Menu
For kidsColoring pages with your business name
Sales tax & VAT / Car Sales Tax Calculator

Car Sales Tax Calculator

The sales tax on a new or used car and the out-the-door amount after a trade-in and fees, at the tax rate you enter.
$

Enter a number of at least 0

Agreed price after any dealer discount.

$

Enter a number of at least 0

Many states give this credit; Texas does. Some, such as California, tax the full price. Check your state's motor vehicle agency.

%

Enter a number from 0 to 20%

Example: 6.25%, the Texas motor vehicle sales tax rate. Enter your own state vehicle tax plus any local tax.

$

Enter a number of at least 0

Treated as not taxed. Some states, such as California, tax the dealer doc fee.

Out-the-door amount
$25,900.00
$1,500.00sales tax
$24,000.00taxable amount
$0due $25,900.00
  • Car after trade-in
  • Sales tax
  • Fees
Vehicle price$32,000.00
Trade-in−$8,000.00
Sales tax · 6.25% of $24,000.00+$1,500.00
Doc, title and registration+$400.00
Amount due$25,900.00

The trade-in credit saves you $500.00 in sales tax compared with taxing the full price.

See breakdown

How the car sales tax calculation works

  1. Start from the agreed price

    Use the price after dealer discounts. Manufacturer rebates are taxed differently by state, so leave them in the price unless your state says otherwise.

  2. Subtract the trade-in if your state allows it

    Many states, including Texas, tax only the difference. A $32,000 car with an $8,000 trade-in is taxed on $24,000.

  3. Multiply by your combined rate

    $24,000 × 6.25% = $1,500. Use the state vehicle rate plus any county or city tax.

  4. Add the fees

    Doc, title and registration fees are added on top to give the out-the-door price. Here they are treated as untaxed; some states, such as California, tax the dealer doc fee.

Worked example. A $32,000 car with an $8,000 trade-in is taxed on $24,000. At 6.25% the tax is $1,500.00. Add $400 of fees and the amount due is $25,900.00. Without the trade-in credit the tax would be $2,000.00.

Car Sales Tax FAQ

How do I calculate sales tax on a car?

Take the price, subtract the trade-in if your state allows it, and multiply by the combined tax rate. $24,000 × 6.25% = $1,500.

Does a trade-in reduce sales tax?

In many states, yes. Texas, for example, charges 6.25% of the sales price minus the trade-in allowance. California does not: a $20,000 car with a $4,000 trade-in is taxed on the full $20,000.

Do I pay sales tax on a used car from a private seller?

Usually yes. The tax is normally paid when you title and register the car. In Texas you pay it to the county tax assessor-collector, and the state's standard presumptive value can set the taxable amount on a private-party sale.

Which state's tax do I pay if I buy out of state?

Usually the state where you register the car. A dealer may collect it, or you pay it when you register. Rules on credit for tax paid to another state vary, so check your home state's motor vehicle agency.

Are dealer fees taxed?

It varies. Title and registration fees are usually not taxed, but some states tax the dealer documentation fee. California, for example, taxes doc fees. Check your state's rules.

How much is sales tax on a car?

It is the taxable price times your state and local vehicle tax rate. In Texas the rate is 6.25%, so a $30,000 car with no trade-in carries $1,875 of tax. Rates and rules differ by state, so enter your own rate above.

What is the out-the-door price of a car?

The total you pay to drive away: the agreed price, minus any trade-in, plus sales tax and the doc, title and registration fees. In the example above it is $25,900. Subtract your down payment to see how much you finance.

Sources: Texas Comptroller: Motor Vehicle Sales and Use Tax · CDTFA publication 34: Motor Vehicle Dealers (trade-ins, doc fees)

Related calculators

Sales Tax CalculatorAdd sales tax to a price at your state's base rate, or type your own combined rate to include city and county tax.Reverse Sales Tax CalculatorWork back from a total that already includes sales tax to the price before tax and the tax amount, at any rate.Vehicle Depreciation CalculatorEstimate what a car, van or truck will be worth after each year you own it, from its price and a yearly decline rate.Equipment Loan CalculatorMonthly payment and total interest on an equipment loan after your down payment, and the full cost of the machine.Lease vs Buy CalculatorCompare the cash cost of leasing equipment with buying it on a loan over the same term, counting what you can sell it for at the end.Texas Car Sales Tax CalculatorTexas motor vehicle sales tax on a new or used car: 6.25% of the price minus your trade-in at a dealer, or the standard presumptive value rule on a private sale.