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Texas car sales tax at a glance
| Texas | |
|---|---|
| Tax | motor vehicle sales and use tax |
| State rate | 6.25% |
| Counties and cities add tax | No |
| Trade-in lowers the tax | Yes, tax is on the price minus the trade |
| Leases | Its 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.