No More Paper Tags: New Texas License Plate Law Begins July 1

(Mix 93-1) In Texas, a major shift is coming in what gets displayed on that new or pre-owned vehicle purchase you make from a vehicle dealer on July 1, 2025, and beyond.

For years, the Texas Department of Motor Vehicles issued 30-day temporary paper tags that would be displayed on the vehicle until a permanent metal plate could be issued to the new vehicle owner.

Why Texas Is Ending Paper Tags

Texas House Bill 718 was signed into law by Texas Governor Greg Abbott in June 2023, overhauling the state's license plate system because there was a major issue with fraudulent paper plates being sold on the black market.

Get our free mobile app

What Happens When You Buy a Car Now

Beginning July 1st, a Texas vehicle buyer will receive a set of permanent metal license plates directly from the dealer. The actual registration sticker that accompanies the plates will be mailed to the new owner.

Issuance Of New Metal Plates

If you buy a vehicle from a dealer, the dealer will issue metal plates at the time of delivery of the vehicle. When you drive off the lot, you'll legally have your plates. As stated above, the actual registration sticker will arrive in the mail separately.

If you trade in a vehicle to a dealer, the dealer will then remove the existing plates from the vehicle, and they can then transfer them to another vehicle of the same class that is sold within 10 days.

Now, if you are the owner of a personalized license plate, those plates are returned to you, and they can then be applied to the new vehicle or any other vehicle.

READ MORE --> Should Texas Bring Back The Old License Plates?

What Dealers Could Issue Instead

Four new metal temporary plates were created to cover special situations:

Buyer Provisional Plate - this will be a purple plate - it will be issed when a dealer doesn't have a specific plate available

Out-of-State Buyer Plate - this will be a green plate - it will be issued to a buyer who is registering the vehicle outside of Texas

Dealer Temporary Plate - this will be a blue plate - it will be used primarily for test drives and loaner cars, or for transferring vehicles between dealers and an auction house

Temporary Registration Plate - this will be a red plate - it will be issued by a Texas DMV office or county tax office for temporary registrations

Rules for Private Car Sales Stay the Same

Nothing will change with this transaction. As you do now, you are to remove your license plates and registration sticker, and the new owner will submit a vehicle transfer notification within 30 days at their local tax office.

The buyer must then submit a title and registration application at their county tax office to acquire new license plates.

Expect Delays as the System Rolls Out

As with any big governmental change, there are bound to be hiccups and a lot of confusion. Dealers have been and continue to go through training on the new procedures.

So if you're on the lot and find yourself in the finance manager's office about to sign that loan, be patient, just a little more as they get you those shiny new metal license plates to go on that new ride of yours.