Texas vehicle registration fees and taxes

The Texas Comptroller lists a 6.25% motor vehicle sales-tax rate. For a dealer purchase, a qualifying motor-vehicle trade-in can reduce the taxable sales price. For a Texas resident bringing in a vehicle purchased in another state, use tax can apply at 6.25%, with allowable credit for qualifying tax paid to another state.

Do not assume that every amount on a dealer contract is part of the taxable vehicle price. Title, registration and other separately stated charges can be treated differently. For a specific deal, use the Comptroller's current guidance or professional tax advice rather than estimating from the sticker price alone.

For many private-party used-vehicle purchases, Texas does not automatically accept a low bill-of-sale amount as the tax base. The Comptroller says tax is generally calculated on the greater of the actual sales price or 80% of the vehicle's standard presumptive value (SPV), unless an exception applies.

A timely certified appraisal can establish a different taxable value in qualifying cases. SPV does not apply to every transfer; dealer sales, salvage vehicles, eligible gifts, qualifying even trades and several other categories are treated differently.

A qualifying new Texas resident generally pays a $90 new-resident tax instead of the 6.25% use tax when the vehicle was purchased outside Texas and was previously registered in that resident's name in another state or foreign country. The Comptroller's rules distinguish that situation from a vehicle purchased after the move or a vehicle not previously registered in the new resident's name.

The tax is paid to the county tax assessor-collector as part of the title and/or registration transaction. Timing and military rules can differ, so confirm eligibility rather than assuming every out-of-state vehicle qualifies for the $90 treatment.

The Texas Comptroller lists a $10 gift tax when a vehicle is transferred without consideration to an eligible recipient under the motor-vehicle gift rules. Eligible relationships and qualifying nonprofit or trust transfers are specifically defined. Transfers that do not satisfy the gift rules can instead be treated as taxable sales and may be subject to SPV.

The Comptroller also lists a $5 tax for qualifying even exchanges. Estate transfers received on or after September 1, 2025 have separate treatment under updated Texas law, so inherited vehicles should be checked against the current estate-transfer guidance rather than ordinary gift rules.

TxDMV lists an additional $200 annual registration fee for fully electric cars and trucks with a gross vehicle weight of 10,000 pounds or less. A qualifying new electric vehicle receiving an initial two-year registration is assessed $400. Standard registration and other applicable charges still apply.

The fee does not apply merely because a vehicle is a hybrid. Confirm how TxDMV classifies the vehicle before budgeting the transaction.