How car sales tax works in Texas
Texas charges a flat 6.25% motor vehicle sales tax. Cities and counties do not add local sales tax on cars, so the rate is the same everywhere in the state.
- Trade-in credit: the value of your trade-in is subtracted before tax, with no cap.
- Rebates passed to you by the manufacturer or dealer also reduce the taxable price.
- A separately stated doc fee is not taxed. Texas has no fixed cap, but fees of $225 or less are presumed reasonable.
- Private sales use the SPV rule: you pay tax on the price, unless it is below 80% of the car's standard presumptive value. Then you pay on 80% of the SPV, unless you get a certified appraisal.
- Flat taxes: $90 for new residents bringing a car already registered in their name, $10 for gifts from eligible family members, and $5 for an even exchange.
Title and registration fees in Texas
| Fee | Amount |
|---|---|
| Title fee | $28 or $33 |
| Registration (passenger car / light truck) | $50.75 |
| Local county fee | $0 – $31.50 |
| TexasSure fee | $1.00 |
| Processing & handling | $4.75 |
| Inspection program replacement fee | $7.50 |
| Electric vehicle fee | $200 / year |
The title fee is $33 in counties that do not meet federal air-quality standards (like Harris, Dallas or Tarrant) and $28 elsewhere. Registration stays with the car in Texas, so if you buy a used car with a current sticker you usually pay only tax and title now.
Example: a $32,000 new car in Harris County
Price $32,000.00, $1,000.00 manufacturer rebate, $8,000.00 trade-in and a $225.00 doc fee, bought from a dealer:
| Motor vehicle sales tax (6.25%) | $1,437.50 |
| Title fee | $33.00 |
| Registration fee | $50.75 |
| Local county fee | $11.50 |
| TexasSure fee | $1.00 |
| Processing & handling fee | $4.75 |
| Inspection program replacement fee | $7.50 |
| Total taxes | $1,437.50 |
|---|---|
| Total government fees | $108.50 |
| Out-the-door price | $32,771.00 |
| After the trade-in, you pay | $24,771.00 |
Common mistakes
- Adding local city sales tax (Texas only charges the 6.25% state rate on vehicles).
- Paying tax on a private sale price that is far below the SPV without getting an appraisal.
- Accepting a doc fee well above $225 without asking for the dealer's cost justification.
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