Texas Standard Presumptive Value (SPV)
Standard Presumptive Value is how Texas stops people writing "$100" on a bill of sale to avoid tax. On private-party sales the state taxes the higher of what you actually paid or 80% of its own computed value for the vehicle.
When SPV applies — and when it does not
SPV applies to private-party sales between individuals. Dealer sales are taxed on the negotiated price minus any trade-in instead, because the transaction is documented. So the same car can carry a different tax bill depending on who you buy it from.
The 80% rule
The taxable amount is the greater of your sales price or 80% of the vehicle’s Standard Presumptive Value. The 80% margin exists to accommodate genuinely below-market cars — a vehicle in poor condition, or an honest bargain — without opening the door to fictional prices.
If you think the SPV is too high
You can substitute a lower value by obtaining a certified appraisal on the state’s appraisal form from a licensed dealer or insurance adjuster, generally within 30 days of the sale. That is the formal route for a vehicle with damage or unusually high mileage.
Gifts and family transfers
Qualifying gift transfers — typically between close family members — pay a flat $10 gift tax instead of 6.25%, regardless of the vehicle’s value. The transfer must be a genuine gift with no consideration exchanged.
Official source
TxDMV — Buying or Selling a Vehicle ↗ — the figures on this page are checked against it, most recently on 2026-08-20. See how we verify fees.
Common questions
What is Standard Presumptive Value in Texas?
A state-computed market value for a used vehicle. On private-party sales, Texas charges 6.25% tax on whichever is higher: your purchase price, or 80% of the SPV.
Can I avoid tax by writing a low price on the bill of sale?
No. If the stated price is below 80% of SPV, Texas taxes the 80% figure instead. The rule exists precisely to prevent that.
Does SPV apply when buying from a dealer?
No. Dealer sales are taxed on the sales price less trade-in allowance.
How do I dispute an SPV?
Obtain a certified appraisal on the state appraisal form from a licensed dealer or insurance adjuster, generally within 30 days of purchase.