Which State is Best for Buying an RV – All You Need to Know

Buying an RV can run you up tens of thousands of dollars, excluding the amount that you’ll have to put into it to upgrade the RV and add on RV accessories that make the RV more comfortable. Because of this, doing research and shopping around on the ideal time to go shopping and the best state to buy an RV for these big purchases could save RV you several thousand dollars.

Why is it cheaper in different states to buy an RV? This can be answered by knowing that different states have varying levels of sales taxes and various other additional taxes on RV purchases, which can significantly impact the price of the RV.

Buying an RV: Taxes

As an RV owner, you’ll find that you have to pay a sales tax on your newly purchased RV depending on which state the RV is registered, regardless of where you bought it and if it were through a private seller or RV dealership. You have to register your RV with your primary residence’s address.

When the laws weren’t as strict when it came to sales tax, some people would register their RVs in states that had low sales tax rates, regardless if they lived there or not. For instance, Montana is a state that doesn’t have a sales tax rate on general goods, and non-Montana residence can register their RVs there, making Montana an ideal place to purchase RVs.

Nowadays, sales tax avoidance by using loopholes such as the one described above aren’t as easy to do anymore. Some states don’t have sales taxes (i.e., New Hampshire, Oregon, Delaware, and Alaska) but have fixed the loophole by making it a requirement that you must be a legal resident of the state if you want to register and title an RV in that state.

There are other states, such as Massachusetts, Minnesota, Nebraska, Iowa, and California, that require the buyer to register their RV that was bought in another state in a certain timeframe after the purchase date.

Additionally, tax collectors have an easy time tracking an RV purchase transaction and collecting what’s due because of all the well-documented paperwork involved. Plus, it can be hard getting your RV insured if you don’t register it in the state of your primary residence.

Which State is Best for Buying?

The state that is the best for buying an RV is Montana because it’s the cheapest state to purchase from since they don’t have a general sales tax, county sales tax, or city sales tax. Additionally, Montana allows non-residents to purchase RVs from there and register their RV there.

If you happen to reside outside of Montana, there are service providers that will run you through the whole process with you for a small fee, which can save you a ton of effort, time, and money when registering the RV and delivering it back to your state of residence.

Other States for Buying an RV

The only state that has such a tax situation is Montana, and it’s also unique as the only state that lets non-residents register their RVs there. But there is good news: if you’re willing to be flexible with your primary residence, meaning that you’re able to relocate to another state, you have a couple of additional options for buying an RV.

Your top choice should be states that have a zero percent income tax. From these states, you should then find one that has a zero percent tax on dividend income and interest income to lower your overall tax expenses. States that meet these requirements are Nevada, Texas, Washington, Florida, Wyoming, and South Dakota.

The absolute best state for buying an RV is Montana. This is because you can purchase and register there without having to live in Montana, and you can utilize service providers that can take care of buying an RV for you for a small additional cost.

The next best states ranked in terms of the lowest to highest total taxes are South Dakota, Wyoming, Texas, and Nevada. Next, you have Washington and Florida, the two states that have a good sales tax but, unfortunately, also have personal property tax.

Best Time for Buying

Other than identifying which state is the best for buying an RV, knowing the right time for purchasing an RV is just as important for saving you money.

In most places, the perfect time for buying an RV is mid-winter because the sales for RVs are falling. Many salespeople are more willing to give you a large discount to close out a sale during the winter season. You can also go to an RV show to find the best deals on your ideal RV.

If you’re hoping to get a used RV, then you should wait until autumn because that’s when new RV models are typically released.

Conclusion

Buying an RV requires you to know which state is the best one to get the best price. Since you’re already spending tens of thousands of dollars on your RV while trying to lead an RV lifestyle, why not save a few by going to a different state with lower taxes?

Knowing which state has the lowest taxes will help save you a lot of money when you’re buying an RV. Montana is the best state for buying an RV because it has no taxes on the purchase of RVs and because you can register your vehicle there even if you don’t live in that state.

If you’re able to move to another state, you have more options available to you, such as Texas, Nevada, and South Dakota. These states have lower tax rates making it so buying an RV is slightly cheaper. You could even go to Florida or Washington, but you’ll be expected to pay a personal property tax on your RV as well as the sales tax.

There are so many options available to you when buying an RV. You just need to be open to the possibilities.