Car rental tax and fees in the US

If you’re heading out of state for a much-needed vacation or visit, you’ll need to know how much a car rental will cost beforehand. Basing your budget on the base rate alone can be misleading as not all providers include rental taxes and fees in this total. 

This is often because car rental tax differs from state to state. Not to worry, we’ll give you a detailed breakdown of all the car rental taxes and fees you might come across when renting a car for your upcoming trip.

Paying tax for your car reservation

Ever come across car rentals online claiming ridiculously low prices without giving you a breakdown of taxes and extra fees? That’s a big red flag. With Hertz, you’ll easily see how the total cost is worked out, including any extra fees and car rental taxes.

We’re talking county, city, and state taxes, plus any out-of-state fees you might pay. So you know exactly how much you’re paying.

Over 40 states in the US charge either a[LH(S1]  rental tax or a rental fee[ML(S2] . Some states might even charge both. Plus local governments can impose their own rental fees and taxes. With Hertz, we work all of this out for you based on the information you give us about your trip, so you don’t have to stress.

Here’s a breakdown of some of the more common taxes and extra fees you may come across when reserving a car. 

• Car rental taxes – The rental company should provide details on any county, city, and state taxes you’ll be subject to during your trip.
  
• Airport fees – In most cities, renting a car from the airport will increase the base rate because of airport surcharges.
• Location charges – You might be charged extra depending on where your car rental is being dropped off. For example, getting the car rental dropped off at a hotel may be more expensive than picking it up from the rental office.
• Insurance fees – Aside from your rental fees, you might also have to pay an insurance fee. This is usually taken to cover any damages or unforeseen accidents you may have.
• Mileage – Some rental companies also charge mileage. However, if your contract says unlimited mileage, then you can drive without worrying about this cost. 
• Driver fees – You might get charged an additional driver fee if you want to add more than one driver to the car. You can also be charged a driver’s fee because of your age, and this can be divided into categories such as young or senior drivers.
• Fuel – Most car rentals will come with a full tank. You can opt for either a full fuel policy, meaning you don’t need to pay for the fuel upfront, but you must return the car with a full tank. Or you can decide on the full-to-empty policy, which means you’ll pay for the full tank upfront and can return the car on empty.
• Drop-off fees – This applies to renters who, for example, pick up the car at the rental office, but want to drop it off in another location at the end of their trip. This fee is essentially paying for the time, fuel, and labor it will take to return the car.
• Toll fees – Some rental companies will allow you to pay any toll fees upfront or automatically. This will depend on the areas that you plan to visit.
• Early or late return fees – Some rental companies can charge you a fee for returning a rental earlier or later than 24 hours. To avoid any early or late return fees, it’s a good idea to check the return policy so you know what grace period you have. 

The best way to calculate how much you’ll be spending on your car rental is to share your travel plans with the car rental company in advance.

Choose the best location to start your trip

How does your itinerary look? If you’re flexible enough, you can research cheaper areas to pick up your car rental and keep the cost down. For example, airport surcharges will mean you’ll pay more for your car rental if you pick it up at the airport. You can also get off-peak rental deals during certain times of the year.

Read the rental terms carefully

The excitement to get on with your vacation might make you a little impatient, but it’s always important to read the terms and conditions of your car rental agreement. This way, you’ll know what to expect.

If you’re unsure about anything, contact customer service early to get clarification. With Hertz, you’ll get a detailed breakdown of any car rental taxes and fees associated with your planned journey. So you can have a stress-free drive from the moment you get behind the wheel.