If you’ve been dreaming of life on the open road, there’s one question that always comes up: What is the cheapest state to buy an RV? On the surface, it seems like a question of sticker price—but the real answer goes far deeper.
From sales taxes and registration fees to insurance premiums and residency loopholes, each state comes with its own financial pros and cons. This guide pulls together everything you need to know to make the most cost-effective RV purchase—whether you’re a weekend traveler or a full-time nomad.
Is It Just About the Purchase Price?
Not quite. While you might find a cheaper used RV in Arizona or Texas, owning an RV comes with many hidden costs. These include:
- Sales tax
- Title and registration fees
- Personal property tax
- Insurance premiums
- Residency requirements and legal limitations
When you ask what is the cheapest state to buy an RV, you’re really asking about all of these combined—not just what it says on the price tag.
Which States Have No Sales Tax on RVs?
Let’s talk about the most obvious (and often most expensive) fee: sales tax. On a $100,000 RV, sales tax alone could add $6,000–$10,000 depending on your state.
Here’s where states with zero sales tax shine:
| State | Sales Tax | Residency Required? | Key Benefit |
| Montana | 0% | No (via LLC) | No sales tax, no personal property tax |
| Oregon | 0% | Yes | No sales tax, but higher registration fees |
| Delaware | 0% | Yes | Low reg. fees, no inspections |
| Alaska | 0% | Yes | Some cities may charge local sales tax |
| New Hampshire | 0% | Yes | Tax-free but limited RV sales infrastructure |
Montana leads this category, especially because it allows non-residents to register RVs through an LLC—a popular tax-saving strategy we’ll break down next.
How Does the Montana LLC Loophole Work?
Montana has no sales tax, and its law allows LLCs—regardless of where the owner lives—to purchase and register vehicles. This is how out-of-state residents buy expensive RVs and avoid paying thousands in taxes.
Here’s how it works:
- You create an LLC in Montana (typically via a registered agent).
- You purchase the RV under the LLC’s name.
- You register the RV in Montana—legally bypassing your home state’s sales tax.
But be cautious: Some states like California, New York, and Pennsylvania have aggressively pursued residents who try this tactic. It’s best to consult an attorney or reputable LLC service before going this route.
Which States Don’t Charge Personal Property Tax on RVs?
Personal property tax is another sneaky cost that adds up over time. Some states charge you annually based on the RV’s value.
States with no personal property tax on RVs include:
- Montana
- South Dakota
- Texas
- Florida
These states make long-term RV ownership more affordable. If you’re planning to keep your RV for 5+ years, the savings here can rival what you’d save on sales tax.
What States Offer the Lowest RV Registration Fees?
Registration fees can range from $40 to over $1,000 depending on where you live, the RV’s weight, and whether you’re registering a motorhome or trailer.
Here’s a quick comparison table:
| State | Registration Fee | Special Notes |
| South Dakota | Based on weight (~$150–$400) | Low fees + no vehicle inspection |
| Delaware | ~$40 + per weight/length | One of the cheapest for travel trailers |
| Alaska | Flat $100 base fee | Some RVs eligible for permanent registration |
| Missouri | $32–$52 per year | Affordable and consistent |
| Montana | $200–$400 (age-based) | Even cheaper for older RVs |
States like South Dakota and Montana continue to lead here due to transparent fee structures and no surprise inspections.
Where Are Used RVs Cheapest to Buy?
While the lowest ownership costs may come from tax-free states, you might find the best used RV deals in high-supply areas.
States like Texas, Florida, and Arizona are known for their massive inventories due to the snowbird and retiree populations. Many owners in these states upgrade or sell frequently, so the secondary market stays active.
Shopping during summer (the off-season in these states) may land you the best deals.
Does Residency Impact Where You Can Register Your RV?
Yes. You typically need to prove residency to register your RV in a given state. That includes having a physical address, driver’s license, and sometimes voter registration.
But there are exceptions. South Dakota, for example, allows people to establish residency after just one overnight stay and use a mail-forwarding service. This makes it a favorite for full-time RVers.
What State Is Best for Full-Time RV Living?
If you’re going full-time rv living, your state of domicile affects everything—from taxes to insurance to how you vote.
Top choices:
- South Dakota: Easy residency setup, no income tax, mail forwarding services
- Montana: Tax-free ownership + LLC option
- Florida: Warm weather, no income tax, excellent medical care access
Full-time RVers need to consider not just buying the RV, but the legal and logistical implications of where they “live” on paper.
Are There Hidden Costs to Buying an RV in Another State?
Definitely. While a Montana LLC can save you $6,000 in sales tax, you’ll still need to factor in:
- Travel costs to inspect or pick up the RV
- Delivery or transport fees
- Insurance issues tied to state registration
- Scrutiny from your home state DMV or tax office
States like California and Illinois are known for chasing down residents trying to register vehicles elsewhere.
How Does Insurance Differ by State?
RV insurance rates vary depending on:
- Weather risk (hurricanes, floods, wildfires)
- Theft/crime rates
- Whether you’re using it full-time or part-time
- Required coverages (minimum liability, etc.)
You’ll usually pay more in Florida or Louisiana than in Oregon or South Dakota. Always get multiple quotes based on your registration state.
Should I Buy In-State or Out-of-State?
Buying in-state keeps things simple. You pay the sales tax, register locally, and insure with ease. But if you’re buying a big-ticket RV and are strategic, buying out of state could save you thousands.
Just make sure you understand the residency rules, insurance implications, and possible penalties before making your move.
Frequently Asked Questions
What is the absolute cheapest state to buy an RV?
Montana is the most cost-effective state due to its zero sales tax, no personal property tax, and low registration fees. It’s especially ideal for high-cost RVs and savvy buyers using an LLC.
Can I register my RV in Montana if I don’t live there?
Yes. Through a Montana-based LLC, non-residents can legally register their RVs and avoid sales tax. Just ensure you follow proper legal setup to avoid penalties.
Is South Dakota a good state for full-time RVers?
Absolutely. South Dakota has no income or personal property tax, easy residency requirements, low registration fees, and strong support for full-timers.
Why are used RVs cheaper in Texas, Arizona, and Florida?
These states have large RV populations and lots of turnover, especially among retirees. The supply of used RVs keeps prices competitive—especially in off-seasons.
Final Thoughts: Find the Right State for Your RV Life
So, what is the cheapest state to buy an RV? If you’re focused purely on tax savings, Montana wins. If you want low fees and easy residency for full-time living, South Dakota might be better. Want the best used deals? Head to Texas, Arizona, or Florida.
Ultimately, it comes down to more than just the upfront cost. Think about your lifestyle, legal comfort level, and how long you plan to keep your RV. Then pick the state that gives you the freedom to explore without draining your wallet.
