Texas Vehicle Tax Basics
Texas imposes a 6.25% sales tax on vehicle purchases, known as the motor vehicle sales tax. This flat rate applies statewide, making Texas one of the more straightforward states for vehicle tax calculations.
Texas Vehicle Tax Rates
- New Vehicle Rate: 6.25% of sales price
- Used Vehicle Rate: 6.25% of purchase price or standard presumptive value
- Private Party Sales: 6.25% of sales price or 80% of standard presumptive value
- Gift Tax: $10 for qualifying family members
Additional Texas Vehicle Fees
- Title Application: $28-$33
- Registration Fee: Based on vehicle type and county
- Inspection Fee: $7.50 (safety only) or $25.50 (safety + emissions)
- Local Fees: Vary by county
- Dealer Documentation: Varies by dealer
Texas-Specific Exemptions
- Gifts to qualifying family members ($10 gift tax)
- Even trades (tax only on price difference)
- Vehicles for disabled veterans
- Farm vehicles used primarily for agriculture
- Certain nonprofit organizations
Registration Requirements
- New Residents: Must register within 30 days
- New Purchases: Register within 30 days
- Insurance: Minimum liability required
- Inspection: Required annually
Money-Saving Tips in Texas
- Trade-in value reduces taxable amount
- Check if you qualify for family gift exemption
- Compare dealer fees across counties
- Consider timing with registration renewal
Common Questions About Texas Vehicle Tax
- Q: Is tax calculated before or after trade-in?
A: After trade-in value is deducted
- Q: Do I pay tax on a gifted vehicle?
A: Only $10 if gifted between qualifying family members
- Q: What about out-of-state purchases?
A: Texas tax applies when registering in Texas