What is the vehicle sales tax rate in Texas?

Texas charges a base motor-vehicle sales tax of 6.25% of the purchase price. That works out to about $62.50 of tax per $1,000 of price before any trade-in credit.

Does a trade-in reduce Texas car sales tax?

Yes. Texas applies the 6.25% rate to the price minus your trade-in value, so a trade-in lowers the taxable amount. On a $30,000 car with a $5,000 trade-in you are taxed on $25,000, which is $1,562.50 at 6.25%.

How much tax will I pay on a $30,000 car in Texas?

With no trade-in, 6.25% of $30,000 is $1,875.00. With a $5,000 trade-in the taxable amount drops to $25,000 and the tax is $1,562.50.

Are dealer fees or rebates taxed in Texas?

This calculator uses the base 6.25% state rate on the net price after trade-in. Manufacturer rebates, documentation fees, and local add-on taxes can change the exact figure, so treat the result as a close estimate.

Is the 6.25% rate the only tax I pay in Texas?

The 6.25% figure is the statewide base motor-vehicle rate. Some Texas purchases also carry local or county add-ons plus title and registration fees, which this tool does not include. Confirm the total with the Texas Comptroller of Public Accounts.

Texas Vehicle Sales Tax Calculator

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The Texas Vehicle Sales Tax Calculator estimates the sales tax you will owe when buying a car in Texas. Texas levies a base motor-vehicle sales tax of 6.25% on the purchase price. Like most states, Texas gives you a trade-in credit, so the tax is charged on the price after subtracting the value of any vehicle you trade in.

How it works

The tax is a flat percentage of the taxable amount, which is the price minus your trade-in:

taxableAmount = price - tradeIn
salesTax      = taxableAmount x 0.0625   (6.25%)
total         = price + salesTax

At 6.25%, every $1,000 of taxable price adds about $62.50 of tax. The trade-in lowers the taxable amount but you still pay the full negotiated price to the dealer; the calculator shows the out-the-door total as price plus tax.

Example

Buy a $30,000.00 car and trade in a vehicle worth $5,000.00 in Texas:

taxableAmount = $30,000.00 - $5,000.00 = $25,000.00
salesTax      = $25,000.00 x 0.0625 = $1,562.50
total         = $30,000.00 + $1,562.50 = $31,562.50

So you owe about $1,562.50 in Texas sales tax and pay roughly $31,562.50 before title and registration.

Notes

This is an estimate only and not tax or financial advice. The 6.25% base rate is statewide, but local or county add-on taxes, documentation fees, manufacturer rebates, and title/registration costs can change your final bill. Confirm the exact amount with the Texas Comptroller of Public Accounts or your dealer. All math runs in your browser — nothing is sent anywhere.