Find the current Texas Car Sales Tax, and also check the current sales tax rate for Texas cities. The Car Sales Tax Rates includes the state sales tax, and the county & city taxes.
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What is the Car Sales Tax in Texas?
The current Texas State Sales Tax Rate is 6.250%, and has been in place since 1961. If you include the county taxes and the local taxes the total sales tax rate is between 6.250% and 8.250%. Texas has a origin-based sales tax, and the sales tax rates are determined by the location of the vendor, not by the location of the buyer.
The trade-in is taxed in Texas?
When you trade in your old vehicle you get a tax break, and you will be only taxed on the difference between the new car and your trade-in car. If your new car price is $30,000 and you get $10,000 for your trade-in car, you’ll be taxed on the amount you pay, or $20,000, in this case, saving you $700 if the car sales tax is 7%.
Rebates and incentives are taxed?
Rebates and incentives you receive when buying a new car are not taxed in Texas, this means that you will pay the tax on the difference between the full price of the vehicle and the rebate.
Car purchases in Texas are also subject to other fees like registration, title, and plate fees, with an average of around $90 for this fees.
Dealerships are also charging a documentation fee (doc fee), that covers the costs of preparing and filing the sales contract & documents, etc. The average doc fee is around $150, with no limit to this doc fees a dealer can charge, according to the Texas law.
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We strive to offer the most accurate car tax rates available, but the sales tax rate are subject to change, and you should also check your local government tax offices for the current city, county, and state tax rates. No warranty is made as to the accuracy of information provided.