Boat Sales Tax by State (2026): Rates, Caps and Exemptions
Boat sales tax depends on the state where the boat is registered, not where you buy it. A few states cap the tax at a fixed dollar amount, and some charge none at all.
Want to see the tax in your monthly payment? Open the boat loan calculator
Boat sales tax table: all 50 states
| State | Base state rate | Boat cap or note |
|---|---|---|
| Alabama | 4% | Verify boat-specific rate |
| Alaska | 0% | No state tax; local taxes may apply |
| Arizona | 5.6% | Verify; county and city taxes add on |
| Arkansas | 6.5% | Verify |
| California | 7.25% | No cap; local district taxes apply |
| Colorado | 2.9% | Verify; local taxes are significant |
| Connecticut | 6.35% | Higher rate may apply to pricier boats; verify |
| Delaware | 0% | No state sales tax |
| Florida | 6% | Tax capped at $18,000 on high-priced boats; county surtax may apply |
| Georgia | 4% | Verify |
| Hawaii | 4% | General excise tax; verify |
| Idaho | 6% | Verify |
| Illinois | 6.25% | Verify |
| Indiana | 7% | Verify |
| Iowa | 6% | Boats often taxed via registration fee; verify |
| Kansas | 6.5% | Verify |
| Kentucky | 6% | Verify |
| Louisiana | 4.45% | Verify; local taxes apply |
| Maine | 5.5% | Verify |
| Maryland | 5% | Titling tax capped at $15,900 |
| Massachusetts | 6.25% | Verify |
| Michigan | 6% | Verify |
| Minnesota | 6.875% | Verify |
| Mississippi | 7% | Verify boat-specific rate |
| Missouri | 4.225% | Verify; local taxes apply |
| Montana | 0% | No state sales tax |
| Nebraska | 5.5% | Verify |
| Nevada | 6.85% | Verify |
| New Hampshire | 0% | No state sales tax |
| New Jersey | 6.625% | Verify |
| New Mexico | 4.875% | Verify; excise tax may apply |
| New York | 4% | State tax on first $230,000 only; local tax applies |
| North Carolina | 3% | Tax capped at $1,500 |
| North Dakota | 5% | Verify |
| Ohio | 5.75% | Verify |
| Oklahoma | 4.5% | Verify |
| Oregon | 0% | No state sales tax |
| Pennsylvania | 6% | Verify |
| Rhode Island | 7% | Verify |
| South Carolina | 5% | Tax capped at $500 |
| South Dakota | 4.2% | Verify |
| Tennessee | 7% | Verify; local tax applies |
| Texas | 6.25% | No cap; local surtaxes may apply |
| Utah | 4.85% | Verify |
| Vermont | 6% | Verify |
| Virginia | 2% | Tax capped at $2,000 |
| Washington | 6.5% | Verify; local tax applies |
| West Virginia | 6% | Verify |
| Wisconsin | 5% | Verify; county tax may apply |
| Wyoming | 4% | Verify |
States that cap boat sales tax
Capped states can save large-boat buyers thousands. South Carolina ($500), North Carolina ($1,500), Virginia ($2,000), Maryland ($15,900) and Florida ($18,000) limit how much tax you pay on an expensive boat. New York taxes only the first $230,000 of the price at the state level.
States with no boat sales tax
Alaska, Delaware, Montana, New Hampshire and Oregon have no state sales tax. Local taxes, registration fees or use taxes may still apply, so check before assuming a purchase is tax free.
Where you register matters more than where you buy
Most states charge use tax based on where the boat is registered and mainly kept. If you paid sales tax in another state, many states give a credit for it, so you usually pay only the difference. Buying across state lines to dodge tax rarely works and can cause problems at registration.
Trade-ins and sales tax
In many states, your trade-in value is subtracted from the taxable price, which lowers the tax. Some states do not allow this, so confirm your state’s rule. Our trade-in value calculator shows the effect.
Add the tax to your payment estimate
Sales tax is usually financed with the boat, which raises your loan amount and total interest. Use the boat loan calculator to see the monthly payment, or the affordability calculator to work backward from a budget.
Frequently asked questions
Do I pay boat sales tax where I buy or where I register?
Usually where you register the boat and mainly keep it. Most states credit tax already paid to another state.
Which states have the lowest boat sales tax?
States with no sales tax (Alaska, Delaware, Montana, New Hampshire, Oregon) and states with caps, such as South Carolina at $500 and North Carolina at $1,500.
Does a trade-in reduce boat sales tax?
In many states it does, because tax applies only to the price after the trade-in. Rules vary, so check your state.
Can I finance the sales tax on a boat?
Most lenders allow it, and it is added to the amount financed. That increases your payment and total interest.
Are there local taxes on top of the state rate?
Often yes. Cities, counties and districts can add their own tax, especially in California, Texas, Colorado and Louisiana.
