Louisiana Has The Highest Car Ownership Burden In America

For many Americans, owning a car is a necessity, but the financial burden varies dramatically by state. In the least affordable places, annual vehicle expenses consume nearly one-quarter of the typical household’s income.

This map, via Visual Capitalist's Dorothy Neufeld, ranks every state by annual car ownership costs as a share of median household income, based on analysis from LendingTree of active auto loan holders. The estimates include financing, insurance, fuel, and maintenance.

The States Where Car Ownership Costs the Most

The table below ranks every state by annual car ownership costs as a share of median household income.

State	Total Costs	Median Household Income	% of Household Income
Louisiana	$14,894	$64,199	23.2%
Mississippi	$13,378	$62,242	21.5%
New Mexico	$14,115	$71,388	19.8%
Arkansas	$12,798	$65,378	19.6%
Alabama	$13,164	$70,171	18.8%
West Virginia	$11,951	$64,001	18.7%
Kentucky	$12,628	$67,925	18.6%
Oklahoma	$12,722	$69,633	18.3%
Florida	$14,546	$81,830	17.8%
Missouri	$13,235	$75,360	17.6%
Arizona	$14,860	$85,779	17.3%
Wyoming	$13,533	$79,511	17.0%
Texas	$14,139	$83,921	16.8%
Nevada	$14,341	$85,408	16.8%
Montana	$13,245	$79,309	16.7%
Georgia	$13,733	$84,205	16.3%
Tennessee	$12,350	$75,790	16.3%
Kansas	$12,941	$79,492	16.3%
Indiana	$12,269	$75,750	16.2%
South Carolina	$12,233	$76,161	16.1%
Michigan	$12,208	$76,202	16.0%
North Dakota	$12,766	$81,973	15.6%
Ohio	$11,574	$76,016	15.2%
Iowa	$11,992	$79,478	15.1%
North Carolina	$11,725	$77,854	15.1%
Nebraska	$12,133	$80,399	15.1%
South Dakota	$12,092	$80,931	14.9%
Wisconsin	$11,947	$81,570	14.6%
New York	$13,183	$90,341	14.6%
Idaho	$12,340	$85,442	14.4%
Pennsylvania	$11,735	$81,630	14.4%
Illinois	$12,549	$87,594	14.3%
Maine	$11,231	$80,469	14.0%
Oregon	$12,528	$89,709	14.0%
Delaware	$12,680	$92,145	13.8%
Rhode Island	$12,042	$87,903	13.7%
Colorado	$13,876	$102,229	13.6%
California	$14,325	$105,425	13.6%
Minnesota	$12,304	$91,706	13.4%
Vermont	$11,542	$87,088	13.3%
Alaska	$13,051	$100,705	13.0%
Washington	$13,558	$104,625	13.0%
Utah	$13,023	$101,750	12.8%
Virginia	$12,214	$96,941	12.6%
New Jersey	$13,708	$109,788	12.5%
Connecticut	$12,630	$101,109	12.5%
Hawaii	$13,193	$106,052	12.4%
Maryland	$13,314	$108,326	12.3%
District of Columbia	$13,205	$115,486	11.4%
New Hampshire	$11,418	$105,038	10.9%
Massachusetts	$11,745	$110,350	10.6%
🇺🇸 U.S. Average	$12,841	$85,759	15.0%

Data is for active auto loan holders. Cost and income figures were adjusted to 2026 dollars.

Louisiana is the nation’s least affordable state for car ownership, with the typical household spending 23.2% of its income, or $14,894 annually, on vehicle expenses. By comparison, Massachusetts households devote just 10.6% of their income to car ownership.

Mississippi, New Mexico, Arkansas, and Alabama round out the top five, with households in each spending roughly one-fifth of their income on car ownership.

Why Car Ownership Is Less Affordable Across the South

The South dominates the least affordable rankings because many states combine relatively modest household incomes with high ownership costs.

Insurance is one major factor. Louisiana and Florida, for example, consistently rank among the country’s most expensive states for auto insurance due to severe weather, litigation costs, and high accident claims.

Drivers in many Southern states also travel more miles each year, increasing spending on fuel, maintenance, and repairs.

America’s Most Affordable States for Car Ownership

Massachusetts has the nation’s lowest car ownership burden, with annual costs equal to 10.6% of median household income, or $11,745.

New Hampshire and Maryland also rank among the most affordable states, helping make the Northeast the country’s least financially burdensome region for car ownership. Higher incomes help keep costs manageable across much of the region, while extensive public transit may allow some households to drive less or own fewer vehicles.

These rankings show that car affordability depends on more than the cost of owning and operating a vehicle. Household income also plays a major role, meaning similar expenses can create very different financial burdens depending on where people live.

To learn more about this topic, check out this graphic on the cheapest car brands to own and maintain.