Texas Auto Loan & Sales Tax Calculator
Calculate your Texas auto loan monthly payment and vehicle sales tax. Texas charges 6.25% on vehicle purchases.
Texas Sales Tax Rules
Texas charges 6.25% state sales tax on vehicles. Trade-in credit applies. Texas has no local additions to vehicle sales tax (unlike general retail) — 6.25% is the final statewide vehicle tax rate regardless of city or county.
Source: Tex. Tax Code § 152.021
Frequently Asked Questions
What is the vehicle sales tax rate in Texas?
Texas charges a 6.25% state sales tax (called Motor Vehicle Sales and Use Tax) on vehicle purchases under Tex. Tax Code § 152.021. Unlike general retail sales, Texas does not allow local governments to add to this rate — 6.25% is the uniform statewide rate for all vehicle purchases.
Does Texas reduce sales tax for trade-ins?
Yes. Texas allows a trade-in credit — the trade-in value is subtracted from the vehicle purchase price before the 6.25% motor vehicle tax is applied.
Do Texas cities or counties add vehicle sales tax on top of the state rate?
No. Texas vehicle sales tax is set at 6.25% statewide, and local governments cannot add to this rate for vehicle purchases. This is different from general retail sales, where local taxes can push the combined rate to 8.25% — vehicle purchases are capped at 6.25% regardless of location.
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This tool is for informational and educational reference only and does not constitute financial advice. Calculations are estimates based on the inputs provided and state average data. Actual results will vary. Always consult a licensed financial advisor before making financial decisions.