TX
Texas Vehicle Cost Guide 2026
Texas has no personal income tax and a 6.25% state sales tax on vehicle purchases. Cities and counties can add up to 2% local sales tax. The state offers a $2,500 EV tax credit for qualifying new electric vehicles. Texas does not require vehicle inspections (except for emissions in some counties). No-fault insurance is not mandatory.
State Sales Tax
6.25%
Vehicle purchases
Avg. Annual Insurance
$1,480
Full coverage
EV Tax Credit
$2,500
State-level
Registration Fee
$52
Annual
DMV / Registration Fees
| Title Transfer | $33 |
| License Plate Fee | $22 |
| Registration (Base) | $52 |
Insurance Requirements
No-Fault State: No
Inspection Required: No
Minimum Coverage:
Bodily Injury: $30,000 per person / $60,000 per accident
Property Damage: $25,000
Uninsured Motorist: Optional
County Tax Rates
Harris2.00%
Dallas2.00%
Travis2.00%
Bexar1.50%
El Paso1.50%
Total vehicle sales tax = state rate + county rate
Calculate Your Costs
Use our auto loan calculator with Texas tax rates to estimate your total vehicle costs.
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