Buying a Tesla in Texas: tax, fees and the $2,500 rebate

Facts last checked . Prices and incentives change often; confirm with Tesla and the program before you order.

The Model Y and Cybertruck are built at Giga Texas in Austin, yet Texas is one of the states where Tesla cannot sell to you directly in a showroom. State law bars manufacturers from selling their own cars, so Texas Tesla locations are galleries and service centres: you configure and order online, and the sale is processed outside the state.

Taxes are simple here. The 6.25% motor vehicle sales tax is the same everywhere in the state, but EVs pay extra at registration: $400 up front for a new EV, covering two years, then $200 a year. Cheap electricity offsets that quickly, especially on the free-nights plans common in the deregulated ERCOT market.

Model 3 Standard RWD with fees and 6.25% tax
$41,044
Home charging, per year
$534
Fuel saved vs gas, per year
$950

Tesla prices in Texas with tax

ModelBase priceDestination + order feeTax (6.25%)Total
Model 3 Standard RWD$36,990$1,640$2,414$41,044
Model 3 Premium RWD$42,490$1,640$2,758$46,888
Model Y Standard RWD$39,990$1,640$2,602$44,232
Model Y Premium RWD$45,990$1,640$2,977$50,607

Texas charges a flat 6.25% motor vehicle sales tax statewide, with no city or county add-on, so the number below is close to what you will pay. Base prices are Tesla’s US prices as reported on 2026-10-26 (tesla.com could not be checked directly). Tax is applied to price plus fees, which is a simplification: title, registration and local fees are extra. Every trim and state is in Tesla price by state.

Rebates and incentives in Texas

Federal $7,500 clean vehicle tax credit

Ended

Ended for vehicles acquired after September 30, 2025. Any page still promising $7,500 off a new Tesla is out of date.

Federal car loan interest deduction

Limited

For 2025 to 2028, buyers who finance a new US-assembled vehicle for personal use can deduct up to $10,000 a year of loan interest, phasing out at higher incomes. Model 3 and Model Y sold in the US are assembled in California or Texas. Confirm your eligibility with a tax professional.

TCEQ Light-Duty Motor Vehicle Purchase or Lease Incentive

Limited

A $2,500 rebate for a limited number of new EVs, offered in application windows when funding is available. Check the TCEQ site for whether a window is open before you take delivery.

Austin Energy charger rebate

Verify first

Austin Energy customers have been able to claim a rebate on a Level 2 home charger. Confirm the current amount with Austin Energy.

More on what replaced the federal credit: Tesla tax credit ended.

Charging costs in Texas

Electricity rate used
16¢/kWh
Cost per 100 miles
$4.45
Gas car, per year
$1,484

Average residential rate, 15.9¢/kWh (EIA, August 2026). Free-nights plans can push home charging close to zero. Gas: AAA state average for regular, 2026-10-26. Assumes 12,000 miles a year, 0.28 kWh per mile for a Model 3 including charging losses, and a 30 mpg gas car at about $3.71/gal. Prices last checked October 26, 2026; we refresh them monthly. Run your own numbers in the savings calculator.

Utility plans worth knowing

  • •Deregulated areas (Dallas, Houston): many retail plans offer free or cheap nights, ideal for scheduled charging
  • •Austin Energy: EV360 time-of-use plan and home charger rebate
  • •CPS Energy (San Antonio): EV programs and off-peak incentives

Owning a Tesla in Texas

  • •New EVs pay a $400 registration fee covering two years, then $200 a year.
  • •You cannot buy from a Texas showroom. Order online; delivery and service are local.
  • •Summer heat means the car spends energy cooling the cabin and battery. Park in shade or a garage when you can.

Tesla delivers across the state, including Houston, Dallas, Austin, San Antonio, Fort Worth and El Paso.

Texas Tesla questions

How much does a Tesla Model 3 cost in Texas?

The Model 3 Standard RWD starts at $36,990. Add Tesla's $1,640 destination and order fee and the 6.25% state rate used on this page and it comes to about $41,044 before title and registration. Texas charges a flat 6.25% motor vehicle sales tax statewide, with no city or county add-on, so the number below is close to what you will pay.

Why can’t I buy a Tesla at a Texas store?

Texas law prohibits car manufacturers from selling directly to customers. Tesla’s Texas locations can show cars and arrange test drives, but the order is placed online and processed out of state. Delivery and service still happen locally.

What extra fees do EVs pay in Texas?

A new EV pays $400 at first registration, covering two years, then $200 a year on top of normal registration. That is meant to replace the gas tax EV drivers do not pay.

Is there a Texas EV rebate?

TCEQ runs a $2,500 purchase or lease rebate for a limited number of vehicles in application windows. It is first come, first served, so check whether a window is open before delivery.

What does it cost to charge a Tesla at home in Texas?

At 16¢/kWh, a Model 3 costs about $4 per 100 miles to charge at home, or roughly $534 a year, versus about $1,484 for a comparable gas car.

More answers in the Tesla FAQ.

Guides for US buyers

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