Texas rules, verified against the statutes

Out-the-door price in Texas

How Texas works

Texas motor vehicle sales tax is a flat 6.25% statewide — no city or county add-ons on vehicles, so your rate is the same in every ZIP.
Your trade-in reduces the taxable amount (you're taxed on the “trade difference” — the vehicle's value, not your equity).
Manufacturer rebates passed to you are treated as a cash discount and REDUCE the taxable amount (Comptroller Guide 96-254) — the opposite of California.
Separately stated service contracts (VSC/extended warranty) and GAP are excluded from the taxable base in Texas — make sure they're itemized separately on your buyer's order.

Rules last verified Jul 6, 2026. Our methodology.

Try it for your ZIP

Vehicle price

The negotiated (or advertised) selling price, before fees and tax.

Your ZIP code

Tax and registration follow where YOU register — not the dealership.

Condition

New Used CPO

Fuel

EV/PHEV surcharges apply in many states.

More options — trade-in, rebates, doc fee, add-ons

Trade-in value

Reduces your taxable amount only in states that allow it.

Trade-in loan payoff

Display-only in the equity math — doesn't affect tax.

Manufacturer rebate

Taxed in some states, a tax-free discount in others.

Dealer discount

Off-invoice discount from the dealer — different from a rebate for tax.

Dealer doc fee (if quoted)

Leave blank to use your state's cap or the typical amount.

Dealer add-ons total

Nitrogen, VIN etch, protection packages… labeled negotiable in the output.

F&I products total (VSC, GAP…)

Excluded from tax in some states when itemized separately.

Model year

MSRP / vehicle value

Needed in states with value-based registration (AZ VLT, NV GST).

Financing the purchase I have a plate to transfer (matters in Florida — skips the $225 initial registration) Used vehicle's registration is good for 120+ days after purchase (California — renewal fees not due at sale)

My price already includes…

Some dealers now fold fees into the advertised price (FTC pressure; California's total-price law). Check what yours covers so nothing gets counted twice.

Doc fee Emissions / smog testing charge (used vehicles)

Texas OTD questions, answered

Does a trade-in reduce sales tax in Texas?

Yes — Texas taxes the difference: your trade-in's value is subtracted before tax is computed.

Are manufacturer rebates taxed in Texas?

No — rebates passed to you are treated like a cash discount and reduce the taxable amount.

Is the doc fee capped in Texas?

Yes — the cap is $225.00 (OCCC guidance eff. Jul 2024). A dealer may not exceed it.

Doc fees in all 50 states Registration fees by state