The tax, title, and license fees for a used car in Texas can vary depending on several factors, including the purchase price of the vehicle and the county where you live.
| Fees | Amount | Description |
| Sales Tax | 6.25% of purchase price | Tax on the purchase of a used car |
| Title Transfer Fee | $33 | Fee to transfer the title of the car to the new owner |
| Vehicle Inspection | $20 — $40 | Inspection of the vehicle to ensure it meets the standards required by the state |
| Temporary Tags Fee | Varies by location | Fees for temporary license plates, if needed |
| License Plate Fees | Varies by location and vehicle type | Fees for the license plates, which can vary depending on the type of vehicle and the length of the registration period |
| Dealer documentation fee | Varies by dealership | A fee to cover the cost of preparing the necessary documents for the sale of the vehicle |
| Registration fee | Varies by location | A one-time fee to register the vehicle in your name |
| Advertising fee | Varies by dealership | Some dealerships may charge a fee to cover the cost of advertising the vehicle |
| Finance charges | Varies by lender and loan | Interest on the loan, if financing the vehicle |
| Extended warranty fee | Varies by dealership and warranty | Some dealerships may offer an extended warranty on the vehicle, which will come with an additional fee |
| Dealer added options | Varies by dealership | Some dealerships may charge additional fees for additional features or customization options they have added to the vehicle before selling |
- Sales Tax: You will be required to pay 6.25% of the sales price as sales tax.
- Title Transfer Fee: The title transfer fee is $33, which is charged by the state to transfer the title of the car to the new owner.
- Vehicle Inspection: Vehicle inspection is required in Texas. This fee can vary depending on where you live, but it usually costs around $20 to $40.
- Temporary tags fee: If you need temporary tags, there will be a fee for them which can vary depending on the dealership, local county tax office or the title and registration service center.
- License Plate Fees: A one-time fee for license plates, which can vary depending on the type of vehicle you own, the county you live in and the length of the registration period.
Calculation Example
To calculate the tax, title, and license fees on a new car in Texas that costs $25,000, you can use the following calculations:
- Sales Tax: The sales tax in Texas is 6.25% of the purchase price. So, for a car that costs $25,000, the sales tax would be 6.25% x $25,000 = $1,562.50
- Title Transfer Fee: The title transfer fee in Texas is $33.
- Vehicle Inspection: The inspection fee can vary depending on the location, but it usually costs around $20 to $40.
- Temporary tags fee: The fee for temporary tags can vary depending on the dealership, local county tax office or the title and registration service center. It’s usually around $5 — $20.
- License Plate Fees: The license plate fees will vary depending on the type of vehicle, the county you live in, and the length of the registration period. It will usually range between $50 and $150 or more.
Therefore, the total cost of tax, title, and license fee on a new car in Texas that costs $25,000 would be around $1,562.50+$33+$20-$40+$5-$20+$50-$150 = $1,662.50 to $1,812.50 approximately. It’s important to note that these are general guidelines and the specific fees will vary depending on the local county tax office or the title and registration service center you visit, and the type and price of the vehicle. It’s always best to contact your local county tax office or the title and registration service center for more detailed information on the tax, title, and license fees for a used car in your area.
How Much Can Dealers Charge for Documentation Fees in Texas
There is no maximum or set amount for documentation fees that dealers can charge in Texas.
Texas state law does not regulate, restrict or put a cap on the amount of document fee that dealers can charge.
Texas dealerships are free to charge whatever they want.
The cost can vary by dealership and by vehicle.