$30,000 vehicle with an eligible $10,000 trade-in
- Vehicle price
- $30,000.00
- Same-transaction trade-in allowance
- −$10,000.00
- Taxable amount
- $20,000.00
- Texas motor vehicle tax rate
- 6.25%
- Estimated motor vehicle tax
- $1,250.00
$20,000.00 × 6.25% = $1,250.00. The example assumes a qualifying trade-in that is part of the same dealer transaction.
