Is a motor vehicle exempt from sales and use tax in texas?

A motor vehicle purchased in Texas for exclusive use outside of Texas is exempt from motor vehicle sales tax. A person who buys a motor vehicle in Texas owes motor vehicle sales taxes. The presumptive standard value (SPV) is used to calculate private sales tax on all types of used motor vehicles purchased in Texas. It is also used to calculate the tax on the use of motor vehicles brought to Texas and purchased from an individual outside the state.

For more information, see Purchases with individuals and presumptive standard values. The dealer will collect motor vehicle sales tax to the purchaser when a motor vehicle is purchased from a Texas dealer, if the motor vehicle has a gross weight of 11,000 pounds or less. The tax is payable by the purchaser until it is paid to the dealer. The grantee will remit the tax to the county's tax-appraiser.

A resident of Texas, a person domiciled or doing business in Texas, or a new resident of Texas who brings a motor vehicle purchased or leased out of the state to Texas must pay motor vehicle use tax, new residence tax, or gift tax, as appropriate. Unfortunately, there's no easy way to list the taxes and fees for every city and county in the state of Texas (at least without complicating things). As established by the Texas Department of Motor Vehicles, anyone who purchases a vehicle within the state's borders must pay sales tax for that purchase. The current state tax for cars (subject to change) is 6.25% and applies to the final sales price of the car.

Glenna Penrod
Glenna Penrod

Freelance web fanatic. Avid coffee evangelist. Professional internetaholic. Proud travel fanatic. Incurable writer.