Texas Car Loan & Lease Guide 2026
Everything you need to know about buying or leasing a car in Texas (TX) — sales tax, loan rates, incentives, and free calculators.
Texas Car Sales Tax (2026)
Texas state sales tax is 6.25%. Local sales taxes can add up to 2%, with a maximum combined rate of 8.25%. This is a constitutional cap.
Official Texas DMV: www.txdmv.gov/
Texas Car Buying Incentives & Programs (2026)
Texas offers no state EV rebate. Federal tax credit up to $7,500 applies. Tesla (based in TX) buyers can order directly. Lightning strikes may affect comprehensive insurance in some areas.
Quick Car Affordability Calculator — Texas
Estimate how much car you can afford in Texas, including sales tax (6.25% state rate).
Texas Car Buying FAQ
What is the sales tax on a car in Texas?
The state sales tax in Texas is 6.25%. With local taxes, the total rate ranges from 6.25% to 8.25%. This means buying a $35,000 car in Texas could cost $2188–$2888 in sales tax alone.
What is the average car loan rate in Texas?
The average auto loan rate in Texas is approximately 7.2% (based on the state's average credit score of 695). Rates vary by credit score: 750+ can get 5–7%, 650–749 pays 7–10%, and below 650 may see 10%+.
Are there EV incentives in Texas?
Texas offers no state EV rebate. Federal tax credit up to $7,500 applies. Tesla (based in TX) buyers can order directly. Lightning strikes may affect comprehensive insurance in some areas.
How much car can I afford in Texas?
Use the calculator above to estimate your budget. As a rule of thumb, your total car payment (loan + insurance) should not exceed 15–20% of your monthly take-home pay. In Texas, remember to factor in the 6.25% state sales tax when calculating your total budget.