The car sales tax in Texas is 6.25% of the vehicle's purchase price. However, the total tax you pay will likely be higher because local jurisdictions (cities, counties, and special purpose districts) can add their own taxes. This combined rate can reach up to 8.25%. You pay this tax, along with other fees, when you register the vehicle at your local County Tax Assessor-Collector's office.
The tax is calculated on the vehicle's standard presumptive value or the purchase price, whichever is higher. Texas uses this method to ensure tax is paid on a vehicle's fair market value, especially in private-party sales where the reported price might be artificially low.
Here’s a breakdown of how the total cost is calculated for a car with a $30,000 purchase price in a location with a 2% local tax:
| Fee Type | Calculation | Amount Due |
|---|
| State Sales Tax | 6.25% of $30,000 | $1,875 |
| Local Sales Tax | 2.0% of $30,000 | $600 |
| Total Sales Tax | 8.25% of $30,000 | $2,475 |
| Title Application Fee | Fixed Fee | $33 |
| Registration Fee | Variable (based on vehicle weight) | ~$50 - $80 |
There are specific exemptions. For example, if you trade in a car, the tax is only applied to the difference between the new car's price and the trade-in value. Buying from a direct family member (like a parent, child, or spouse) may also be exempt. Always check with the Texas Comptroller's office or your local county office for the most accurate and personalized information.
