Total Loss Sales Tax, Title and Registration Fees by State
Replacing a totaled car costs more than its sticker price: sales tax, a new title and registration. Whether the insurer has to pay those depends on your state.
Short answer
In 30 states a rule makes your own insurer include sales tax in a total loss cash settlement, usually with title and registration fees. In 3 more it is repaid once you buy a replacement within 30 days, and in 4 the regulator expects it without a written rule. In 10 it depends on your policy, so ask for it in writing anyway, and 4 have no state sales tax.
What the rule usually says
Most state rules follow the NAIC model claims regulation: a cash settlement for a totaled car is based on the cost of a comparable car, including all applicable taxes, license fees and other fees to transfer ownership, less your deductible. The tax is on the value of your car, not on the price of whatever you buy next.
The rule in every state
| State | Sales tax (your insurer) | Title and registration fees | At-fault driver's insurer |
|---|---|---|---|
| Alabama | Required in the settlement Cash settlements must include all applicable taxes, license fees and other fees. Ala. Admin. Code r. 482-1-125-.08. |
Included | No specific rule |
| Alaska | Required in the settlement No state sales tax, but local taxes, license and transfer fees for a comparable car are owed, also if you keep the salvage. 3 AAC 26.080; Alaska Bulletin 93-8. |
Included | No specific rule |
| Arizona | Required in the settlement Cash settlement must include all applicable taxes, license fees and other fees; same rule for third-party claims. Ariz. Admin. Code R20-6-801(H)(1). |
Included | Same rule applies |
| Arkansas | Required in the settlement Cash settlement must include taxes, license fees and other fees, itemised; same rule for third-party claims. Ark. Admin. Code 054.00.43-10. |
Included | Same rule applies |
| California | Required in the settlement Cash settlement on the cost of a comparable car including all applicable taxes and fees; third-party total losses are evaluated the same way. Part of the vehicle license fee is refundable from the DMV. Cal. Code Regs. tit. 10, § 2695.8(b). |
Included | Same rule applies |
| Colorado | Required in the settlement Insurers must pay title fees, sales tax and any other transfer or registration fee; applies to third-party claims too. C.R.S. § 10-4-639. |
Included | Same rule applies |
| Connecticut | Required in the settlement When the insurer takes title, it adds sales tax at the current rate to the settlement. Conn. Gen. Stat. § 38a-816. |
Not addressed | No specific rule |
| Delaware | No state sales tax No state sales tax and no rule on fees; check your policy wording. 21 Del. C. § 2118. |
Not addressed | No specific rule |
| Florida | Required in the settlement Settlement must include sales tax, itemised separately from the car's value; same rule for third-party claims. Fla. Stat. § 626.9743. |
Not addressed | Same rule applies |
| Georgia | Required in the settlement Cash settlement must include all applicable taxes and other fees. Ga. Comp. R. & Regs. 120-2-52-.06. |
Included | No specific rule |
| Hawaii | Repaid if you buy a replacement within 30 days Excise tax and ownership fees are repaid if you buy a replacement within 30 days of a cash settlement. Haw. Rev. Stat. § 431:10C-312. |
Included | No specific rule |
| Idaho | Expected by the regulator, no written rule No statute or rule, but the Department of Insurance says you can recover sales tax, title fees and release-of-liability fees. Idaho Department of Insurance consumer guidance. |
Included | No specific rule |
| Illinois | Repaid if you buy a replacement within 30 days If you buy or lease a replacement within 30 days of the settlement, the insurer pays sales tax, transfer and title fees on up to the total-loss value. Ill. Admin. Code tit. 50, § 919.80(c). |
Included | No specific rule |
| Indiana | Required in the settlement Sales tax must be paid with the settlement, not only after you buy a replacement; the Department applies this to third-party claims too. Indiana Insurance Bulletin 82 (1994). |
Not addressed | Same rule applies |
| Iowa | Required in the settlement Cash settlement on a comparable car must include all applicable taxes, license fees and other fees. Iowa Admin. Code r. 191-15.43. |
Included | No specific rule |
| Kansas | Required in the settlement Cash settlement must include all taxes, license fees and transfer fees, for all total loss claims. Kan. Admin. Regs. 40-1-34; Bulletin 2013-01. |
Included | Same rule applies |
| Kentucky | Required in the settlement Cash settlement must include all applicable taxes, license fees and other fees; the regulation covers third-party claimants too. 806 KAR 12:095. |
Included | Same rule applies |
| Louisiana | No rule; depends on your policy Courts split on first-party claims (no tax under an "actual cash value" policy in Clark v. Clarendon, 2003; tax and fees included where ACV is undefined in Cummings v. Allstate, M.D. La. 2023). Against the at-fault driver, damages include sales tax by statute. La. Civ. Code art. 2315. |
Not addressed | Same rule applies |
| Maine | Required in the settlement Policies must cover the sales tax credit you would have had trading the car in at the highest book value. 24-A M.R.S. § 2907. |
Not addressed | No specific rule |
| Maryland | Required in the settlement Cash settlement on a substantially similar car must include all applicable taxes and transfer fees; third-party settlements too. COMAR 31.15.12.04. |
Included | Same rule applies |
| Massachusetts | No rule; depends on your policy The insurer owes the actual cash value on the day of the loss; no rule adds tax or fees. 211 CMR 133.05. |
Not addressed | No specific rule |
| Michigan | No rule; depends on your policy No statute, rule or case on tax or fees; check your policy wording. Claims against the at-fault driver are limited to the $3,000 mini-tort. |
Not addressed | No specific rule |
| Minnesota | Required in the settlement Cash settlement on a comparable car must include all applicable taxes, license fees and other fees. Minn. Stat. § 72A.201. |
Included | No specific rule |
| Mississippi | Required in the settlement Insurers must pay sales tax, title and license fees unless the policy clearly excludes them; the Department applies this to third-party claims. Mississippi Bulletin 2007-4. |
Included | Same rule applies |
| Missouri | No rule; depends on your policy No requirement unless the policy says so; you can ask the state Department of Revenue for a sales tax refund instead. Missouri Department of Insurance auto claim guide. |
Not addressed | No specific rule |
| Montana | No state sales tax No state sales tax and no rule on fees; the insurer owes the car's cash value before the accident. Mont. Code Ann. § 27-1-306. |
Not addressed | No specific rule |
| Nebraska | Required in the settlement Insurers must pay sales tax to put you back where you were; same for third-party claims. Nebraska Bulletin CB-49. |
Not addressed | Same rule applies |
| Nevada | Required in the settlement Cash settlement on a comparable car must include all applicable taxes and other fees. Nev. Admin. Code 686A.680. |
Included | No specific rule |
| New Hampshire | No state sales tax No state sales tax and no rule on fees. N.H. Admin. R. Ins 1002.15. |
Not addressed | No specific rule |
| New Jersey | Required in the settlement Settlement is the value of a substantially similar car plus sales tax; the rule applies to third-party claims once liability is reasonably clear. N.J.A.C. 11:3-10.4; 11:2-17.10. |
Not addressed | Same rule applies |
| New Mexico | Expected by the regulator, no written rule No statute or rule, but the state regulator says the insurer must repay excise tax, title and registration charges after a cash settlement. New Mexico regulator consumer guidance. |
Included | No specific rule |
| New York | Required in the settlement Sales tax is added to the car's value; insurers don't have to pay transfer or title fees. Third-party total losses follow the same minimum-offer rules. 11 NYCRR 216.6, 216.7. |
Not required | Same rule applies |
| North Carolina | No rule; depends on your policy No statute, rule or case on tax or fees; check your policy wording. |
Not addressed | No specific rule |
| North Dakota | No rule; depends on your policy No rule; the payment is the actual cash value less your deductible. |
Not addressed | No specific rule |
| Ohio | Repaid if you buy a replacement within 30 days If you buy a replacement within 30 days of a cash settlement, the insurer repays the sales tax, up to the tax on a car worth the settlement amount. Same rules for third-party claimants. Ohio Admin. Code 3901-1-54. |
Not addressed | Same rule applies |
| Oklahoma | Required in the settlement Cash settlement on a comparable car must include all applicable taxes, license fees and other fees. Okla. Stat. tit. 36, § 1250.8. |
Included | No specific rule |
| Oregon | No state sales tax No state sales tax, but license and other fees must be included, for third-party claims too. Or. Admin. R. 836-080-0240. |
Included | Same rule applies |
| Pennsylvania | Required in the settlement Settlement is the car's pre-loss fair market value plus sales tax on a replacement. 31 Pa. Code § 62.3(e). |
Not addressed | No specific rule |
| Rhode Island | Required in the settlement Cash settlement must include all applicable taxes, license fees and other fees; the rule's "claimant" includes third parties. R.I. Code R. 11-5-73:8. |
Included | Same rule applies |
| South Carolina | No rule; depends on your policy Not owed unless the policy says so (Schulmeyer v. State Farm, 2003). South Carolina charges a capped Infrastructure Maintenance Fee instead of sales tax. Schulmeyer v. State Farm, 579 S.E.2d 132 (S.C. 2003). |
Not addressed | No specific rule |
| South Dakota | No rule; depends on your policy First-party depends on the policy; the regulator says sales tax is generally payable on third-party total losses. |
Not addressed | Same rule applies |
| Tennessee | Required in the settlement Sales tax on the car's value at the time of loss is owed on all total losses, including third-party claims, whether or not you replace the car (not leased cars). Tennessee Bulletin 9-1-89C. |
Not addressed | Same rule applies |
| Texas | No rule; depends on your policy No rule requires it; under an "actual cash value" policy, taxes and fees aren't part of the value (Singleton v. Elephant Ins. Co., 5th Cir. 2020). |
Not addressed | No specific rule |
| Utah | Required in the settlement Cash settlement must include all applicable taxes, license fees and other fees; same for third-party claims. Utah Admin. Code R590-190. |
Included | Same rule applies |
| Vermont | Required in the settlement Cash settlement must include all applicable taxes, license fees and other fees; same for third-party claims. 4-3 Vt. Code R. 7:8, 7:9. |
Included | Same rule applies |
| Virginia | Required in the settlement Cash settlement must include all applicable taxes, license fees and other fees; insurers have been cited for paying them late. Virginia SCC Insurance Order No. 11607. |
Included | No specific rule |
| Washington | Required in the settlement Settlement must include taxes and fees (pro-rated where annual), for third-party claims too, whether or not you keep the car. WAC 284-30-391. |
Included | Same rule applies |
| Washington D.C. | No rule; depends on your policy No statute, regulation or case on tax or fees; check your policy wording. |
Not addressed | No specific rule |
| West Virginia | Required in the settlement A cash settlement adds 5% of the car's value for the excise tax; same for third-party claims. W. Va. Code § 33-6-33; W. Va. Code R. 114-14-7. |
Not addressed | Same rule applies |
| Wisconsin | Expected by the regulator, no written rule No specific rule, but the insurance commissioner has cited insurers for not paying sales tax on total losses. Wis. Admin. Code Ins 6.11. |
Not addressed | No specific rule |
| Wyoming | Expected by the regulator, no written rule No law, but the Department of Insurance's position is that sales tax on the car's value is included. |
Not addressed | No specific rule |
Rules checked October 24, 2026 against a 50-state law firm survey (updated January 2026) and, for Ohio and Washington, the regulation text. "No specific rule" for the at-fault driver's insurer doesn't mean tax isn't owed: in a claim against the other driver you are owed what it costs to replace your car, and tax is part of that.
How to get tax and fees paid
- Check the settlement letter or valuation report for separate lines for sales tax, title and registration. If they are missing, ask in writing for them to be added and cite your state's rule from the table.
- In a 30-day state, keep the bill of sale for the replacement car and send it to the adjuster within 30 days of the settlement.
- Ask for the tax at your local rate (state plus county or city), on the value of your totaled car.
- If the insurer still refuses, file a complaint with your state insurance department; several have cited insurers for leaving tax out.
Not legal, financial, or insurance advice. This page summarises rules and data for general education only. Insurance laws, deadlines, and formulas vary by state, by policy, and by insurer, and they change over time. Verify anything important with your insurance policy, your state department of insurance, or a licensed attorney before relying on it. Leased cars, business vehicles and tax-exempt buyers often follow different rules.
What to do next
Frequently asked questions
Does insurance pay sales tax on a totaled car?
In most states, yes. 30 states have a rule requiring it in the cash settlement, a few repay it after you buy a replacement, and the rest leave it to your policy. The tax is on your totaled car's value, not on the price of the next car.
Do I have to buy a new car to get the sales tax?
Only in states with a purchase rule, such as Illinois, Ohio and Hawaii, where you get it if you buy a replacement within 30 days. In most states that require tax, it belongs in the settlement whether or not you replace the car.
Does the at-fault driver's insurer have to pay sales tax?
In many states the same claims rule covers third-party claims, and Louisiana's law says so outright. Elsewhere, the general rule that you are owed what it costs to replace your car usually includes tax, but you may have to argue for it.