Texas car tax
Texas has no yearly car tax for personal vehicles. Owners pay registration and inspection fees. A car purchase is taxed at 6.25% motor vehicle sales tax, with no local addition.
No yearly car tax; only registration fees.
Buying a car in Texas: one-time tax
Texas motor vehicle sales and use tax — 6.25%. Your trade-in is subtracted before tax.
A used private-party sale is taxed on the higher of the price or 80% of standard presumptive value. New residents pay a flat $90 new-resident tax.
Registration and due dates
Base registration is $50.75 plus a county local fee of up to about $31.50, an inspection fee, and a processing fee. EVs pay $200 extra. A title costs about $28–$33.
No yearly car tax. Registration renews every year with the inspection.
Cut what your car costs in Texas
Car tax is set by your town, but your loan and insurance aren't. Refinancing a car loan at a lower rate often saves more each year than the tax itself.
Questions
Does Texas have a yearly car tax?
No. Personal cars are not subject to property tax in Texas. Only registration fees apply.
What is standard presumptive value?
A value the state uses for private used-car sales. Tax is charged on the higher of the price or 80% of that value.
Can I deduct Texas car taxes on my federal return?
Generally no. Texas has no yearly value-based car tax, and flat registration fees cannot be deducted as personal property tax. Sales tax on the purchase can be deducted instead of income tax if you itemize.
Sources
Last checked October 14, 2026. Rates are for passenger cars owned by individuals; leased, business and specialty vehicles can differ. Confirm with your tax collector or commissioner of the revenue.