What Is a Car Registration Fee?

What Is a Car Registration Fee?

Car registration fees are mandatory fees you pay your state and/or local government to legally register and operate a car. Registration fees are required when you purchase a vehicle and again every year or every other year to renew your registration.

When you buy a car from a dealership, registration or vehicle licensing fees are typically added to your sales price. The dealer handles the paperwork for you, and may even issue the title and registration onsite. If you're buying a car from a private party or small dealership, you may have to visit the local office of your state's department of motor vehicles (DMV) or department of transportation to file paperwork and pay your registration fees in person.

What Does a Car Registration Fee Cover?

Your car's initial registration costs may cover a base registration fee as well as a title and license plate fees required to establish yourself as the car's legal owner and register your car with the state. Common fees include the following:

• Title: The car's title provides proof of the vehicle's legal ownership.
• Registration: Your vehicle's registration shows that your car is legal to operate in your state and names you as the person to whom the car is registered.
• License plates: As part of your registration, you'll be issued new license plates if you need them or may transfer use of the car's existing plates.
• State or local taxes: Your registration fee may include state or local usage fees or other taxes used to pay for road maintenance, highway patrol and other driving-related costs.
• Administrative fees: Your registration costs may include separate line items, such as title transfer fees.

In some cases, these are all rolled into a single DMV fee. In others, registration fees may be singled out, with separate charges for title, license plates, fees and taxes.

In future years, you'll need to renew your registration every year or every other year to keep it current. Don't let your registration lapse. You may have to pay a late fee if you don't renew on time. If you're stopped for a traffic violation and your registration isn't current, you could receive a citation. If your registration is seriously in arrears, you may even have your car impounded or license suspended.

How Much Does a Car Registration Fee Cost?

Registration fees vary depending on a variety of factors, including the state you live in and the type of car you drive. For specifics on how registration fees are calculated in your state, visit the website for your state's DMV or equivalent agency. They have information on flat fees (where applicable) and online calculators to help you estimate your registration costs.

Here are a few quick examples:

• California: Registration fees are based on the car's value, age and the type of fuel it uses. The estimated registration fee for a new 2025 gas-powered car with a sales price of $35,000 is $560 for an owner who lives in Long Beach, based on the California DMV's registration fee calculator, plus title fees and license plate fees of $27 (each).
• New York: Registration fees are calculated by vehicle weight. A new compact SUV weighing 4,700 pounds has a registration fee of $85.50. To register a new car, you would also pay $25 for new vehicle plates and $50 for a title certificate, for a total of $160.50, plus sales tax.

The Bottom Line

Registration fees can add hundreds of dollars to your car purchase costs, but they're an unavoidable part of owning a vehicle and driving it legally. If you're trying to figure out how much car you can afford, you may want to factor in registration expenses (and the sales taxes that often accompany them) to get a more accurate read on what a car actually costs.

Since good credit can help you secure a car loan—and get favorable rates—you may want to check your credit score and report online with Experian. Checking your credit in advance can help you better strategize and find loan options to fit your finances and budget.