Texas' New License Plate Law: A Guide to the Changes Now Enforced
Texas has replaced paper license plates with secure metal ones, effective July 1, 2025. Learn how this change impacts vehicle owners and dealerships.
Texas has implemented a groundbreaking law to modernize its vehicle registration process, marking a significant shift in the state’s approach to security and fraud prevention. Effective July 1, 2025, the new legislation eliminates temporary paper license plates and introduces more secure metal alternatives.
This initiative, driven by House Bill 718 (HB 718), reflects Texas’s commitment to reducing fraudulent activities associated with paper tags while streamlining the registration system for vehicle owners and dealers.
Key changes under the new law in Texas
The centerpiece of the legislation is the replacement of temporary paper license plates with metal temporary tags, which are designed to be more secure and harder to counterfeit. Here are the major changes now in effect:
- Discontinuation of Paper Plates:
Temporary paper plates, previously issued during vehicle purchases, are no longer available. This change aims to reduce the misuse and counterfeiting of these plates, which have posed significant challenges to law enforcement. - Introduction of Metal Temporary Plates:
Buyers and dealerships will now use metal tags for vehicles awaiting permanent registration. These new plates are categorized as:- Buyer's Temporary Tag: For individuals who have recently purchased vehicles.
- Dealer's Temporary Tag: For vehicles in dealer inventories.
- Out-of-State Buyer’s Tag: For non-Texas residents purchasing vehicles within the state.
- Temporary Registration Plate: For unique cases requiring temporary registration.
Texas introduces new license plate regulations under HB 718. Photo: LR composition.
What this means for Vehicle Owners and Dealers and objective of the Legislation
The enactment of HB 718 is part of Texas’s broader strategy to improve vehicle registration processes. The law addresses several key issues:
- Fraud Prevention: By eliminating paper tags, the state seeks to reduce the widespread use of counterfeit license plates.
- Enhanced Security: Metal tags are more durable and secure, providing a reliable means of vehicle identification.
- Streamlined Process: This new system simplifies registration, ensuring that every vehicle on the road complies with state laws.
- For Vehicle Owners:
Individuals purchasing a car in Texas will now receive a metal temporary plate upon completing the transaction. This ensures compliance with the new standards and enhances the security of vehicle identification. - For Dealerships:
Car dealerships must adjust their operations to accommodate the new regulations. Dealers are responsible for procuring metal tags from the Texas Department of Motor Vehicles (TxDMV) and issuing them to buyers at the time of purchase.
Failure to comply with these requirements could result in penalties, making it essential for businesses to stay updated and adapt to the new system.
