TEXAS DOES BASE IT'S VEHICLE STATE SALES TAX OFF OF THE VALUE. As a Texas resident myself, I know this for a fact. Per the Texas Comptroller's office:
- Sales: 6.25 percent of sales price, minus any trade-in allowance. The taxable value of private-party purchases of used motor vehicles may be based on the standard presumptive value.
Your registration, titling, doc, and all other fees are NOT deductible, but YES the state sales tax in Texas IS based on the value.
Remember that according to the IRS, on the topic of "General Sales Tax You Paid on Specified Additional Items," they state: "If the state sales tax rate on these items is higher than the general sales tax rate, include only the amount of tax you would have paid at the general sales tax rate."
