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Motor Vehicle Sales and Use Tax
Who is responsible for this tax?
A person who purchases a motor vehicle in Texas owes motor vehicle sales tax.
A Texas resident, a person domiciled or doing business in Texas, or a new Texas resident who brings into Texas a motor vehicle that was purchased or leased out of state owes motor vehicle use tax, the new resident tax or the gift tax, as applicable.
Private-Party Purchases and Standard Presumptive Values
Standard presumptive value (SPV) is used to calculate sales tax on private-party sales of all types of used motor vehicles purchased in Texas. It is also used to calculate use tax on motor vehicles brought into Texas. For more information, please see Private-Party Purchases and Standard Presumptive Values.
Rates
- Sales: 6.25 percent of sales price, minus any trade-in allowance. The taxable value of private-party purchases of used motor vehicles may be based on the standard presumptive value.
- Use:
- Texas residents – 6.25 percent of sales price, less credit for sales or use taxes paid to other states, when bringing a motor vehicle into Texas that was purchased in another state.
- New residents – $90 new resident fee due in lieu of use tax on a vehicle brought into Texas by a new resident, if the vehicle was previously registered in the new resident's name in another state or foreign country.
- Even exchange: $5
- Gift: $10
Due Date
The dealer will collect motor vehicle sales tax from the purchaser when a motor vehicle is purchased from a dealer in Texas, if the motor vehicle has a gross weight of 11,000 pounds or less. The tax is a debt of the purchaser until paid to the dealer. The dealer will remit the tax to the county tax assessor-collector.
The purchaser must remit the appropriate motor vehicle tax to the county tax assessor-collector as follows:
- within 30 calendar days of purchase for motor vehicle sales tax on private-party sales;
- within 30 calendar days from the date a vehicle purchased outside Texas is brought into Texas for motor vehicle use tax or the new resident use tax;
- within 60 calendar days from the date of purchase or first use in Texas for active duty military personnel;
- within 30 calendar days of purchase of a motor vehicle in Texas with a gross weight in excess of 11,000 pounds, if the dealer did not collect the tax;
- at the time of title transfer for the even exchange tax or the gift tax.
Motor vehicle sales tax is remitted to the local county tax assessor-collector's office with Form 130-U, Application for Texas Title(PDF). The form must be signed by the seller and purchaser.
Penalties and Interest
Penalties
- If tax is paid 1-30 days after the due date, a 5 percent penalty is assessed.
- If tax is paid over 30 days after the due date, a 10 percent penalty is assessed.
Interest
- Past due taxes are charged interest beginning 61 days after the due date.
- To calculate interest on past due taxes, visit Interest Owed and Earned.
Reporting and Payment Requirements
Select the amount of taxes you paid in the preceding state fiscal year (Sept. 1 – Aug. 31) to find the reporting and payment methods to use.
Less than $100,000
A paper report is the only available reporting method.
Select one of these payment methods:
$100,000 or more
A paper report is the only available reporting method.
TEXNET is the only acceptable payment method.
Discounts
0.5 percent for timely filing and paying plus 1.25 percent for prepaying.