The short answer
On a Texas motor vehicle purchase, the purchaser owes the tax. The Texas Comptroller’s Motor Vehicle – Sales and Use Tax page states that a private-party purchaser must remit the appropriate motor vehicle tax to the county tax assessor-collector within 30 calendar days of purchase, and that late payment brings a 5 percent penalty if tax is paid 1–30 days after the due date, or 10 percent if paid more than 30 days after the due date. For Houston cash sellers, that means the sale date on the title paperwork matters to the buyer’s clock—and your written record should match what TxDMV expects you to keep.
What the Comptroller page says (opened)
From the opened sales-and-use page:
- Who owes: a person who purchases a motor vehicle in Texas owes motor vehicle sales tax.
- Rate (sales): 6.25 percent of sales price, minus any trade-in allowance. Private-party taxable value may also involve standard presumptive value (SPV)—see the Comptroller’s Private-Party Purchases and Standard Presumptive Values page and our earlier SPV private-party vs dealer post.
- Dealer path: for vehicles 11,000 pounds or less, the dealer collects tax from the purchaser and remits to the county; tax remains a debt of the purchaser until paid to the dealer.
- Private-party path: the purchaser remits to the county tax assessor-collector within 30 calendar days of purchase, using Form 130-U (Application for Texas Title and/or Registration), signed by the purchaser.
- Late registration penalty: 5% if paid 1–30 days after the due date; 10% if paid over 30 days after the due date.
Related gift / even-exchange amounts on the same page ($10 gift tax, $5 even exchange) are different transactions—see our gift transfer vs cash sale post when money is not changing hands.
Why Houston cash sellers should care
Sell Me Your Car Houston buys cars for cash in greater Houston—running or not—and can help with paperwork and pickup. Offers are no-obligation.
When the sale is a true private-party cash deal (not a licensed-dealer purchase), the buyer runs the tax clock. Sellers still protect themselves with clean paperwork:
- Put a clear date of sale, sales price, and odometer on the signed title and 130-U package the buyer will use (130-U checklist).
- Keep a written record with buyer name, address, phone, date, and VIN—TxDMV’s Buying or Selling a Vehicle guidance still expects sellers to retain that file.
- File a Vehicle Transfer Notification when applicable (VTN post) so tickets and tolls after the sale date are handled correctly.
- Do not tell a buyer “tax is optional” or invent a lower sales price to “help” their tax bill—under-reporting is the buyer’s compliance problem and can become yours if documents conflict.
Short seller checklist
- Agree the sale date in writing on the title assignment.
- Show the real sales price on 130-U when that form is part of the deal.
- Hand the buyer copies and keep your own.
- Remind the buyer (politely) that private-party remittance is generally due within 30 days per the Comptroller—without giving tax advice.
- Complete plate / sticker / EZ TAG steps from our plates checklist.
What this post is not promising
- This is educational Comptroller / TxDMV process context, not tax advice.
- County offices may have local intake rules; fees and SPV math are calculated at titling.
- A cash offer from this site is no-obligation and not a guaranteed price before inspection of the vehicle’s condition.
- We do not invent tax savings, refunds, or “we pay your tax” claims.
Bottom line
Per the Comptroller, motor vehicle sales tax is the purchaser’s responsibility; private-party remittance is due within 30 days, with 5% / 10% late penalties after that. Houston cash sellers protect both sides by documenting sale date and price accurately—and by using the right title path for a true sale versus a gift.
Want a no-obligation cash offer conversation? Start here.