Texas sales tax rate changes, January 2017
- Dec 8, 2016 | Gail Cole

Updated 12.15.2016
A number of local sales and use tax rates are set to take effect in Texas on January 1, 2017.
Rate decreases
Corral City, in Denton County, has abolished a city sales and use tax for municipal street maintenance. The new local rate in Corral City is 1.5% (combined rate of 8%), and the new rate in the Corral City Municipal Development District is 0.25%.
The Special Purpose District (SPD) tax in the Gollad Municipal Development District has been abolished.
Rate increases
Gollad, in Gollad County, has imposed additional sales and use tax for Economic and Industrial Development (IDC) and Municipal Street Maintenance and Repair (SMR). The new local rate is 2% (combined rate of 8.25%).
The combined state and local tax rate in Friendswood, which straddles Galveston and Harris counties, will jump to 8.25% due to the imposition of a new 2% city sales and use tax for IDC and SMR.
Los Indios (Cameron County) is also imposing a new 2% city sales and use tax for ICC, bringing the total tax rate to 8.25%.
Additional information, including local codes, is available at the Texas Comptroller.
Automate sales tax compliance
Maintaining accurate sales and use tax rates in multiple tax jurisdictions is a challenge. Tax automation software facilitates sales and use tax calculation and compliance within existing ERP, POS, or ecommerce systems. Learn more.

