Texas charges a 6.25% motor vehicle sales tax on the purchase price, less any trade-in, paid to your county tax assessor-collector when you title the vehicle (Texas Comptroller, read October 2026). On a private-party used-car purchase the tax base is the greater of the price you paid or 80% of the vehicle's standard presumptive value (SPV), unless you provide a valid certified appraisal.
At a glance
Key Facts
Motor vehicle tax rate
6.25%
Private-party tax base
Greater of price or 80% of SPV
Pay within
30 days (60 for active-duty military)
New resident tax
$90
Introduction
Buying a car in Texas triggers a tax bill at titling. The Comptroller sets one statewide motor vehicle tax rate, and on a private sale it is paid to the county tax office rather than to the seller.
This guide explains how the tax is calculated for dealer sales and private sales, what the standard presumptive value rule does to a cheap private sale, the deadlines and penalties, and the special cases for new residents, gifts and out-of-state purchases, using the Texas Comptroller's own pages read on 29 October 2026.
Section 01
The Rate and What It Applies To
The Comptroller states: "The current motor vehicle tax rate is 6.25 percent." The rate has been 6.25 percent since 1991. The tax due is calculated at the rate in effect on the date you bought the vehicle in Texas or the date it was first brought into Texas for use here.
Situation
Tax base
Rate
Purchase from a licensed dealer
Sales price less trade-in (and dealer discounts)
6.25%
Private-party purchase in Texas
Greater of price paid or 80% of SPV (or a valid certified appraisal)
6.25%
Vehicle bought in another state and brought into Texas (Texas resident)
Sales price, less credit for sales or use tax paid to other states
6.25%
New resident bringing a vehicle previously registered in their name elsewhere
Flat amount instead of use tax
$90
Gift from a listed relative, guardian, estate or 501(c)(3) non-profit
Flat amount
$10
A trade-in reduces the taxable value of the purchase: the Comptroller says the value of a vehicle a seller receives as consideration for the purchase of another vehicle reduces the taxable value.
Section 02
Dealer Purchases: the Comptroller's Example
For retail sales involving licensed dealers, the tax is based on the sales price less any trade-in and dealer discounts. The Comptroller's own example is a $42,000 vehicle bought with a $15,000 trade-in:
Item
Amount
Total sales price
$42,000.00
Less trade-in
-$15,000.00
Taxable value
$27,000.00
Tax at 6.25%
$1,687.50
The dealer normally files the title application for you, so you do not pay the tax at the tax office yourself.
Section 03
Private-Party Purchases and the 80% SPV Rule
A private-party transaction is a sale where neither party is a dealer; it includes sales between family members, neighbors and businesses. The purchaser is responsible for the tax. The Comptroller sets the tax base as the greater of the sales price (total consideration) or 80 percent of the vehicle's SPV, unless a valid certified appraisal is provided.
SPV is a value set by the Texas Department of Motor Vehicles from a regional guidebook; the SPV shown to the public on the TxDMV website is 100 percent of the SPV, while the county tax office sees 80 percent. If you paid less than 80 percent of SPV you can lower the base with a certified appraisal that you present within 30 calendar days of the sale (60 for active-duty military, 30 after bringing the vehicle into Texas for out-of-state purchases).
Our illustration (6.25%)
Price paid
SPV
80% of SPV
Tax base
Tax
Price above 80% of SPV
$20,000
$22,000
$17,600
$20,000
$1,250
Price below 80% of SPV, no appraisal
$2,000
$5,000
$4,000
$4,000
$250
Price below 80% of SPV, appraisal accepted
$10,000
$25,000
$20,000
$12,000 (appraised)
$750
The second row follows the Comptroller's own SPV example, where the tax is based on 80 percent of a $5,000 SPV, or $4,000, because the purchaser did not provide a certified appraisal. The third row follows its example of a damaged car with a $12,000 certified appraisal. These tables are our arithmetic on the Comptroller's rules, not official calculations; your county tax office computes the actual amount.
TxDMV's buyer page summarises the private-party rule as the purchase price or SPV, whichever is highest. The Comptroller administers the tax and its guide sets the 80 percent threshold, so this guide follows the Comptroller.
Section 04
Deadlines, Penalties and Special Cases
When to pay: if the seller is not a Texas licensed dealer, you must title and register the vehicle and pay the tax to the county tax assessor-collector within 30 calendar days of the purchase date; active-duty military personnel have 60 calendar days.
Late penalty: a 5 percent penalty if tax is paid 1 to 30 days after the due date, and 10 percent if paid more than 30 days late.
Bought outside Texas: Texas residents owe 6.25 percent of the sales price when they bring the vehicle in, less credit for sales or use taxes paid to other states.
New residents: a $90 new resident tax is due in place of use tax on a vehicle brought into Texas, if the vehicle was previously registered in the new resident's name in another state or foreign country.
Gifts: a $10 gift tax applies to a person who receives the vehicle from a spouse, parent or stepparent, grandparent or grandchild, child or stepchild, sibling, guardian, decedent's estate, or a 501(c)(3) non-profit.
Where to pay: titles are transferred and tax is collected through the local county tax assessor-collector's office; title, registration and local fees are due on top of the tax.
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Is the Texas car sales tax 6.25% or higher with local tax?
The Comptroller states the motor vehicle tax rate as 6.25 percent, calculated on the purchase price (less any trade-in), with title, registration and local fees due in addition. It is collected by your county tax assessor-collector.
Q
How is tax calculated on a used car bought from a private seller?
On the greater of the price you paid or 80 percent of the vehicle's standard presumptive value (SPV), unless you present a valid certified appraisal within the deadline. The county tax office retrieves the SPV, and you can see the full SPV on the TxDMV website.
Q
Does a trade-in reduce Texas vehicle sales tax?
Yes. The Comptroller says the value of a vehicle a seller receives as consideration for the purchase of another vehicle reduces the taxable value. On a dealer sale the tax is based on the sales price less the trade-in and any dealer discounts.
Q
How long do I have to pay the tax after buying a car in Texas?
For a private-party sale you must title and register the vehicle and pay the tax to the county tax assessor-collector within 30 calendar days of the purchase date (60 for active-duty military). Late payment adds a 5 percent penalty for 1 to 30 days late and 10 percent after that.
Q
What is the Texas new resident tax on a vehicle?
A new resident who brings a vehicle into Texas that was previously registered in their name in another state or country pays a flat $90 new resident tax in place of use tax.
Q
What if I buy a car in another state and bring it to Texas?
A Texas resident owes 6.25 percent of the sales price as use tax, less credit for sales or use taxes paid to other states.
Q
Is there a tax when a car is given as a gift in Texas?
A $10 gift tax applies when the vehicle comes from a spouse, parent or stepparent, grandparent or grandchild, child or stepchild, sibling, guardian, decedent's estate or a qualifying non-profit, according to TxDMV.
Q
Where is the Texas vehicle sales tax paid?
Transfers of title and tax collection are handled by the local county tax assessor-collector's office. If you buy from a dealer, the dealer files the title application for you.
Disclaimer:This guide gives general tax information for educational purposes and is not tax, legal or financial advice. Rules, forms and deadlines are set by the authorities named here and can change; check the official sources linked in this guide and talk to a qualified tax professional about your own situation.