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Texas car sales tax

Texas car sales tax calculator

Texas charges 6.25% state motor vehicle sales and use tax on cars. Your trade-in lowers the tax. Work out the tax, your out-the-door price and your payment below.

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New or used

Credit

Scores 660 to 719. The rate fills in; change it if you have a quote.

Term

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Texas's rate.

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$

Estimated payment

$488/mo

72 months at 9.7% APR

Car price
$30,000
Sales tax
$1,563
Down and trade-in
−$5,000
Amount financed
$26,563
Total interest
$8,580
Total cost
$40,142

An estimate, not an offer of credit. Your rate depends on your credit and the lender.

On this page

Texas car sales tax at a glance

Texas
Taxmotor vehicle sales and use tax
State rate6.25%
Counties and cities add taxNo
Trade-in lowers the taxYes, tax is on the price minus the trade
LeasesIts own rule (see leasing below)
Dealer doc fee cap$225

Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.

How to work out Texas sales tax on a car

Multiply the taxable price by the rate. In Texas the trade-in comes off first.

A $30,000 car with a $5,000 trade: $25,000 x 6.25% = $1,562.50 at the state rate.

Flat 6.25% statewide; no local motor vehicle sales tax. The general local sales tax average (8.20% combined) does not apply. Used vehicles are taxed on the price or 80% of standard presumptive value, whichever is higher (private and used-dealer rules per TxDMV).

Trade-ins

The purchaser can deduct the value of the traded vehicle from the selling price when the trade is part of the same transaction and goes directly to the seller (Comptroller: $25,000 less $10,000 trade taxed on $15,000).

Leasing a car in Texas

Texas taxes the lessor's purchase of the vehicle (6.25% on the lessor's price, paid at titling); no tax is due on the lessee's lease payments. In practice the lessor's tax is usually passed into the lease price. The calculator taxes the price at signing, the nearest fit; check the lease contract. The lease calculator uses Texas's method when you pick the state.

Dealer doc fees

Not a hard cap: $225 is the documentary fee presumed reasonable under OCCC rule 7 TAC 84.205 (raised from $150 in 2024); a dealer may charge more only after filing a cost analysis with OCCC. A 2026 rule revision was in precomment draft in May 2026.

Common questions

What is the sales tax on a car in Texas?

The state rate is 6.25%. Flat 6.25% statewide; no local motor vehicle sales tax. The general local sales tax average (8.20% combined) does not apply. Used vehicles are taxed on the price or 80% of standard presumptive value, whichever is higher (private and used-dealer rules per TxDMV).

Does a trade-in reduce sales tax in Texas?

Yes, tax is on the price minus the trade. The purchaser can deduct the value of the traded vehicle from the selling price when the trade is part of the same transaction and goes directly to the seller (Comptroller: $25,000 less $10,000 trade taxed on $15,000).

How is a car lease taxed in Texas?

Texas taxes the lessor's purchase of the vehicle (6.25% on the lessor's price, paid at titling); no tax is due on the lessee's lease payments. In practice the lessor's tax is usually passed into the lease price.

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