Insurance Navy Brokers - Houston Explains Texas Car Sales Tax

TX based Insurance Navy Brokers - Houston has published a blog post explaining the car sales tax laws in Texas. The firm provides non-standard auto insurance and other financial products and services, including homeowners insurance, renters insurance, and roadside assistance to clients across the United States.

As the company explains, those who are thinking about buying or selling a car in Texas should make sure that they are well acquainted with the car sales tax. Statistically, car sales represent the second largest purchase made by individuals throughout the state of Texas, and the government has imposed taxes on such transactions. For clients, it is worth keeping in mind that car sales in the state often result in a significant tax bill, especially considering the large amount of money involved in the transactions.

Much of the confusion surrounding car sales taxes in the state of Texas stems from the fact that the amount of tax a new car owner will be expected to pay will vary (sometimes significantly) depending on the county and/or city they live in. The blog post explains that the state of Texas imposes several types of motor vehicle taxes on its motorists, and breaks down the various types of taxes.

The main consideration is the Texas car sales tax. As stated by the Texas Department of Motor Vehicles, any individual who purchases a vehicle within the state’s borders owes sales tax on that purchase. The current state tax for cars (subject to change) sits at 6.25%, imposed on the final sales price of the car. This tax is due to the local county’s tax assessor (or collector’s) office. It can be made payable by sending a copy of the Registration Form and/or the Application for Texas Title. More information on this process can be found on the Texas Comptroller Website.

Additionally, both new and established Texas residents are required by the Texas Comptroller to pay a ‘use tax’ that is imposed on the total of the sales tax for the vehicle transaction. The use tax rate for the sale of a car in Texas is currently 6.25% of the price of the car for the 2023 calendar year. Again, this is subject to change year to year. For example, if the sales tax amounted to $100, the car owner would owe 6.25% of that in use tax (i.e. $6.25).

In addition to these taxes, there are also other taxes like the New Resident tax, City and County tax, and more. There are more fees to consider as well, including DMV fees and dealership fees. The insurance agent explains that car taxes and associated fees can be quite complex to handle if an individual does not have the necessary and up-to-date knowledge. Since rules about taxes are constantly changing — and are often updated every year — it can be overwhelming for potential new car owners.

Insurance Navy Brokers has established itself as a premier provider of insurance-related services to residents across the country. The company’s commitment to their clients has earned them great reviews. C. Mirchandani says in a review, “I would recommend them to everyone I know. I was very frustrated with my old insurance company, and Insurance Navy Texas was able to give me exactly what I needed for much less. I really liked how transparent they were and how easy and fast they made the whole process. Absolutely amazing!”

A. Garcia says in another review that the firm provided, “Really great customer service. They helped me get the policy that is best for me. My expectations of what I thought I could have in a good plan have been exceeded. The process was simple and quick. I am grateful to have such a diligent and understanding agent. I highly recommend it.”

More information about Insurance Navy Brokers - Houston and the range of services provided by the company can be found at their official website. The Insurance Navy website also has a form through which users can request a free quote. Those who want to get in touch with an agent of the company can also do via the website. Insurance Navy also maintains a social media presence on Facebook, Twitter, Instagram, Pinterest, YouTube, LinkedIn, and TikTok.


For more information about Insurance Navy Brokers - Houston, contact the company here:

Insurance Navy Brokers - Houston
Agnes Zabawa
1507 Gessner Rd, Houston, TX 77080