Eleven states still tax vehicles as personal property each year
Personal property tax on vehicles exists in only eleven states: Illinois, Indiana, Iowa, Kentucky, Louisiana, Missouri, Montana, Ohio, South Carolina, Texas, and West Virginia. These states treat a vehicle as taxable personal property rather than as a motor vehicle subject only to registration fees and sales tax. The tax is usually assessed annually based on the vehicle's value, and the rate and calculation method vary significantly from state to state.
If you own a vehicle in one of these states, you will receive a personal property tax bill separate from your vehicle registration renewal. The tax is typically due once per year, though some states allow installment payments. If you live in any other state, your vehicle is not subject to personal property tax — you pay sales tax at purchase and registration fees annually, but no ongoing property tax on the vehicle itself.
Key Takeaways
- Eleven states currently tax vehicles as personal property: Illinois, Indiana, Iowa, Kentucky, Louisiana, Missouri, Montana, Ohio, South Carolina, Texas, and West Virginia.
- Personal property tax on vehicles is assessed annually based on the vehicle's market value, and rates range from less than 1% to over 2% depending on the state.
- Tax bills are usually mailed by the county assessor's office, and payment is due by a specific date that varies by state and county.
- If you move to a state with personal property tax on vehicles, you typically must register the vehicle and declare its value within 30 to 90 days of establishing residency.
How personal property tax on vehicles is calculated
The tax is calculated by multiplying your vehicle's assessed value by the state or local tax rate. The assessed value is usually based on the vehicle's market value — what it would sell for on the open market — rather than what you paid for it. States use different methods to determine market value: some use published guides like the National Automobile Dealers Association (NADA) book, others use the Kelley Blue Book, and a few allow taxpayers to declare the value themselves.
Tax rates vary widely. In Texas, the rate is typically 1.25% of the vehicle's value, but it can be higher or lower depending on your county. In Missouri, the rate is usually around 0.5% to 1.5%. In Illinois, the rate is set by the county and can range from less than 1% to over 2%. You can find your state's current rate by contacting your county assessor's office or checking your state's Department of Revenue website.
The tax is recalculated each year as your vehicle depreciates. A new car will have a higher tax bill than the same car five years later, because its assessed value has dropped. Once a vehicle reaches a certain age — typically 10 to 15 years, depending on the state — some states exempt it from personal property tax entirely or assess it at a flat rate.
When and how to pay personal property tax on vehicles
In most states, the county assessor's office mails a personal property tax bill to the vehicle's owner once per year. The bill includes the assessed value, the tax rate, and the total amount due. Payment is usually due by a specific date — often in December or January, though this varies by state and county. Some counties allow you to pay online, by mail, or in person at the assessor's office.
If you do not pay by the deadline, penalties and interest accrue. In many states, unpaid personal property tax can result in a lien on the vehicle, which means the state can seize it or prevent you from renewing your registration. If you believe the assessed value is too high, most states allow you to file a protest or appeal with the assessor's office, usually within 30 to 60 days of receiving the bill.
Some states allow installment payments if the tax bill is large. Contact your county assessor's office to ask whether your county offers a payment plan. A few states also offer exemptions or reductions for certain groups — such as disabled veterans or low-income seniors — so check whether you may be may be able to access.
What happens when you buy or sell a vehicle in a personal property tax state
When you purchase a vehicle in one of these eleven states, you are responsible for personal property tax starting in the year you buy it. You typically must register the vehicle with your state's Department of Motor Vehicles and declare its value within 30 to 90 days of purchase. The assessed value for tax purposes is usually based on the purchase price or the market value at the time of registration, whichever is lower.
When you sell a vehicle, you are no longer responsible for personal property tax on it after the sale is complete. However, you must notify your county assessor's office that you no longer own the vehicle, or you may continue to receive tax bills. Keep a copy of the bill of sale or title transfer as proof that you no longer own the vehicle.
If you move from a personal property tax state to a state that does not have this tax, you will not owe personal property tax in your new state. However, you must register your vehicle in the new state within the timeframe required by that state's law — usually 30 to 90 days after establishing residency. Once you register it in the new state, you are no longer liable for personal property tax in your former state.
State-by-state rates and deadlines
The table below shows the typical tax rate and payment deadline for each of the eleven states that tax vehicles as personal property. Rates and deadlines vary by county within each state, so the figures shown are averages or the most common deadline. Contact your county assessor's office to confirm the exact rate and deadline for your location.
| State | Typical Tax Rate | Payment Deadline | Notes |
|---|---|---|---|
| Illinois | 0.5% to 2%+ (county-set) | Varies by county | Rate set locally; contact your county assessor |
| Indiana | 0.85% (state rate) | May 10 | Uniform statewide rate |
| Iowa | Varies by county | September 30 | County assessor determines value |
| Kentucky | Varies by county | November 30 | Vehicles over 12 years old may be exempt |
| Louisiana | Varies by parish | December 31 | Parish assessor sets rate |
| Missouri | 0.5% to 1.5% (county-set) | December 31 | Rate varies by county; contact assessor |
| Montana | Varies by county | May 31 | Vehicles over 10 years old may be exempt |
| Ohio | Varies by county | Varies by county | Contact your county auditor for specifics |
| South Carolina | Varies by county | January 31 | Assessed value based on NADA book |
| Texas | 1.25% (average) | January 31 | Rate varies by county; can be higher or lower |
| West Virginia | Varies by county | September 1 | Contact your county assessor |
The rates and deadlines shown above are current as of this writing, but they change periodically. Contact your county assessor's office or your state's Department of Revenue to confirm the current rate and deadline for your specific location. Many county assessor offices now provide online tools to look up assessed values and payment information.
How to find your county assessor and check your vehicle's assessed value
Your county assessor's office is responsible for assessing the value of your vehicle and sending you a tax bill. You can find contact information by searching "[your county name] assessor" online or by calling your county courthouse. Most assessor offices now allow you to look up your vehicle's assessed value on their website by entering your name and vehicle information.
If you believe the assessed value is incorrect, you can file a protest with the assessor's office. You will need to provide evidence of the vehicle's actual market value — such as a recent appraisal, a comparable sale price, or a value from the Kelley Blue Book or NADA guide. Most states require you to file a protest within 30 to 60 days of receiving the tax bill, so act quickly if you plan to challenge the assessment.
Frequently Asked Questions
Do I have to pay personal property tax on a vehicle I own outright?
Yes. Personal property tax applies whether you own the vehicle outright or have a loan on it. If you have a loan, the lender may be listed on the tax bill, but you are still responsible for paying the tax. The lender does not pay it for you.
What if I move to a personal property tax state with a vehicle I already own?
You must register your vehicle in the new state within the timeframe required by that state — usually 30 to 90 days after establishing residency. Once you register it, you become subject to personal property tax in that state. The assessed value is typically based on the vehicle's current market value, not what you paid for it originally.
Can I get out of paying personal property tax by registering my vehicle in another state?
No. If you live in a personal property tax state, you must register your vehicle there and pay the tax. Registering a vehicle in a different state where you do not live is illegal and constitutes tax evasion. Your state of residency determines where you must register your vehicle.
Are there exemptions for seniors or disabled people?
Some states and counties offer exemptions or reductions for seniors, disabled veterans, or low-income residents. Contact your county assessor's office to ask whether you may be may be able to access. You will typically need to provide proof of age, disability status, or income, and you may need to file an application by a specific deadline each year.
What happens if I do not pay my personal property tax bill?
Unpaid personal property tax results in penalties and interest charges. If the bill remains unpaid, the state can place a lien on your vehicle, which prevents you from selling it or renewing your registration. In some cases, the state can seize and sell the vehicle to cover the unpaid tax. Contact your assessor's office immediately if you cannot pay by the deadline to ask about payment plans or hardship exemptions.