taxes

Motor Vehicle Tax Guide

Student Motor Vehicles with Out-of-State License Plates

Non-resident students attending colleges, universities or private high schools in Texas should contact the Texas Department of Motor Vehicles’ (TxDMV) regarding the use of their out-of-state license plate. This does not address their motor vehicle tax liability. Texas Department of Motor Vehicles’ (TxDMV) has reciprocity agreements with other states, however, these agreements do not address tax liability.

Taxability

Non-resident students moving to Texas owe the $90 new resident tax if they bring a motor vehicle registered in the student’s name in another state or foreign country; or bring a motor vehicle, leased in another state or foreign country prior to moving to Texas, into Texas for use. The lessor must have purchased the motor vehicle out of state.

Students that do not qualify as a new resident owe the 6.25 percent motor vehicle use tax. Credit will be given for tax legally paid to another state, Puerto Rico or any U.S. possession or territory.

96-254
(09/2021)