Texas Auto Loan Calculator
Work out your Texas car payment with the 6.25% motor vehicle tax built in, the tax saved by a trade-in at a dealer, and the 80% standard presumptive value rule for private-party used cars.
Texas auto loan calculator
Texas car sales tax: 6.25% motor vehicle tax
Texas charges a 6.25% motor vehicle sales tax on cars bought from a dealer or a private seller (Texas Comptroller, Motor Vehicle Tax Guide). When you buy from a dealer, the tax is on the price minus your trade-in allowance, so a trade-in lowers the tax as well as the loan. Example: a $35,000 car with a $10,000 trade-in is taxed on $25,000: $1,562.50 in tax instead of $2,187.50, saving $625. With $3,000 down at 7% for 60 months, the amount financed is $23,562 and the payment is $466.57.
Private-party used cars: the 80% SPV rule
On a private sale the tax is figured on the greater of the price you paid or 80% of the vehicle's standard presumptive value (SPV), a value the state sets for each used vehicle. Paying $12,000 for a car with an $18,000 SPV means tax on $14,400: $900.00, not $750. If you paid less than 80% of SPV because of the car's condition, you can use a certified appraisal (Form 14-128) obtained within 30 days instead, but never below the price you paid. Look up the vehicle's SPV with the state's SPV lookup before you buy.
Texas auto loan: what to add on top
Your county tax office also collects title and registration fees, and dealers add documentary fees; these vary, so enter what your contract or tax office shows in the fees box. If you owe more on your trade-in than it's worth, the difference (negative equity) is added to the loan here. Compare a shorter term in the table: on most loans, every extra year adds hundreds of dollars of interest.
For other states, use the car payment calculator; for a used car from a dealer with credit-score APRs, see the second hand car loan calculator.
Common questions
What is the sales tax on a car in Texas?
6.25% motor vehicle sales tax, on the price minus any trade-in when you buy from a dealer.
Does a trade-in reduce sales tax in Texas?
Yes, on dealer purchases the tax is figured on the price less the trade-in allowance.
How is tax figured on a private-party used car in Texas?
On the greater of the price paid or 80% of the standard presumptive value (SPV), unless a certified appraisal applies.
Sources
- Texas Comptroller: Motor Vehicle Tax Guide (96-254)
- Texas Comptroller: Private-party purchases and standard presumptive value
- Texas Comptroller: Motor vehicle sales and use tax
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General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.