Motor Vehicle Sales and Use Tax
A tax is levied on all retail sales of motor vehicles in Texas and motor vehicles purchased at retail outside the state and used on Texas public highways by a Texas resident or an individual domiciled or doing business in this state.
Important Notice: New Exemption Requirement for Commercial Agriculture and Timber Operations
House Bill 268, passed during the 82nd Regular Legislative Session (2011), requires that a person claiming an exemption from sales tax on the purchase of certain items used in the production of agricultural and timber products must provide a registration number issued by the Comptroller of Public Accounts on the exemption certificate issued to the seller. For more information, please visit Texas Taxes for Agriculture and Timber Industries.
Private-Party Purchases and Standard Presumptive Values
Standard Presumptive Value (SPV) is used to calculate sales tax on private-party sales of all types of used motor vehicles purchased in Texas. It is also used to calculate use tax on motor vehicles brought into Texas. For more information please visit Private-Party Purchases and Standard Presumptive Values.
Rate Details and Other Information
Sales: 6 1/4 % (.0625) of sales price, minus any trade-in allowance. The taxable value of private-party purchases of used motor vehicles maybe based on the Standard Presumptive Value.
Use: Texas residents — 6 1/4 % (.0625) of sales price, less credit for sales or use taxes paid to other states, when bringing a motor vehicle into Texas that was purchased in another state.
New residents — $90 new resident fee due in lieu of use tax on a vehicle brought into Texas by a new resident, if the vehicle was previously registered in the new resident's name in another state or foreign country.
Even Exchange: $5
Motor vehicle sales and use tax remitted to the County Tax Assessor-Collector (TAC).
Private Party Purchasers must remit motor vehicle sales tax within 30 calendar days of purchase.
Motor vehicle use tax or the $90 new resident use tax is due within 30 calendar days from the date a vehicle purchased outside Texas is brought into Texas.
The $5 Even exchange tax and $10 gift tax is due at time of title transfer.