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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 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.