Does trading in my car reduce sales tax in Texas?
In Texas, trading in your car can reduce sales tax. You only pay tax on the difference between the trade-in value and the new vehicle price, potentially saving hundreds or thousands of dollars.
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Trade-in can lower sales tax in Texas.
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Answered by Garrett Dufoe
Last updated 12/16/2025, 12:45:35 PM
Yes! In most states, including Texas, you only pay sales tax on the difference between your trade-in value and the price of your new car. This means trading in your car can save hundreds or even thousands of dollars in sales tax.
Garrett Dufoe
Sales Manager, Elder Mitsubishi
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