Texas › Sales tax
Texas car sales tax: 6.25% and what it applies to
How the Texas rate is set
- Texas charges 6.25%, and that rate is the same everywhere in the state — no county or city adds to it on a vehicle purchase.
What sits inside the taxable amount
- Taxed on top of the vehicle price: the dealer doc fee and dealer-installed accessories.
- Not part of the taxable amount: extended warranties and service contracts.
- Your trade-in comes off before tax is calculated.
What's specific to Texas
- 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.
Run your own numbers
Common questions
What is the car sales tax rate in Texas?
6.25%, statewide, with no local add-on for vehicles.
Is the doc fee taxed in Texas?
Yes. The doc fee is added to the price before tax is calculated, so it costs you slightly more than its face value.