How much is tax and title on a car in Texas?
When purchasing a car in Texas, the total cost includes more than just the sticker price. In addition to the 6.25% sales tax, buyers must pay a title fee, registration fee, and other local charges. Understanding these costs helps you budget accurately and avoid surprises at the dealership or county tax office.
Sales Tax on a Car in Texas
Texas applies a 6.25% sales tax on the purchase price of a vehicle. This tax is mandatory and does not vary by city or county.
Example Calculation:
If the car costs $25,000, the sales tax would be: $25,000 × 6.25% = $1,562.50
For a $40,000 vehicle, the sales tax would be $2,500.
Title Fee in Texas
The standard title fee for a vehicle in Texas is $33. This fee is required for both new and used car purchases and is paid to the Texas Department of Motor Vehicles (TxDMV) or a local county tax office.
Vehicle Registration Fees
Registration fees vary slightly based on vehicle type, but the standard passenger vehicle registration fee in Texas is $50.75.
Additional local fees may apply, such as:
County Road and Bridge Fees – Up to $10
Inspection Fees – Varies based on county and vehicle type (around $7.50–$30)
Dealer Documentation Fees – Can range from $50 to $150
Other Potential Costs
Emission Testing Fees – Required in certain counties, usually around $25–$30
Lien Recording Fees – If financing a vehicle, an additional $28 or $33 fee applies, depending on the county
Specialty License Plates – Optional but may cost anywhere from $30 to $200 per year
Final Thoughts
When buying a car in Texas, expect to pay 6.25% in sales tax, plus a $33 title fee, a $50.75 registration fee, and other minor county and state fees. Being aware of these costs upfront helps you plan better and avoid unexpected expenses during the car-buying process.