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Buying a car out of state

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  • Buying a car out of state

    I'm sure this was discussed at some point on the old board but I didn't a search here and didn't find it. If I purchase a car out of state I don't pay sales tax in that other state but I pay sales tax when I register it here, right? Anything else I should know about this process?

  • #2
    Originally posted by jimithing View Post
    I'm sure this was discussed at some point on the old board but I didn't a search here and didn't find it. If I purchase a car out of state I don't pay sales tax in that other state but I pay sales tax when I register it here, right? Anything else I should know about this process?
    If you don't register it there you won't pay sales tax there. If you do register it there, you will pay sales tax there and if/when you later register it here you will only pay the difference between the Texas motor vehicle sales tax (6.25%) and that of the other state, if the other state's motor vehicle sales tax rate is less than Texas.

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