Tesla SALES TAX in TEXAS

[jeffinplano]

I bought a Y recently...Am I reading this correct: I need to pay 6% TX sales tax on my Tesla(3800 bucks)at the DMV, to get the title???I thought the sales tax was included in the Tesla price based on what I saw while purchasing the Tesla online......... I don't think other states are this much...
Also can I do all this registering online or it needs to be in person at the DMV????

 

[LoudMusic]

Car seller does not collect the sales tax. Tax man knows they'd lie and never get all the tax money.

As far as doing it in person, yeah probably. First time is usually in person with cars. Renewals can often be done online.

Make it a long lunch. Enjoy your time at the DMV people watching. It's a weird world full of weird people.

 

[fetar30310]

Correct, you'll pay the sales tax at the DMV.

If you traded in a car, your sales tax will be calculated based on the difference in price [(Model Y price - trade in value )* 6%].

 

[ElectricIAC]

I bought a Y recently...Am I reading this correct: I need to pay 6% TX sales tax on my Tesla(3800 bucks)at the DMV, to get the title???I thought the sales tax was included in the Tesla price based on what I saw while purchasing the Tesla online......... I don't think other states are this much...
Also can I do all this registering online or it needs to be in person at the DMV????

Oh, my sweet summer child…

Anyhow. Yeah you can handle it yourself at your local tax assessor office or hit up TitleGirl (they used to do all the reg for Plano SvC before Q2 2020)

 

[TulsaCoker]

Jeff is this the first car you ever bought in Texas?

 

[EVer Hopeful]

I bought a Y recently...Am I reading this correct: I need to pay 6% TX sales tax

No, you are NOT correct

It's 6.25% actually

.

That's Sales Tax in Texas. In Dallas we pay 8.25% because they're allowed to add on a max of 2% for various things and I believe one of those percents goes towards DART (Dallas Area Rapid Transit for them as don't live here)

Don't forget that there's no income tax in Texas, so they have to get their money somehow. If you'd read the paperwork during the purchase process, you'd know this was in store for you

Finally, go to the one on LBJ at Hillcrest (SW corner if you really need to know). It's clean, efficient and costs less than any other Texas DMV

(that last bit was a joke of course)

 

[turns2stone]

No, you are NOT correct

It's 6.25% actually

.

That's Sales Tax in Texas. In Dallas we pay 8.25% because they're allowed to add on a max of 2% for various things and I believe one of those percents goes towards DART (Dallas Area Rapid Transit for them as don't live here)

Don't forget that there's no income tax in Texas, so they have to get their money somehow. If you'd read the paperwork during the purchase process, you'd know this was in store for you

Finally, go to the one on LBJ at Hillcrest (SW corner if you really need to know). It's clean, efficient and costs less than any other Texas DMV

(that last bit was a joke of course)

I'm also in Dallas. Do you mind looking at my thread here Texas question - tax savings on trade-in value?

Can you advise if Tesla supports the reduced tax liability on the full trade-in value?

I noticed in my app, there is no sales tax calculated, so should I expect to pay the sales tax (hopefully reduced via trade-in) at the DMV? I don't mind doing that, it's just confusing to me.

 

[turns2stone]

I talked to Tesla, and they said I do have to go to the tax office to pay the tax directly, and it will reflect the trade-in savings. So problem solved, I think!

 

[EVer Hopeful]

I've never traded in (craigslist is my friend!) but my understanding is that the amount of the trade-in is taken from the final price of the new purchase and tax is calculated on the remainder - so it's a Texas thing, not a Tesla thing. Tesla has no say in the matter ... but it looks like you've already figured that out

Go to the office at Hillcrest and LBJ, SW corner. It's very civilized

 

[Wamoosh]

Also curious about this. Our payment details for amount due include the language "Includes taxes, fees, trade-in, order fee and payments." We assumed that that included sales tax. If the "car seller does not collect the sales tax", what taxes are they referring to? TIA

 

[phlevcar]

Sales taxes are not included when purchasing a Tesla in Texas, so you'll need to handle it yourself. Don't worry, though; the process is quite simple.

Initially, I thought I had to visit the DMV. However, Tesla actually sends you a package containing all necessary documents. Once you receive the package, simply take it to your county's tax collector (mine was in Denton) to pay the taxes and sign the required paperwork. I decided to sign the documents on-site in case they needed to witness my signature.

I received the package on March 24th, just a week after taking delivery of my Tesla on March 17th. After paying the taxes, I got my plates immediately. Additionally, I contacted Titlegirl to inquire about their services. They can handle the process on your behalf, but they charge a $200 fee.

The entire process at the tax collector's office took me less than 30 minutes, and I made sure to schedule my appointment in advance to avoid any delays.

 

[MelsM3P]

Update..... Sales tax is Now included in your loan when purchasing a Tesla in Texas as of Nov 17th 2023 .. i thought something was wrong with my loan when i saw Sale Tax included in it , so i called and they explained it . about time !

 

[Alonzo]

Dealers have always had to collect sales tax on vehicles in Texas, and to complete the registration. Tesla was the exception, since technically they aren't a dealer. However, like MelsM3P stated, Tesla is now (since 11-17-23) collecting the taxes and fees and registering the vehicle like dealers do. I bought my MYLR on November 18, 2023 and they scrambled on the 17th to get my taxes and fees collected from me. I received the title and plates a couple weeks later.

I suspect that buyers were picking up in Texas and registering in other States and Texas was losing out on fees which made them make the change.

 

[Blackspots76]

I bought a Y recently...Am I reading this correct: I need to pay 6% TX sales tax on my Tesla(3800 bucks)at the DMV, to get the title???I thought the sales tax was included in the Tesla price based on what I saw while purchasing the Tesla online......... I don't think other states are this much...
Also can I do all this registering online or it needs to be in person at the DMV????

6.25% actually. That tax is applied to all vehicle sales (Note that city tax of up to 2% is not applied to vehicle sales). Since you can't buy the vehicle directly in Texas, and instead the sale occurs in a different state, then is transferred to Texas, you have to pay the sales tax.