CarOutlay

Car ownership costs in Texas

What it costs to own a car in Texas beyond the sticker price — sales tax, annual registration, vehicle property tax, inspection requirements, and title fee.

Estimated — not yet source-verified.Estimated — not yet source-verified. This figure is a knowledge estimate we have not yet confirmed against the official source, so this page is not indexed. Treat it as a rough guide only and verify with your state DMV or department of revenue.

Vehicle sales tax
0.0625%
Texas state motor vehicle sales tax is 6.25%; local (city/county) can add up to 2%. Trade-in value reduces taxable amount.
Annual registration fee
~$51/yr
Annual registration ~$51.75 for passenger vehicles.
Vehicle property tax
No vehicle property tax
No annual personal property tax on vehicles.
State inspection
Required
Annual safety inspection required; most counties also require emissions testing. Combined fee approximately $25.50.
Title fee
~$33
One-time fee at purchase. Amount may vary.
Example: $35,000 vehicle
Sales tax: $22
+ $51/yr registration + no property tax

How state fees affect your car's true cost in Texas

When you buy a vehicle in Texas, the first state cost you'll face is the sales tax of 0.0625%. On a $35,000 vehicle, that's roughly $22 due at the time of purchase — in addition to the dealer's price.

After the purchase, Texas charges an estimated $51 per year to register the vehicle. Annual registration ~$51.75 for passenger vehicles.

Texas does not impose a personal property tax on vehicles — which is a meaningful advantage over states that do, where owners can pay 0.5%–2% of the vehicle's value annually.

Texas requires periodic vehicle inspections. Annual safety inspection required; most counties also require emissions testing. Combined fee approximately $25.50. Inspection fees are typically $20–$70 depending on the station and vehicle type.

Calculate your full 5-year ownership cost in Texas

The TCO calculator pre-fills Texas's sales tax and registration fee. Add your purchase price, loan terms, fuel type, and insurance to see the complete picture.

Open TCO calculator

Frequently asked questions

What is the car sales tax in Texas?

The vehicle sales tax rate in Texas is 0.0625%. On a $35,000 vehicle that works out to roughly $22 at the time of purchase. Texas state motor vehicle sales tax is 6.25%; local (city/county) can add up to 2%. Trade-in value reduces taxable amount.

How much is vehicle registration in Texas?

The estimated annual vehicle registration fee in Texas is around $51 per year. Annual registration ~$51.75 for passenger vehicles.

Does Texas have a vehicle property tax?

No. Texas does not impose an annual personal property tax on vehicles. No annual personal property tax on vehicles.

Is a vehicle inspection required in Texas?

Yes. Texas requires periodic vehicle safety (and in some areas emissions) inspections. Annual safety inspection required; most counties also require emissions testing. Combined fee approximately $25.50.

Other states

See all 50 states + D.C. →