The short answer
Texas charges 6.25% motor vehicle sales tax. At a dealer, it is 6.25% of the price minus your trade-in. In a private sale of a used car, it is 6.25% of the price you paid or 80% of the car's standard presumptive value (SPV), whichever is higher. A few situations pay a flat tax instead: $90 for new residents, $10 for qualifying gifts and $5 for even trades.
Buying from a dealer
The dealer collects the tax when you buy (for vehicles of 11,000 pounds or less) and sends it to your county tax assessor-collector. The taxable amount is the sales price minus any trade-in allowance.
Example: $30,000 car with a $10,000 trade-in
Taxable price: $30,000 − $10,000 = $20,000. Tax: 6.25% × $20,000 = $1,250.
Buying from a private seller: the 80% SPV rule
The standard presumptive value is a value the Texas Department of Motor Vehicles sets for each used vehicle, based on average private-party sale prices in a regional guidebook. It does not account for condition. You can look it up with the TxDMV's SPV calculator using the VIN.
| If you paid… | Tax is based on… |
|---|---|
| At least 80% of the SPV | What you paid |
| Less than 80% of the SPV | 80% of the SPV |
| Less than 80% of the SPV, with a valid certified appraisal | The appraised value |
Note that the TxDMV website shows 100% of the SPV. The 80% figure is what the county uses.
Example: a used car with an SPV of $15,000
80% of $15,000 is $12,000.
- You paid $13,000 (more than $12,000): tax = 6.25% × $13,000 = $812.50.
- You paid $8,000 (less than $12,000), no appraisal: tax = 6.25% × $12,000 = $750.00, not the $500 you might expect.
When an appraisal helps
If the car is worth less than the SPV suggests, for example because of damage or high mileage, a certified appraisal can lower the tax. The rules:
- It must be on Form 14-128, filled out completely and unaltered.
- It must come from a dealer licensed for that kind of used vehicle, or a licensed insurance adjuster.
- You must get it and present it within 30 calendar days of the sale (60 days for active-duty military).
- The appraised value can't be lower than the price you paid.
- If you already paid tax on the SPV, a favorable appraisal within 30 days lets you ask for a refund with Form 14-202.
An appraisal usually costs money, so it only pays off when the gap is big. The Comptroller's own example (Motor Vehicle Tax Guide, SPV Examples, Example 2): a buyer paid $10,000 for a car with an SPV of $25,000. Without an appraisal, tax would be on $20,000. A $300 dealer appraisal valued it at $12,000, so tax was on $12,000.
When SPV doesn't apply
The SPV rule does not apply to dealer sales, even trades, qualifying gifts, unrepaired salvage vehicles, abandoned vehicles, vehicles sold through storage or mechanic's liens, sales by government entities, or vehicles eligible for classic, custom or street rod plates.
Flat taxes instead of 6.25%
| Situation | Tax |
|---|---|
| New resident bringing a vehicle already registered in their name in another state or country | $90 |
| Qualifying gift (from certain relatives, a guardian, a spouse, a decedent's estate, or a 501(c)(3) nonprofit) | $10 |
| Even exchange of vehicles | $5 |
A transfer for no money that doesn't qualify as a gift is taxed as a sale, based on the SPV.
Deadlines and penalties
A private-party buyer must pay the tax within 30 calendar days of the purchase (60 days for active-duty military). The same 30 days applies to use tax on a vehicle brought into Texas. Late payment adds a penalty:
- 1 – 30 days late: 5%
- More than 30 days late: 10%
Bought it in another state?
Texas residents who buy a vehicle outside Texas owe 6.25% use tax on the sales price, minus credit for sales or use tax already paid to another state.
Frequently asked questions
Can I avoid the SPV by writing a low price on the bill of sale?
No. If the price is below 80% of the SPV, the county taxes you on 80% of the SPV anyway. The only way to be taxed on less is a valid certified appraisal.
Does a trade-in lower the tax in a private sale?
The Comptroller describes the trade-in credit for purchases where a trade-in allowance is given, which is how dealer sales work. In a private sale with no trade-in, tax is on the price or 80% of SPV.
Is there a Texas calculator on this site?
Yes. Our Texas calculator applies the 80% SPV rule for private sales and the trade-in credit for dealer sales, and adds the registration and title fees.
Run the numbers
General information, not tax or legal advice. Fees and tax rules change; confirm with the agency listed before you pay.