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Texas Car Loan Calculator with Trade-In Tax

Texas imposes a 6.25% motor vehicle sales tax on the purchase price of all vehicles, one of the standard state rates nationwide. Unlike some states, Texas offers a generous trade-in credit that reduces the taxable amount dollar-for-dollar, which can save you hundreds when upgrading your vehicle.

For a $30,000 car purchase in Texas with no trade-in, the 6.25% sales tax adds $1,875 to the price. If you trade in a vehicle worth $12,000, the taxable amount drops to $18,000, reducing the tax to $1,125 — a savings of $750. Texas also caps the sales tax on vehicles over $5,000 at $200 for casual (private party) sales between individuals.

Use the calculator below to model your Texas auto loan with sales tax and trade-in. Enter your local county tax rate (most counties add no additional vehicle tax) and trade-in value for an accurate estimate.

Vehicle & Loan Details

?Enter your vehicle price.
?The amount you plan to pay upfront when purchasing the home.
?Enter your trade-in value.
?The annual interest rate on your mortgage loan.
?The length of your mortgage in years. Common terms are 15 or 30 years.
End of inputs

Your Auto Loan Summary

Monthly Payment
$434.59

5 years

Loan Amount
$22,000.00

Financed principal

Total Interest
$4,075.40

Over 60 months

Total Paid
$26,075.40

Principal + interest

Sales Tax
$1,890.00

Paid upfront

Total Car Cost
$40,965.40

Down + trade + tax + payments

Down payment + trade-in: $13,000.00 (37.14% of price). Loan-to-value: 62.86%. Interest share of total paid: 15.63%.
Principal vs. Interest Breakdown
Monthly Payment by Loan Term
Amortization Schedule
MonthPrincipalInterestBalance

60 months · Showing 0 rows

Key Insights
Your combined down payment and trade-in of $13,000.00 is 37.14% of the vehicle price — at least 20%, which keeps you above water throughout the loan and reduces interest cost.
Your trade-in of $8,000.00 covers 22.86% of the vehicle price — substantial, reducing your loan by $8,000.00 and saving roughly $1,380.00 in interest over the term.
Your rate of 6.90% is in the typical range for current auto-loan market conditions. Improving your credit score by 30+ points typically unlocks 0.5%–1% lower rates.
Your 5-year term is in the standard range for auto loans — balances monthly affordability against interest cost. Total interest of $4,075.40 over the life of the loan is typical.
Total interest of $4,075.40 is a moderate share of the vehicle price — typical for a 4–5 year loan at market rates. Use the amortization table to see how extra payments could reduce it further.

Frequently Asked Questions

What is the Texas sales tax on a car?

Texas charges a 6.25% motor vehicle sales tax on the purchase price, applicable statewide with no additional local surtaxes on vehicles. On a $30,000 car, the tax is $1,875. For private-party (casual) sales, Texas limits the maximum sales tax to $200 for vehicles priced over $5,000 — a significant savings compared to dealership purchases. Dealer purchases always use the full 6.25% rate.

How does the Texas trade-in tax credit work?

Texas allows a dollar-for-dollar trade-in credit. If you buy a $30,000 car and trade in a vehicle worth $12,000, you only pay 6.25% tax on $18,000 ($1,125) instead of $30,000 ($1,875) — saving $750. This makes trading in at a dealership more tax-efficient than selling privately and buying separately. The trade-in value is the dealer's assessed value, not your target price.

Are there additional Texas vehicle purchase fees?

Beyond the 6.25% sales tax, Texas charges a title fee ($33), registration fee ($50.75-$65.75 depending on vehicle weight), a vehicle inventory tax (dealer-passed, typically $50-$150), and a documentation fee (not regulated in Texas, often $150-$400). These are typically due at signing. Some dealers allow you to roll these into the loan, increasing your monthly payment.

Is it cheaper to buy a car in Texas or California?

Texas is generally cheaper. Texas sales tax is 6.25% vs California's 7.25%-9.5%+. On a $30,000 car with no trade-in, Texas tax is $1,875 vs $2,175-$2,850 in California. Texas also has lower registration fees and no state income tax. However, private-party buyers in Texas benefit from the $200 tax cap, which doesn't exist in California. Always compare total cost (price + tax + fees), not just sticker price.

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