Home›Texas tax, title and fees
Explainer, Nov 2, 2026
How Texas sales tax, title and fees work when you buy a new Honda in Frisco
Four lines sit between the price of the car and the number on the contract. Here is each one, in the order the desk adds them, with a worked example on the cheapest new Honda on the lot today.
The formula
- Selling price minus trade-in. The listed price of the car, less what the dealership gives you for your trade. Texas taxes the difference.
- Sales tax at 6.25%. Charged on that difference plus the documentary fee. The dealer also passes through a vehicle inventory tax of under a tenth of a percent of the price.
- Documentary fee, $225. The paperwork of the sale. The dealer sets it and charges everyone the same amount.
- Title and registration, $201. The state title and the first year's registration.
Add the four and you have the out-the-door price. A down payment comes off after that, and what is left is the amount financed.
Worked example: 2027 Honda Civic Sedan LX
The lowest listed new Honda at David McDavid Honda of Frisco as of Nov 2, 2026 is a 2027 Honda Civic Sedan LX at $26,290 (before the doc fee). With no trade-in:
| Listed price | $26,290 |
|---|---|
| Sales tax6.25% of $26,515, plus the inventory tax | $1,681.82 |
| Documentary fee | $225 |
| Title and registration | $201 |
| Out the door | $28,397.82 |
Financed over 60 months at 9.99% APR with nothing down that is about $603 a month; with $5,000 down, about $497. With a $10,000 trade-in instead, the tax drops to $1,056.82 and the out-the-door figure to $17,772.82.
What is not in the estimate
- Rebates and programs. Honda and Honda Financial Services run offers by model and month. They only lower the number.
- Your rate. 9.99% is shown until a lender reviews your credit. Approved buyers often qualify for less.
- Your trade's payoff. If you still owe on the trade, the payoff is added to the amount financed.
- Add-ons. Accessories, protection plans and service contracts are your choice and are priced separately.
Run it on the car you want
The estimator on my home page does this arithmetic on any new Honda, with the dealership's current lot price, your down payment, trade-in and term. Each model also has a price guide with every trim's figures:
Questions people ask
How much is sales tax on a new car in Texas?
6.25% of the selling price minus any trade-in, charged by the state on every motor vehicle sale. The dealer collects it and also passes through a small vehicle inventory tax, under a tenth of a percent of the price.
Is the documentary fee taxed in Texas?
Yes. The documentary fee is part of the taxable price, so the 6.25% applies to the price plus the doc fee. In Texas the dealer sets the fee and charges every customer the same amount; at David McDavid Honda of Frisco it is $225.
How much are title and registration in Texas?
About $201 for a new car: the title application, the registration for the first year and the state and county fees that come with it. It does not change with the price of the car.
Does a trade-in lower the sales tax?
Yes. Tax is charged on the price minus the trade-in value, so a $10,000 trade saves $625 in tax on top of the $10,000 itself. On a $26,290 Civic Sedan that takes the out-the-door figure from $28,398 to $17,773.
Why does every estimate show 9.99% APR?
Until a lender reviews your credit no rate can be quoted, so the estimates use a conservative one. Approved buyers often qualify for less, and Honda Financial Services runs special rates on new models through the year.
Is sending an offer, or being invited in, an agreement on price?
No. An offer sent from this page, and any reply from Jeshua including an invitation to come in, is not an acceptance or an agreement to sell at that figure, and does not mean the dealership is entertaining it. It starts a conversation about finding the right vehicle and the right fit. Only a signed buyer's order from the dealership sets a price.
What can change the final out-the-door price?
Rebates and manufacturer programs lower it. Your trade's payoff, accessories or protection products you choose, and the approved rate change the payment. The dealership sets the final figures at purchase; the estimate shows you the shape of the deal before you walk in.
Figures as of Nov 2, 2026. Estimates only, not an offer of credit; the dealership sets the final numbers at purchase. This is Jeshua Farmer's personal page, not the dealership's website.