Title Transfer Costs in Texas

When you buy or sell a vehicle in Texas, it’s essential to understand the fees associated with transferring the title. Here’s what you need to know:

1. Title Transfer Fee:
   • The standard title transfer fee in Texas is $33¹. This fee covers the administrative costs of transferring the title from the seller to the buyer.
   • Additionally, there’s a $2.50 transfer fee added to the vehicle title application fee².
2. Sales and Use Tax:
   • Texas charges 6.25% sales and use tax on the purchase price of the vehicle. This tax is calculated based on the sale amount and is collected during the title transfer process.
3. Other Fees:
   • Depending on your specific situation, you may need to pay additional fees, such as:
     • New Resident Tax: If you’re a new Texas resident, you might be required to pay a $90 New Resident Tax³.
     • Vehicle Inspection Fee: Texas requires a safety inspection for most vehicles. Make sure your vehicle passes inspection before completing the title transfer.
     • Insurance Verification Fee: Some counties may charge a fee for verifying insurance coverage.
4. Timelines:
   • You must transfer the title into the buyer’s name within 30 days from the date of sale. Failing to do so could result in penalties or legal issues.
   • To protect yourself, file a Vehicle Transfer Notification with the Texas Department of Motor Vehicles (TxDMV) within the specified timeframe. This notification ensures that you won’t be held responsible for any parking tickets or toll violations committed by the new owner⁴.

Remember to keep detailed records of the transaction, including contact information for the buyer, sale date, and vehicle details. If you have any questions, feel free to contact us!