taxes

Motor Vehicle – Sales and Use Tax

Motor Vehicle Tax Payment Extension During the COVID-19 Pandemic

Due to the COVID-19 pandemic, the Texas Comptroller of Public Accounts announced in March an extension of up to 90 days past the original due date to pay the motor vehicle tax due on a motor vehicle purchase. With the continuing requirement to practice safe social distancing and the Governor waiving certain rules relating to vehicle titling and registration at the Texas Department of Motor Vehicles, the Comptroller's office will continue the extension of the motor vehicle tax payment from the date of the most recent state disaster declaration from the Governor. Any tax penalty will be automatically waived if the tax payment is received within 60 days of the expiration of the state disaster declaration.

Note: The extension does not apply to seller-financed motor vehicle sales. In these cases, the motor vehicle tax is reported and paid directly to the Comptroller's office instead of a County Tax Assessor-Collector upon registration.

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 that were purchased from a private-party out of state. 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 tax 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.

A private party 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.

Titling and Registration Requirements

Motor vehicle sales tax is remitted to the local county tax assessor-collector's office with Form 130-U, Application for Texas Title and/or Registration (PDF). The form must be signed by the purchaser.

Late Registration Penalty

  • 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.

Additional Resources