Texas Dealer Resources
In Texas, motor vehicle sales tax must be paid for every retail sale of a motor vehicle. This tax applies to various types of transactions, such as installment sales, credit sales, and exchanges involving motor vehicles for property, services, or money. It’s important to note that even if a transfer of a motor vehicle occurs without payment and does not qualify as a gift, it is still considered a retail sale and is subject to the 6.25 percent motor vehicle tax. The seller is responsible for collecting and remitting the motor vehicle sales tax to the Texas Comptroller’s office. By complying with this requirement, individuals and businesses contribute to the state’s revenue system, supporting various government programs and services.