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State Guide Last verified July 5, 2026

Texas Car Sales Tax, Trade-In Credit, and Out-of-State Rules

What the desk and the buyer each need to know when a Texas deal crosses state lines: the rate, the trade-in math, the exemption paperwork, and the drive-home tags. Every fact links to the official source.

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Every fact sourced to Texas official publications below

Short answer

Texas taxes vehicle sales at 6.25%, no local add-ons. Texas taxes the price after the trade-in is deducted. Texas exempts out-of-state buyers only under specific conditions: the vehicle must not be used in Texas except for transportation directly out of state and must not be registered in Texas; the buyer issues the dealer Form 14-312 at the time of sale Texas credits sales tax legally paid to another state, so the same dollars are not taxed twice. This covers a retail purchase from a dealer; leases and private-party sales follow different rules in most states.

Texas car sales tax quick facts

Last verified July 5, 2026
Sales tax rate on vehicles6.25%, no local add-ons[1]
Trade-in creditTexas taxes the price after the trade-in is deducted.[1]
Selling to an out-of-state buyerTexas exempts out-of-state buyers only under specific conditions: the vehicle must not be used in Texas except for transportation directly out of state and must not be registered in Texas; the buyer issues the dealer Form 14-312 at the time of sale[2]
Credit for tax paid to another stateTexas credits sales tax legally paid to another state, so the same dollars are not taxed twice.[1]
Dealer doc feeCap: Not yet verified against an official source. Confirm with the Texas Comptroller of Public Accounts. Official site → · not taxable[3]
Temp tag for the drive homeSince July 1, 2025 (HB 718), Texas dealers issue metal license plates at the time of sale instead of paper temporary tags. A buyer who will register the vehicle in another state gets the dealer-issued Out-of-State Buyer plate, valid for 60 days. (valid 60 days)[4]
Out-of-state buyer registrationSomeone moving to Texas has 30 days from the move to register the vehicle, handled through the county tax assessor-collector's office.[5]
General information, not tax or legal advice. Rates and rules change. Before you write a check, confirm with the Texas Comptroller of Public Accounts or your accountant. Last verified July 5, 2026. Covers retail dealer sales; leases and private-party sales follow different rules in most states.

From the desk

Texas runs the cleanest flat math in the country until the paperwork meets the county. One statewide rate on vehicles, but every deal clears through the county tax assessor-collector and webDEALER, so the desk lives by the county's calendar, not Austin's.

Selling to an out-of-state buyer in Texas

Texas exempts out-of-state buyers only under specific conditions: the vehicle must not be used in Texas except for transportation directly out of state and must not be registered in Texas; the buyer issues the dealer Form 14-312 at the time of sale[2]

The paperwork that makes the exemption real is Form 14-312, Texas Motor Vehicle Sales Tax Exemption Certificate – For Motor Vehicles Taken Out of State, completed at delivery. Miss it and the exemption is the dealer's problem, not the buyer's.

Either way, the desk still owns the rest of the cross-border chain: the title work, the temp tag, and making sure the deal doesn't go quiet while paperwork sits. Tracking every in-flight title, temp tag, and out-of-state registration is exactly what Voltra's title tracking is for.

Buying in Texas from out of state

If you live in another state and buy in Texas, the deciding rule is where the vehicle gets registered: your home state's tax applies at registration, and what happens at the Texas sale depends on the row above. Texas credits sales tax legally paid to another state, so the same dollars are not taxed twice.[1]

Registration and temp tags

Someone moving to Texas has 30 days from the move to register the vehicle, handled through the county tax assessor-collector's office.[5] Since July 1, 2025 (HB 718), Texas dealers issue metal license plates at the time of sale instead of paper temporary tags. A buyer who will register the vehicle in another state gets the dealer-issued Out-of-State Buyer plate, valid for 60 days. Validity: 60 days.[4]

Bordering states

Cross-border deals from Texas most often involve Arkansas, Louisiana, New Mexico and Oklahoma. Every pair works differently: check both states’ rules before you write a check.

Vehicle-type exceptions

Diesel-powered on-road vehicles over 14,000 lbs gross registered weight owe a TERP surcharge on top of the motor vehicle tax, paid with it at titling: 1% of total consideration for model years 1997 and later, 2.5% for older models.[6]

Sources

  1. comptroller.texas.gov/taxes/motor-vehicle/sales-use.php · verified 2026-07-05
  2. comptroller.texas.gov/taxes/publications/96-254/oos-mv-transports.php · verified 2026-07-05
  3. comptroller.texas.gov/taxes/publications/96-254/total-consideration.php · verified 2026-07-05
  4. www.txdmv.gov/dealers/HB718 · verified 2026-07-05
  5. www.txdmv.gov/motorists/new-to-texas · verified 2026-07-05
  6. comptroller.texas.gov/taxes/motor-vehicle/terp-surcharge.php · verified 2026-07-05

Texas car sales tax questions

Texas taxes vehicle sales at 6.25%, no local add-ons. The rate applies to the taxable price the dealer computes at the desk, which is where trade-in treatment and doc fees matter.

Texas taxes the price after the trade-in is deducted. That treatment changes the taxable price, so the same car and the same trade produce different tax bills in different states.

Texas exempts out-of-state buyers only under specific conditions: the vehicle must not be used in Texas except for transportation directly out of state and must not be registered in Texas; the buyer issues the dealer Form 14-312 at the time of sale The exemption runs on Form 14-312, Texas Motor Vehicle Sales Tax Exemption Certificate – For Motor Vehicles Taken Out of State, completed at delivery.

Texas credits sales tax legally paid to another state, so the same dollars are not taxed twice.

The doc fee is not taxed.