Calculating Texas Sales Tax

1 | Page

Travis County Tax Office

Texas residents are required to pay 6.25% sales tax to the state of Texas when purchasing a

vehicle. If sales tax was paid in another state, the vehicle owner will get credit for the sales tax

already paid on the vehicle and will pay the difference between the rates when titling the vehicle

in Texas. Use the following to determine how much is owed:

Proof of Sales Tax Paid Sales Tax Due

Bill of sale includes an itemized sales tax

collection that is 6.25% or more

No sales tax is due to the state of Texas. Provide

proof of sales tax paid by submitting the itemized

bill of sale.

Bill of sale is not itemized or no sales tax has

been paid to the state where the vehicle was

purchased

Sales tax is calculated using the following formula:

(Vehicle Price – Trade in Value) x 6.25%.

Example: The vehicle was purchased for $29,500

and there was a trade in value of $5,400.

Step 1: Calculate the amount subject to tax

29,500 – 5,400 = 24,100

Step 2: Multiply the result by .0625%

24,100 x .0625

Sales Tax Due in Texas = $1,506.25

Provide proof of sales tax paid by submitting the

itemized bill of sale along with $1,506.25.

Bill of sale includes an itemized sales tax

collection that is less than 6.25%

Sales tax is calculated using the following formula:

(Vehicle Price - Trade in Value) x (6.25% -

percent paid to your state)

Example: The vehicle was purchased for $29,500

and there was a trade in value of $5,400. Your

state collected 4% sales tax.

Step 1: Calculate the amount subject to tax

29,500 – 5,400 = 24,100

Step 2: Calculate the difference in tax rates

.0625 - .04 = .0225

Step 3: Multiply by the amount subject to tax

by the new tax rate

24,100 x .0225 = $542.25

Provide proof of sales tax paid by submitting the

itemized bill of sale along with $542.25.

2 | Page

Travis County Tax Office

Registration Fee Schedule for Travis County

Estimated registration costs of Texas vehicles:

$76.25 - Passenger Vehicles and Light Trucks weighing up to 6,000 pounds

$79.50 - Trucks 6,001 - 10,000 pounds

$68.75 - Trailers 6,000 pounds or less

$54.75 – Motorcycles

Mail the title & registration application package and proper fees to:

Travis County Tax Office

P.O. Box 149326

Austin, TX 78714-9326

Note: If you would like a copy of the completed paperwork, enclose a note and return label from

your dealership.