When buying a car, you’ll need to account for various taxes and fees that apply in Texas. Knowing these costs can help you plan your budget more effectively.
When buying a luxury car from Ed Hicks Imports in Corpus Christi, you’ll need to account for various taxes and fees that apply in Texas. Whether you’re buying a new Mercedes-Benz or a Certified Pre-Owned vehicle, understanding these costs will help you plan your budget more effectively. Here’s a breakdown of the taxes and fees you can expect when purchasing a car in Texas.
Since regulations can change as legislation changes, please confirm these tax amounts when doing your own due diligence before buying a car. You can also give our team a call for the latest sales tax percentages. Sales tax percentages can also differ if you buy a car in Texas but reside elsewhere.
In Texas, the state imposes a 6.25% sales tax on the purchase price of the vehicle. This tax is calculated based on the sales price or the Standard Presumptive Value (SPV)—whichever is higher. The SPV is a calculated value determined by the Texas Department of Motor Vehicles and is based on the market average for vehicles of similar make and model .
For example, if you’re buying a Mercedes-Benz C-Class for $50,000, the state sales tax would be:
$50,000 x 6.25% = $3,125 in sales tax.
Some counties or cities in Texas may apply additional local sales taxes. However, the total sales tax (state + local) is capped at 8.25%. This means that if your area imposes a local tax, it will typically not exceed 2%.
When purchasing a vehicle, you are required to transfer the title to your name, which costs approximately $33 in Texas. This title fee ensures the car is officially registered under your ownership.
Every vehicle in Texas must be registered, and this fee is based on the car’s weight. For most passenger vehicles, the registration fee ranges from $50.75 to $60.75. This cost is typically due when registering the vehicle with the Texas Department of Motor Vehicles (DMV).
Texas law requires that most vehicles undergo a state safety inspection and an emissions test to ensure the vehicle complies with state standards. If the car you’re buying hasn’t been inspected recently, you may need to pay for an inspection, which generally costs around $25.50.
If you’re new to Texas and registering an out-of-state vehicle, you’ll need to pay a $90 new resident fee. This applies only to new Texas residents transferring their vehicle registration from another state.
When buying from a dealership like Ed Hicks Imports, you may also encounter some additional fees such as documentation fees for processing paperwork. These standard fees help facilitate administrative activity and filing on your behalf. You may ask for a breakdown of these charges during your purchase.
Knowing the taxes and fees involved helps you better plan for your purchase, whether you’re buying a brand-new luxury car or a pre-owned model. At Ed Hicks Imports, we make the process smooth by helping you understand and calculate all associated costs upfront, ensuring there are no surprises when it’s time to finalize your vehicle purchase.
Visit Ed Hicks Imports in Corpus Christi to explore our lineup of new and pre-owned Mercedes-Benz vehicles. Our expert finance team is here to guide you through the entire process, including helping you understand the taxes and fees associated with your purchase. Schedule a test drive or stop by today!
Sources:
