Selflender logo
1 (877) 883-0999 Back to Data & Guides Back
cars icon Cars

Electric Cars vs Gas Cars Cost in Each State 2025

Data & Guides Cars Electric Cars vs Gas Cars Cost in Each State 2025

The use of electric vehicles in the U.S. is growing, slowly but surely. The car market is dominated by gas, but each year, electric vehicles (EVs) become more popular, occupying a 7.5% market share as of Q1 2025, up from 7% in the same period in 2024. [1] Car Edge, “Electric Vehicle Sales and Market Share” https://caredge.com/guides/electric-vehicle-market-share-and-sales Some states have adopted the technology quicker than others; California has the highest adoption with a total of 1.1 million EVs and 3,026 EVs per 100,000 people as of June 2024. [2] Oil Price, “State Rankings: Electric Vehicles Per Capita in the United States” https://oilprice.com/Energy/Energy-General/State-Rankings-Electric-Vehicles-per-Capita-in-the-United-States.html

A key question many people have when looking to buy an electric vehicle is how much it will cost, especially when compared to gas alternatives. This study breaks down a huge number of factors including fuel, energy, mileage, insurance, EV incentives, taxes, registration fees, maintenance, emissions tests, and much more, to work out the complete running cost of EV vs non-EV cars in each state to find out the true price of going green.

Contents

Key statistics

  • The average annual cost to run the most popular electric vehicle in the U.S. is $3,934, compared to $4,007 for the most popular gas car, including insurance, taxes, gas, charging, and maintenance.
  • When factoring in purchase cost, the average cost of the EV is $14,763 each year, assuming a purchase period of six years; for the gas car, the annual cost, including purchase, is $11,177 per year.
  • The cost of insurance for the electric car in this study (Tesla Model Y) has increased by 17.5% between 2023 and 2025.
  • Hawaii is the most affordable state to run an electric vehicle at an average of $2,562 each year, while Wyoming is the most expensive state to run an electric vehicle at $5,661 annually (not including purchase price).
  • Hawaii is also the cheapest state to run a gas car at $2,863 on average each year, whereas Wyoming is the most expensive state to run a gas car at an average of $5,348 per year.
  • California has the highest adoption of EVs in the U.S., with 3,026 per 100,000 people, while Mississippi has the lowest at 110 per 100,000 people.

U.S. map of electric vehicle costs

To use the map, select ‘Price difference’ to see the difference between the running cost of EV and non-EV cars in each state. You can also see the specific data for EV cars and non-EV cars below, there’s also the option to add purchase price.

Price difference ⚡ EV ⛽ Non-EV
Total Cost Taxes Fuel Insurance
Include purchase price i

Insurance cost difference between electric & gas cars

The average annual insurance cost for the average American driver (40-year-old male driver with no accidents or violations) for the electric Tesla Model Y in the U.S. is $3,112, with Colorado being the most expensive state at $4,768, and Hawaii being the cheapest at $1,928. The average cost for insurance of the Toyota RAV4 gas car in the U.S. is $1,899, with Louisiana being the most expensive at $2,890, and Hawaii being the cheapest at $1,312. The price difference for insurance between electric cars and gas cars is, on average, $1,213 cheaper to insure a gas vehicle. [3] Insure.com, “Average Tesla Model Y Car Insurance Cost” https://www.insure.com/car-insurance/tesla-model-y-insurance-cost/ [4] Insure.com, “Average Toyota RAV4 Car Insurance Cost” https://www.insure.com/car-insurance/toyota-rav4-insurance-cost/

Is charging an electric car cheaper than gas?

The average annual cost of charging an electric vehicle in America is $741, referred to as the e-gallon, compared to the average refill cost for a gas car which is $1,926. This cost is based on the average annual mileage per state and the cost of electricity or gas needed to drive this mileage.

With these averages, yes, it is cheaper to charge an electric car than it is to fill a gas car across the year. These prices will vary greatly by state, but in the dataset this study uses, the cost of electricity was cheaper than gas for running vehicles. [5] AAA, “Your Driving Costs” https://newsroom.aaa.com/wp-content/uploads/2024/08/YDC-Brochure-FINAL-9.2024.pdf

Electric car cost per mile vs gas

This study compared the average cost per mile of fuel for a gas compact SUV like the Toyota Rav 4 and the cost per mile of charging for an electric compact SUV like the Tesla Model Y. The electric car comes out cheaper due to the lower cost of charging.

On average, a gas-powered compact SUV costs approximately $0.13 per mile, or $1,904 per year, based on driving 15,000 miles per year. For an electric-powered compact SUV, the cost per mile is approximately $0.05, or $729 per year for 15,000 miles. [5] AAA, “Your Driving Costs” https://newsroom.aaa.com/wp-content/uploads/2024/08/YDC-Brochure-FINAL-9.2024.pdf

Electric vehicle vs gas car tax

Without taking into account incentives and subsidies, taxes on electric vehicles are typically more expensive than gas cars.
Across the states, the average total cost of taxes for the gas Toyota Rav 4 is $2,671 a year, compared to $2,928 for the electric Tesla Model Y. [6] Tax Foundation, “State and Local Sales Tax” https://taxfoundation.org/data/all/state/sales-tax-rates/

Methodology

To work out the costs this study used America’s most popular electric car, Tesla’s Model Y, and the most popular gas-powered car, the Honda Civic. Annual averages assume the cost will be spread out over a six-year period. Costs were analyzed per state, including the prices of gas, electricity, insurance, EV incentives, taxes, registration costs and any other fees specific to a state.

To work out average insurance costs the study used Quote Inspector in the largest city per state, and assumed a 40-year-old male driver with no accidents or violations, $500 comprehensive and collision deductibles, minimum liability limits, and uninsured/under-insured motorist coverage would be included. The average American who drives is between 40-44 years old.

Incentives were applied on a state-by-state basis, including Federal tax credits, State tax credits, Clean Vehicle Rebate Project, Utility Authority rebates, electric vehicle supply equipment (EVSE) rebates, income tax credits, among other funds. This number did not include an assumed cost of parking credits offered by many states.

This study includes Federal and state incentives, tax credits, rebates, and cash incentives for the Tesla Model Y electric vehicle.

For Teslas specifically, annual registration fees, EV ownership fees, home wall charger and labor costs, charging fees, and average additional insurance premiums were accounted for per state.

Gas was totaled by using the average price per gallon of regular unleaded in each state. Charge data was accounted for using an average cost per KwH of Power. Cars were assumed to have an annual mileage of 10,000 miles, the study also used a maintenance cost per mile by state. Average maintenance costs account for increased costs in years 2-3, this cost has been spread over 3 years accordingly.

Sources

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Related Articles

You are leaving Self Close
Self Financial, Inc. and the issuer(s) of the Credit Builder Account and Secured Credit Card make no representation concerning and is not responsible for the quality, content, nature, or reliability of any hyperlinked site and is providing this hyperlink to you only as a convenience. The inclusion of any hyperlink does not imply any endorsement, investigation, verification or monitoring by Self Financial, Inc and the issuer(s) of the Credit Builder Account and Secured Credit Card of any information in any hyperlinked site. In no event shall Self Financial, Inc. or the issuer(s) of the Credit Builder Account and Secured Credit Card be responsible for your use of a hyperlinked site.