Texas Car Sales Tax Calculator
- Car after trade-in
- Sales tax
The trade-in saves you $500.00 in sales tax compared with taxing the full price.
How the Texas car sales tax calculation works
Texas 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.
Start from the price
Use the agreed price. Manufacturer and dealer rebates paid to you come off before tax in Texas.
Subtract the trade-in
Texas taxes only the difference. A $32,000 car with an $8,000 trade-in is taxed on $24,000.
On a private sale, check the SPV
Tax is on the greater of the price or 80% of the standard presumptive value. Pay $10,000 for a car with a $25,000 SPV and you are taxed on $20,000, unless a certified appraisal shows a lower value.
Multiply by 6.25%
$24,000 × 6.25% = $1,500. Add the title and registration fees your county or dealer quotes.
Worked example. A $32,000 car from a dealer with an $8,000 trade-in is taxed on $24,000. At 6.25% the tax is $1,500.00, so the car plus tax comes to $25,500.00 before title and registration fees. On a private sale, a $10,000 car with a $25,000 SPV is taxed on $20,000: $1,250.00.
Texas Car Sales Tax FAQ
How much is sales tax on a car in Texas?
6.25% of the sales price minus any trade-in allowance. A $30,000 car with no trade-in carries $1,875 of tax; with a $10,000 trade-in it is $1,250.
Does Texas charge sales tax on the trade-in difference?
Yes. Texas taxes only the difference between the price and the trade-in allowance. The allowance is the value of the vehicle you trade, not your equity in it, so a loan still owed on it does not change the tax.
What is standard presumptive value in Texas?
SPV is the value Texas uses to work out sales tax on private-party sales of used vehicles. Tax is charged on the greater of the price you paid or 80% of SPV. The TxDMV website shows 100% of SPV, so multiply it by 0.8 to get the tax floor.
How do I pay less tax than the SPV says?
If you paid less than 80% of SPV, get a certified appraisal on Form 14-128 from a licensed dealer or insurance adjuster within 30 calendar days of purchase. Tax is then charged on the appraised value, but never less than the price you paid.
When is Texas car sales tax due on a private sale?
Within 30 calendar days of purchase, paid to your county tax assessor-collector when you title the car. Paying 1–30 days late adds a 5% penalty; more than 30 days late adds 10%. Active duty military have 60 days.
Are rebates and dealer fees taxed in Texas?
Manufacturer and dealer rebates passed directly to you reduce the taxable price. A separately stated documentary fee, fees required by law, and a separately stated extended warranty or service contract are not part of the taxable price.
What tax do I pay on a gifted car or an even trade in Texas?
An eligible gift of a vehicle pays a $10 gift tax, and an even exchange of two vehicles pays $5. New Texas residents pay a $90 new resident tax instead of use tax on a vehicle they bring with them. SPV does not apply to eligible gifts or even trades.
Sources: Texas Comptroller: Motor Vehicle Sales and Use Tax (checked 20 Oct 2026) · Texas Comptroller: Private-Party Purchases and Standard Presumptive Values · Texas Comptroller: Motor Vehicle Tax Guide (96-254), standard presumptive value · Texas Comptroller: Motor Vehicle Tax Guide (96-254), total consideration