Rock N' Roll Racing on SNES Uniracers is also up there, but it's less of a racing game imo.
Gaming
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An excellent question, with a somewhat complicated answer. I don’t know how it is for other people, but my absolute favorite varies with time and mood. However, I certainly have favorites per genre of racing:
Arcade: Out Run
Sim/sim-like: Gran Turismo 7
Kart: Mario Kart 8 (switch version)
Permanent favorite non-racing game with lots of car driving involved: Grand Theft Auto: Vice City
Partially because I don't see it mentioned, Destruction Derby Arenas
Forza horizon 4 was the most fun I’ve ever had in a racing game. Binge played it with a friend and then when horizon 5 came out we did the same. Although something about horizon 4 was slightly more fun
Gmod, there's a certain satisfaction in putting together the most dubious car in existence and rolling through maps.
Burnout: Paradise Island (the old version)
I've not played any car games in years but I have fond memories of Outrun and the 1st Gran Turismo.
Mario Kart for Arcade/Family/Multiplayer/Party is pretty good.
Assetto Corsa is the best sim ever, very realistic, lots of variety from Fiat 500 to F1, loads of tracks and tons of mods.
Now I'm playing F1 23 and they really did fix the traction, it's early but so far I like it
FH3>FH5>FH4
TrackMania, give me those Eurobeats on a high speed modded track playlist with my buddies and I'll be a happy guy