth nationally, which matters since insurance is one of the biggest annual costs. Used cars average $14,995, typical for the Northeast.
Fees and supplemental taxes stay on the high side, ranking 27th.
Pennsylvania Slips Four Spots
Pennsylvania dropped from fifth to ninth after the study added road conditions to its methodology. The state ranks 42nd for road quality, which increases maintenance costs.
Used cars remain cheap, though, with median prices under $10,000. Sales tax ties for ninth-best, and both fees and insurance costs land around the national average.
Dragging down its score are gas prices, which rank 41st nationally.
North Dakota Rounds Out the Top 10
North Dakota climbed from 23rd to 10th place. The state makes sense for new car buyers, with dealer documentation fees ranking 15th-lowest and moderate sales taxes.
Road conditions are excellent with 93.3% in acceptable shape, ranking ninth nationally. Recurring fees and taxes stay low at sixth-best.
Used cars are pricey though, with median listings just under $20,000.
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This article originally appeared on GOBankingRates.com: 10 States Where Owning a Car Costs the Least in 2025
