Used car sales tax and dealer fees in Texas
Texas charges a flat 6.25% motor vehicle sales tax statewide, with no local add-on. A dealer trade-in is deducted from the price. Private-party sales are taxed on the price or 80% of the car's standard presumptive value, whichever is higher.
By the LotGauge team
The short answer
Texas charges a flat 6.25% motor vehicle sales tax statewide, with no local add-on. A dealer trade-in is deducted from the price. Private-party sales are taxed on the price or 80% of the car's standard presumptive value, whichever is higher.
How the rate works in Texas
Texas charges one statewide motor vehicle sales tax of 6.25%. City and county sales taxes don't apply to the car, so the rate is the same in Houston, Dallas, Austin and San Antonio.
You pay it when the car is titled through your county tax assessor-collector. A dealer usually collects it and files the title paperwork for you.
Does a trade-in lower the tax in Texas?
The tax is 6.25% of the sales price minus any trade-in allowance, so a trade-in to the selling dealer lowers your tax.
Buying from a private seller in Texas
Private-party sales are taxed on the actual sales price or 80% of the car's standard presumptive value (SPV), whichever is higher. The SPV is a state-set value for each vehicle, and the county tax office works it out on the day you title the car.
If you paid less than 80% of the SPV because the car is in poor condition, a certified appraisal made within 30 days of the purchase can be used instead.
Example: a $25,000 car with a $5,000 trade-in in Houston
At Houston's rate (6.25%), the tax on a $25,000 used car from a dealer with a $5,000 trade-in is about $1,250. Without the trade-in it would be about $1,562.50, so the trade-in saves about $312.50 in tax.
6.25% of $20,000 (the $25,000 price minus the $5,000 trade-in) is $1,250. Without a trade-in it would be 6.25% of $25,000, or $1,562.50. Open this example in the calculator, then change the price, trade-in and ZIP to your own.
Dealer doc fees in Texas
On top of tax, dealers charge a documentation ("doc") fee for paperwork. The average doc fee in Texas is about $227, against a national average of $471 (CarEdge, State of Dealer Fees 2026).
Texas doesn't set a hard cap, but presumes a doc fee of up to $225 is reasonable (the amount Texas presumes reasonable on a financed sale). A dealer charging more has to be able to justify it.
The LotGauge calculator checks any doc fee you enter against the Texas average and the legal limit. See also how to get the out-the-door price.
Related guides
How sales tax works on a used car · The trade-in tax credit by state · Private seller vs. dealer · How to read a buyer's order
Sources
Texas Comptroller, Motor Vehicle Sales and Use Tax. Texas Comptroller, Private-Party Purchases and Standard Presumptive Values. Harris County Tax Office, Buying a Used Motor Vehicle. Doc fee averages: CarEdge, State of Dealer Fees 2026; doc fee limit: Texas official source. Checked November 2026. Tax figures are examples for a typical dealer purchase, not tax advice; confirm the exact amount on your purchase contract.