Texas has a 6.25% state sales tax on new and used vehicle purchases. The 6.25% is based on the selling price of the vehicle less any trade-in value.
Example 1: New vehicle without trade-in
$20,000 new Nissan
Your Texas state sales tax is $1,250
Example 2: New vehicle with trade-in
$20,000 new Nissan
$4500 trade in
$15,500 trade difference upon which the sales tax is figured at 6.25%
Your Texas state sales tax is $969, which is 6.25%
In Texas, unlike many other states, you only pay taxes on the trade difference.