State sales tax rate6.25%
* While the base rate applies statewide, it’s only a starting point for calculating sales tax in Texas. For an accurate tax rate for each jurisdiction, add other applicable local rates on top of the base rate.
Texas sales tax basics
The state sales tax rate in Texas (TX) is currently 6.25%. Depending on local municipalities, the total tax rate can be as high as 8.25%.
At the local levels, Texas city tax rates can range from 0.25%–2%; county tax rates vary from 0.5%–1.5%; transit tax rates from 0.25%–1%; and special purpose district tax rates from 0.125%–2%. However, the combined rate of local sales and use taxes cannot exceed 2%, making the highest possible combined tax rate 8.25%.
Not all Texas cities and counties have a local code. Cities and counties without a local code do not charge a local sales and use tax. An example of the complexity of Texas state law is Spring, Texas. Spring is unincorporated but is located within a special purpose district. Local sales and use tax collected is not reported to Spring but to one of two possible tax jurisdictions.
Amazon owns and operates several fulfillment centers in Texas. This physical presence, or nexus, creates a sales tax obligation for Amazon and many sellers participating in Amazon’s Seller Central and Fulfillment by Amazon (FBA) programs.
Texas sales tax is imposed on the retail sale, lease, and rental of most goods and many services. Anyone engaged in these areas of business is required to register with the state and collect and remit Texas sales tax.
How to register to collect sales tax in Texas
If you need to collect sales tax in Texas, first you need to register your business. Learn what steps you need to take to register in Texas.
Now that you’ve registered and you’re collecting sales tax in Texas, find out how to file, or remit, your sales tax. Get answers to your common sales tax filing questions.
Check on the sales tax filing deadlines for Texas. Get the dates for filing annually, quarterly, or monthly.
Get a grip on sales tax compliance
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