Car sales tax in Texas
Texas: Motor vehicle sales tax (6.25%); no separate local tax on vehicles.
On a $30,000 used car from a dealer with no trade-in, the tax is $1,875.00 and all taxes and government fees come to about $1,967.00–$2,006.25.
Trade-in: a $10,000 trade-in lowers the tax by $625.00. Private sale ($15,000): tax $937.50.
Estimate of government charges. Your DMV, tax office or county calculates the final amount.
Your own numbers
Set up for: buying from a dealer in Texas · Different situation?
Every line on a $30,000 dealer purchase
| Line | Group | Amount | Set by |
|---|---|---|---|
| Motor vehicle sales tax (6.25%) | State & local tax | $1,875.00 | Texas Comptroller of Public Accounts |
| Title application fee | Title | $28.00–$33.00 | Texas Department of Motor Vehicles |
| Base registration fee (by gross weight) | Registration & plates | $50.75 | Texas Department of Motor Vehicles |
| TexasSure insurance verification / DPS fee | Registration & plates | $1.00 | Texas Department of Motor Vehicles |
| County local fees (road and bridge, transportation, child safety) | Registration & plates | $0.00–$31.50 | Texas Department of Motor Vehicles |
| Inspection replacement fee (non-commercial vehicles) | Registration & plates | $7.50 | Texas Department of Motor Vehicles |
| Emissions inspection fee (18 emissions counties only) | Registration & plates | $0.00–$2.75 | Texas Department of Motor Vehicles |
| Processing and handling fee | Registration & plates | $4.75 | Texas Department of Motor Vehicles |
How Texas taxes a car purchase
- Trade-in: Only a motor vehicle traded to the same seller in the same transaction counts; the value (not equity) of the trade-in is deducted. Proceeds of a private sale don't count.
- Private sale: Tax is on the greater of the price or 80% of the TxDMV standard presumptive value (SPV); TxDMV's public SPV tool shows 100% of SPV. A certified appraisal (Form 14-128) within 30 days can lower the base, but not below the price paid.
- Bought in another state: Texas residents who buy out of state owe 6.25% use tax on the price (less trade-in), with a dollar-for-dollar credit for legally imposed sales/use tax paid to another state (not to a foreign country). Private-party out-of-state buys use SPV procedures.
- Local tax: The 6.25 percent motor vehicle tax is a state tax; the official pages describe no city/county motor vehicle sales tax.
Exemptions (check the official rule before relying on one)
- Inherited vehicles: No motor vehicle tax on transfers from a decedent's estate or under a rights of survivorship agreement.
- Community property between spouses: No motor vehicle tax on transfer of a vehicle held as community property between spouses.
- Trade-down: Trading a more valuable vehicle for a less valuable one owes no motor vehicle tax.
Dealer fees
Doc, processing and prep fees are set by the dealer, not the state. No hard cap. Under the OCCC rule (7 TAC 84.205, effective July 11, 2024) a dealer may charge a documentary fee of $225 or less without filing; above $225 the dealer must first file a notification and cost analysis with the OCCC.
Official tools: TxDMV Standard Presumptive Value (SPV) calculator · TxDMV registration renewal (shows your fee)
Sources
- Texas Comptroller of Public Accounts: Motor Vehicle Sales and Use Tax
- Texas Department of Motor Vehicles: Add/Remove a Lien on a Vehicle (title fee)
- Texas Department of Motor Vehicles: Register Your Vehicle (fees)
- Texas Department of Motor Vehicles: New to Texas
- Texas Department of Motor Vehicles: Form 130-U Application for Texas Title and/or Registration
- Texas Comptroller of Public Accounts: Motor Vehicle Tax Guide (96-254): Trade-Ins
- Texas Comptroller of Public Accounts: Motor Vehicle Tax Guide (96-254): Standard Presumptive Value on Private-Party Transactions
- Texas Comptroller of Public Accounts: Motor Vehicle Tax Guide (96-254): Family Transfers
- Texas Office of Consumer Credit Commissioner: Documentary Fee Filing Instructions (effective July 11, 2024)
FAQ
How much is the sales tax on a car in Texas?
Motor vehicle sales tax (6.25%); no separate local tax on vehicles. On a $30,000 used car from a dealer that is $1,875.00 in tax (estimate).
Does Texas charge tax on the price minus the trade-in?
Only a motor vehicle traded to the same seller in the same transaction counts; the value (not equity) of the trade-in is deducted. Proceeds of a private sale don't count.
Do you pay sales tax on a private car sale in Texas?
Tax is on the greater of the price or 80% of the TxDMV standard presumptive value (SPV); TxDMV's public SPV tool shows 100% of SPV. A certified appraisal (Form 14-128) within 30 days can lower the base, but not below the price paid.
What if I buy a car in another state and register it in Texas?
Texas residents who buy out of state owe 6.25% use tax on the price (less trade-in), with a dollar-for-dollar credit for legally imposed sales/use tax paid to another state (not to a foreign country). Private-party out-of-state buys use SPV procedures.
Is there a cap on dealer doc fees in Texas?
Doc, processing and prep fees are set by the dealer, not the state. No hard cap. Under the OCCC rule (7 TAC 84.205, effective July 11, 2024) a dealer may charge a documentary fee of $225 or less without filing; above $225 the dealer must first file a notification and cost analysis with the OCCC.