Texas: Sales Tax Handbook
Texas Sales Tax Rate
|State Sales Tax||Local Sales Tax Range||Average Local Tax||Average Combined Tax||Max Combined Tax|
|6.25%||0.00% - 2.00%||1.316%||7.566%||8.25%|
2016 Texas Sales Tax Handbook
Texas Table of Contents
- List of Local Sales Tax Rates
- Sales Tax Calculator
- Sales Tax Exemption Certificates
- Sales Tax Info For Businessowners
- Taxable vs. Non-Taxable Purchases
- Sales Tax on Cars & Vehicles
- More Information
Texas' Sales Tax By The Numbers:
Texas has a higher-than-average sales tax, including when local sales taxes from Texas's 714 local tax jurisdictions are taken into account.
Rankings by Average State + Local Sales Tax:
Ranked 13th highest by combined state + local sales tax
Ranked 14th highest by per capita revenue from state + local sales taxes ($1,182 per capita)
Rankings by State Sales Tax Only:
Ranked 6th highest by state sales tax rate
Ranked 13th highest by per capita revenue from the statewide sales tax ($995 per capita)
Printable PDF Texas Sales Tax Datasheet
Texas has a statewide sales tax rate of 6.25%, which has been in place since 1961.
Municipal governments in Texas are also allowed to collect a local-option sales tax that ranges from 0.00% to 2.00% across the state, with an average local tax of 1.316% (for a total of 7.566% when combined with the state sales tax). The maximum local tax rate allowed by Texas law is 2.00%. You can lookup Texas city and county sales tax rates here.
This page provides an overview of the sales tax rates and laws in Texas. If you are a business owner and need to learn more about things like getting a sales tax permit, filing a sales tax return, or making tax-exempt purchases for resale see the Texas Sales Tax Handbook's Table of Contents above.
What is exempt from sales taxes in Texas?
Many states have special sales tax rates that apply to the purchase of certain types of goods, or fully exempt them from the sales tax altogether. Here's how Texas taxes five types of commonly-exempted goods:
For more details on what types of goods are specifically exempt from the Texas sales tax see Texas sales tax exemptions. To learn more about what types of transactions are subject to the sales tax to begin with, see what purchases are taxable in Texas? Taxation of vehicle purchases in particular are discussed in the page about Texas' sales tax on cars.
Are services subject to sales tax in Texas?
"Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In Texas, specified services are taxable.
About the Texas Sales Tax
The state of Texas has relatively simple sales tax rate, and utilizes a flat state tax rate. However, the local cities, counties, transit authorities (with the exception of school districts), and special purpose districts do have the ability to charge local taxes, which will vary depending on location. These local tax rates would be in addition to the state rate. Local jurisdictions also have the ability to impose some other additional taxes if they so choose, which would be cumulative with the state taxes of the same nature.
Is the Texas Sales Tax Destination-Based or Origin-Based?
Texas is a origin-based sales tax state, which means sales tax rates are determined by the location of the vendor, not by the location of the buyer. The origin-based method of determining sales tax is less complicated for vendors than destination-based sales tax, because all in-state buyers are charged the same sales tax rate regardless of their location.
Is Texas a Streamlined Sales Tax State?
Texas is not a member of the Streamlined Sales and Use Tax Agreement. The SSUTA is an agreement adopted by about half of states that ensures that their sales tax laws are simplified to lower the costs associated with compliance.
Contact the Texas Comptroller of Public Accounts
The Texas Sales Tax is administered by the Texas Comptroller of Public Accounts. You can learn more by visiting the sales tax information website at www.window.state.tx.us.
Phone numbers for the Sales Tax division of the Comptroller of Public Accounts are as follows:
- Local Phone: (512) 463-4120
- Toll-Free Phone: (800) 531-5441
Learn More: Our Book Recommendations
If you would like to learn more about how to manage your Texas sales taxes, we recommend the following books:
Simplify Texas sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.
Texas Sales Tax Rates by Zip Code:
Need an updated list of Texas sales tax rates for your business? Download our Texas sales tax database!