Texas variant. This is a Texas-specific version of the Auto Loan Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Auto Loan Calculator.
Financing a car in Texas means budgeting for both the loan payment and the state's $2,018 average annual auto insurance premium.
Auto loan + ownership costs in Texas
On a $35,000 vehicle with 10% down, you'd finance $31,500. At 7% over 5 years, that's about $624/month.
Texas drivers pay $2,018/year on average for insurance - about $168/month - plus the state's 8.20% combined sales tax on the purchase.
About taxes and housing in Texas
Texas has a constitutional ban on a state personal income tax, relying instead on sales and property taxes.
Texas offsets the lack of an income tax with relatively high property taxes near 1.68%, while median home values are around $305,000.
Texas has one of the largest state economies in the nation, led by energy, technology, manufacturing, and trade.
Worked example: $35,000 car in Texas
Loan $31,500 at 7% for 5 years → $624/month. Insurance ≈ $168/month. Combined monthly cost of ownership ≈ $792 before fuel and maintenance.
Quick reference
- State income tax: No state income tax (constitutional ban)
- State sales tax: 6.25% (plus 1.95% avg local)
- Median home value: $305,000
- Median household income: $75,780
- Effective property tax rate: 1.68%
- Avg auto insurance: $2,018/yr
Frequently Asked Questions
How much is car insurance in Texas?
The Texas average is $2,018/year, or about $168/month.
What's a typical car payment in Texas?
On a $35,000 car financed at 7% over 5 years, roughly $624/month.