Does a Texas resident buying car registered in New Mexico private sale pay sales tax or Texas?

When a Texas resident purchases a car from a private seller in New Mexico, the buyer is required to pay sales tax in New Mexico. This is because the sale is taking place in New Mexico, and the state has a sales tax law that applies to all sales of vehicles. The buyer will need to pay the sales tax to the New Mexico Motor Vehicle Division (MVD) when they register the vehicle in Texas.

The amount of sales tax that the buyer will pay will depend on the purchase price of the vehicle. The MVD will calculate the sales tax based on the purchase price, and the buyer will need to pay the tax when they register the vehicle.

In addition to sales tax, the buyer may also be required to pay other fees, such as a title fee, registration fee, and inspection fee. These fees will vary depending on the county in Texas where the vehicle is being registered.

For more information on the sales tax and fees that apply to the purchase of a vehicle in New Mexico, please contact the New Mexico Motor Vehicle Division.