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Do we pay sales tax on electric cars in Texas?
Hello from Texas! I own an electric car, and I've been hearing conversations about paying a yearly sales tax on my electric car—is this true?
Chanice Boyd · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Hey! That’s an excellent question. As it stands, you don’t have to pay a sales tax on your electric car, but that may be changing soon.
In 2021, Texas lawmakers began discussing the possibility of adding a yearly sales tax on
electric cars
. EV owners would be asked to pay between $190-$250 per year for their green vehicle. Though they aren’t the first state to consider implementing an “EV tax,” they need to fill the gap from electric car owners not paying a gas tax. America’s vehicle infrastructure depends on gasoline taxes to fund its projects. This number is beginning to shrink with the number of people transitioning to energy-efficient all-electric vehicles. While Texas legislators work to find a modernized solution, they have to find a new way to collect from EV owners.
As you get your finances in order and prepare for the possible new expenses in the coming years, you should try to cut costs where it counts.
If you want to save money on car insurance, the
Jerry
app is an excellent place to start. A licensed broker, Jerry does the hard work of finding cheap quotes from the top name-brand insurance companies and buying new car insurance. Jerry will even help you cancel your old policy.And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price. This level of service is why Jerry earned a 4.6/5 rating on the App Store and made it the top insurance app in the country.
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- Gregory R.
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