Texas dealers

Texas used car dealer paperwork and sales tax guide

How Texas sales tax works on a used-car deal, how trade-ins and dealer fees are treated, and the title forms and notices a Texas dealer prints.

Last checked November 14, 2026

This is a plain-language summary of how a used-car deal works out in Texas: the sales tax, what happens to a trade-in, how dealer fees are treated, and the paperwork a dealer prints. DMS Apex uses these same rules to work out each Texas deal.

Texas tax and fees at a glance

ItemTexas
State tax6.25% motor vehicle sales tax
Who pays itCollected by the dealer
Trade-inReduces the tax
Documentary feeNot part of the taxable amount
Service contractNot taxed
Starting title fee in DMS Apex$33 ($28 in some counties)

How Texas motor vehicle sales tax is worked out

Texas charges 6.25% on the sales price less the trade-in allowance. The documentary fee, service contract and the state's title and registration fees are not part of the taxable amount when they are stated separately. The documentary fee notice is required wording on the Buyer's Order.

Texas paperwork a dealer prints

DMS Apex prints these documents for a Texas deal, all in black and white:

  • Form 130-U Title and/or Registration Application
  • Buyers Guide

Step-by-step form guides

  • Form 130-U Title and/or Registration Application: how to fill it out

This is general information, not legal or tax advice. Texas rules change: confirm current requirements with the Texas Department of Motor Vehicles or the Texas Comptroller of Public Accounts.

Common questions

How much is sales tax on a used car in Texas?

6.25% motor vehicle sales tax. A trade-in reduces the taxable amount. See the table above and confirm the current rate with the Texas Department of Motor Vehicles or the Texas Comptroller of Public Accounts.

Does a trade-in lower the tax in Texas?

Yes. In Texas the trade-in allowance reduces the amount the tax is figured on.

Is the dealer fee taxed in Texas?

No. In DMS Apex the documentary fee is not part of the taxable amount for Texas.

Does DMS Apex print Texas dealer forms?

Yes. It prints Form 130-U Title and/or Registration Application, Buyers Guide.

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