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
| Item | Texas |
|---|---|
| State tax | 6.25% motor vehicle sales tax |
| Who pays it | Collected by the dealer |
| Trade-in | Reduces the tax |
| Documentary fee | Not part of the taxable amount |
| Service contract | Not 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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