Texas charges a 6.25% state motor vehicle sales tax, which applies to:
- New and used vehicles
- Dealer and private-party purchases
- Out-of-state vehicles brought into Texas within 30 days
Tax is calculated on the purchase price or standard presumptive value (SPV)âwhichever is higher. SPV applies primarily to private-party used vehicle sales (Texas Comptroller â Motor Vehicle Tax).
Key facts:
- No local or county-level vehicle tax
- Collected at time of title transfer
- Trade-in credits allowed only with dealerships
Vehicles gifted to certain family members may be exempt
Example: Texas Vehicle Sales Tax Costs
Below is an estimate of what youâll pay in sales tax based on vehicle purchase price:
| Vehicle Price | Sales Tax Rate | Estimated Tax | Total Cost with Tax |
|---|---|---|---|
| $30,000 | 6.25% | $1,875 | $31,875 |
| $50,000 | 6.25% | $3,125 | $53,125 |
| $75,000 | 6.25% | $4,687.50 | $79,687.50 |
| $100,000 | 6.25% | $6,250 | $106,250 |
How Texas Compares to Other States
Texas falls in the middle tier of states for vehicle tax ratesâbut has no cap, meaning luxury vehicle buyers are hit especially hard.
- California (Los Angeles County): 9.5% â $100,000 = $9,500 tax (California Department of Tax and Fee Administration â Rates)
- Florida (Miami-Dade): 7% with a $5,000 cap â max ~$700 tax (Florida Department of Revenue)
- New York (Yonkers): 8.875% â $100,000 = $8,875 tax (New York Department of Taxation â Sales Tax Rates)
- Montana: 0% â No vehicle sales tax (Montana Department of Justice â Vehicle Registration)
If youâre buying a vehicle for $75,000 or more, a Montana registration through Ride Legal could save you $4,000 to $10,000 or more.
What You Still Pay in Texas
Along with the 6.25% sales tax, Texas buyers must pay:
- Title fee: $33
- Registration fee: ~$50.75 (standard vehicle)
- Local county road and bridge fees: $10
- Inspection fee: Varies
(Source: Texas DMV â Fees)
10 Ways to Reallocate Your Tax Savings
Hereâs how smart buyers put their $5,000+ in savings to work:
- Upgrade to a performance or limited trim
- Apply ceramic coating or paint protection film
- Install lift kits, off-road packages, or premium wheels
- Add infotainment or driver-assist features
- Purchase an extended vehicle warranty
- Outfit your RV or trailer with solar, HVAC, or appliances
- Cover insurance and registration for 1â2 years
- Take delivery on a road trip or motorsport event
- Add a second vehicle or enclosed trailer
- Prep for resale with professional detailing and documentation
Why Use Ride Legal
Ride Legal helps Texas buyers legally register vehicles in Montana, where there is no vehicle sales tax and a flat registration system. We handle everything from LLC formation to plate renewal, so you stay compliant and save big.
We specialize in:
- Montana LLC formation
- Title and registration services
- Support for exotic, RV, overland, and business vehicles
- Legal documentation and compliance across all 50 states
Our clients routinely save $3,000 to $15,000+, all while remaining fully compliant with both state and federal law.
Frequently Asked Questions About Texas Vehicle Sales Tax
Q: What is the vehicle sales tax rate in Texas?
A: Texas charges a flat 6.25% motor vehicle sales tax (Texas Comptroller â Vehicle Tax).
Q: Do private sales get taxed?
A: Yes. All salesâprivate or dealerâare taxed using the purchase price or SPV.
Q: Can I deduct a trade-in?
A: Only on dealership transactions. Trade-in value is not credited for private sales.
Q: Can I avoid the tax by registering elsewhere?
A: Yesâmany buyers use a Montana LLC through Ride Legal to register legally in a tax-free state.
Skip the 6.25% in Texas â Save Big with Ride Legal
Texas is great for big trucks, but not for big tax bills. Ride Legal helps you keep more of your money by registering your vehicle legally in Montana, where thereâs no sales taxâsaving thousands on every purchase.
Visit Ridelegal to start saving today.
