figured someone on here knows the answer to a question the out of state dealer asked me. When buying a vehicle out of state and registering in Texas, is the sales tax calculated on the sale price of the new vehicle OR the difference between the trade in value and the new sale price? He asked about my County being different, so not sure if it varies by county as well.

Online, it seems like it's the difference in value but wanted to be sure. Thanks for any help!

New vehicle: you pay 6.25% on the difference between your new vehicle and trade in vehicle when you go to register the vehicle in your county of residence.

Used vehicle: you pay SPV when you go to apply for title and register the vehicle in your county of residence.

What if vehicles are equal value? I saw something about no tax if that's the case. I think it was one of the exemptions I read.

If the difference is $0, then $0x6.25%=$0.

You also pay on the price of the vehicle prior to rebates. So you buy a $45k truck, negotiate to $40k, then get a year end rebate from the manufacturer for another $5k and you pay $35k. You'll pay taxes on $40k.

The Wonderer said:

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New vehicle: you pay 6.25% on the difference between your new vehicle and trade in vehicle when you go to register the vehicle in your county of residence.

Used vehicle: you pay SPV when you go to apply for title and register the vehicle in your county of residence.

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Used private sale works like that but if you buy from a dealer, the price is based on that.