How much are tax, title and license fees in Texas?

Cost of Tax, Title and License Fees on Vehicle Purchase in the Lone Star State

If you’ve been looking at offers on new vehicles and allowed your eye to wander down to the fine print, you may have seen a recurring phrase: “Tax, title and license fees not included.” How much do tax, title and license fees typically cost for a new vehicle in Texas?

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Fees one can expect to pay when buying a car in Texas are as follows:

  • Sales Tax: 6.25% of the total vehicle purchase price
  • Title Transfer Fee: $28 to $33 (varies by county)
  • Tag / License Fee: $51.75 base fee, $10 local fee

Adding the above figures together will get you the total tax, title and license fee expenditure that you can expect on your new ride! Since vehicles are sold at differing purchase prices, the sales tax amount will differ likewise.

How much are tax, title and license fees for a used car in Texas?

Title and license fees on a used car in Texas will typically cost $90 to $95. Sales tax is the same 6.25% as above. If the car is purchased at a private sale, the vehicle may be taxed on the purchase price or Standard Presumptive Value (SPV) of the car (whichever is higher). The SPV is calculated based on similar sales in the region.

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What other fees might I have to pay when purchasing a vehicle in Texas?

Other fees one may have to pay when buying a car include:

  • Transfer Registration Fee: $2.50
  • Vehicle Registration for New Residents: $90. This fee applies to a vehicle brought into the state by a new resident that was previously registered in the resident’s name in another state or foreign country.
  • Emissions Fee: 2.5% or 1%. The former fee applies to diesel vehicles from 1996 or before that weigh more than 14,000 pounds. The latter applies to diesel vehicles from the year 1997 and newer that are greater than 14,000 pounds.
  • Gift Tax: $10 on motor vehicles transferred to eligible relatives or non-profit organizations.
  • Vehicle History Report: The cost of a VHR varies by provider. The dealership may provide one for free. If not, check out Carfax or AutoCheck.

How much can dealers charge for documentation fees in Texas?

There’s no limit in Texas to how much dealerships can charge to cover administrative costs related to the title, registration and other paperwork. These fees, however, must be listed as part of the advertised vehicle price.