No More Paper Dealer License Plates In Texas

Starting July 1, Texas will eliminate all dealer-issued temporary paper license plates in favor of permanent metal plates at the point of sale. The change is mandated by House Bill 718, passed by the Texas Legislature in 2023, and aims to stop widespread fraud, toll evasion, and criminal misuse of untraceable paper tags.

Under the new law, all licensed dealers must issue permanent metal general-issue plates when a vehicle is sold. The old system, which allowed temporary paper tags valid for up to 60 days, will be completely discontinued. Buyers will leave dealerships with registered metal plates already installed on their vehicles. Until the windshield registration sticker arrives by mail, buyers must keep proof of plate issuance in the vehicle.

To implement the change, Texas is requiring dealers to use an updated digital system called webDEALER, which replaces the state’s eTAG platform. The Texas Department of Motor Vehicles will ship metal plate inventories to registered dealers, who are now required to securely manage them using a new Inventory Management System. Any paper-based tag types—including Buyer’s Tags, Agent Tags, Internet Down Tags, One-Trip and 30-Day permits—will no longer be valid for issuance by dealers.

The law also introduces four new types of temporary metal plates for special use cases, including provisional and out-of-state buyer scenarios. For individual private sales, the process remains unchanged: sellers remove the plates and buyers must register the vehicle themselves.

The Texas DMV has trained dealers on new procedures, and compliance will be enforced through audits and inspection. County tax offices will take over issuance of one-trip and 30-day permits as metal tags only.

This overhaul is intended to eliminate fraudulent tags that have been linked to toll violations, vehicle theft, and even violent crimes. Permanent metal plates will provide law enforcement with traceable, tamper-resistant identification and give buyers registered vehicles on day one. Texas officials expect the move to restore trust in vehicle tracking and reduce criminal exploitation of the vehicle sales process.

You can read the actual law here:  House Bill 718.

For consumers:

Consumers buying or selling a vehicle in Texas on or after July 1, 2025, may notice changes in how their license plates are issued or transferred.

Buying a Vehicle from a Dealer: Customers who purchase a vehicle from a Texas dealer will receive metal license plates at the time the dealer delivers the vehicle, allowing them to immediately display the plates and operate the vehicle while awaiting their registration window sticker.

Trading In a Vehicle to a Dealer: Effective July 1, 2025, when customer sell or trade in a vehicle with general issue plates, dealers will remove the plates and may transfer them to another vehicle of the same class sold within 10 days. Consumers with specialty and personalized license plates will retain their plates.

Buying or Selling a Vehicle in a Private Sale: The process remains unchanged for person-to-person vehicle sales. Sellers remove their license plates and registration sticker from the vehicle and can transfer the plates to another vehicle they own—if appropriate for the vehicle class—by visiting the county tax assessor-collector's office. 

Sellers of Texas-titled vehicles should submit a Vehicle Transfer Notification (VTN) to the Texas Department of Motor Vehicles within 30 days. You may still submit a vehicle transfer notification after the 30 days from the date of sale, but it does not guarantee release from liability.

To process the VTN, the seller must provide the buyer’s full name, address, and telephone number, which should be collected at the time of sale.

Buyers must submit a title and registration application at their county tax assessor-collector's office and obtain new plates. For more information, visit Buying or Selling a Vehicle.

Check out this informative PDF from the Texas Motor Vehicle Crime Prevention Authority's Facebook page for a great breakdown on how the temporary tags work.