The sale, rental, or use of a motor vehicle in the state of Texas generally is subject to tax. The sale of a new motor vehicle is taxed at a rate of 6.25% of the total consideration paid for the vehicle. The sale of a used motor vehicle is taxed at a rate of 6.25% of the vehicle’s standard presumptive value. The purchase of a motor vehicle outside of Texas for use on the public highways of Texas by a Texas resident or someone domiciled or doing business in Texas is subject to tax at a rate of 6.25% of the total consideration paid for the vehicle. And, the gross rental receipts for a motor vehicle are subject to tax at a rate of 10% for vehicles rented for not more than 30 days and at a rate of 6.25% for gross rental receipts from the rental of a motor vehicle for longer than 30 days.
If you have any questions about motor vehicle sales, rental and use tax, please give us a call.