What is sales tax on a new car in the state of Texas?

Question

I thought that car sales tax was different from what regular sales tax is...

Answer 1

The transfer tax (which is technically a sales tax) is 6.25%. It doesn't include the local sales tax.

Again, I looked at the title form at the DMV site for Texas (and I've bought cars in this state!)--you pay 6.25%, NOT 8.25%.

6. FEES (MOTOR VEHICLE SALES TAX, TITLE FEE, REGISTRATION FEE, LOCAL FEE)

a. 6.25 % motor vehicle sales tax is due on the purchase price of the vehicle. (Less trade-in amount).

b. $28.00 title fee

c. Registration fee for a passenger vehicle is based on the year model.
2001 and older models $52.80
2002,2003 and 2004 models $62.80
2005 and newer models $70.80

d. Registration fee for a truck is based on the gross weight of the truck. Please call our office for assistance to determine the registration fee.

Answer 2

The Sales Tax will be 6.25%. The counties do not add their Sales Tax on vehicle purchases, but they do collect registration, title, and other fees when a vehicle is purchased new or used.

Answer 3

To be more specific, the state sales tax is 6.25%, city and county can add up to 2% of additional sales tax.

Answer 4

Sales taxes in Texas vary by location.

Most (but not all locations) are 8.25%.