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Texas Sales Tax: Rates, Calculator, Who Pays
Texas Sales Tax: Rates, Calculator, Who Pays
In Texas, the state sales tax is 6.25%, but local taxes of up to 2% can also be tacked onto purchases.
Texas sales tax rate
The state sales tax in Texas is 6.25%. Local tax can’t exceed 2%, which means that 8.25% is the maximum combined sales tax that can be collected in Texas. The local tax amount generally depends on the seller’s place of business — such as a store or an office — if they have one. Different rules apply for sellers shipping orders to customers, whether in-state or out of state, depending on where the order is fulfilled.Calculate Texas sales tax
Who pays TX sales tax?
Customers pay the Texas sales tax, which is calculated by sellers and service providers, during the sale. For example, if you buy a $10 T-shirt in Austin, Texas, you’ll see a state tax rate of 6.25% and a local tax rate of 2% on the receipt, bringing the total to $10.83. If you bought a good or service that’s taxable in Texas but didn’t pay sales tax at the time of purchase, you’ll owe Texas use tax instead. Individuals who don’t have a Texas Sales and Use Tax permit can pay this to the Texas Comptroller’s office and report it with Form 01-156.What items are subject to Texas sales tax?
Taxable items in Texas include certain food items, such as soft drinks and candy, beer and wine, and prepared foods . Almost all retail sales, leases, rentals of most goods, as well as taxable services, are subject to Texas sales tax. There are 17 categories of taxable services in Texas, including amusement services (think concerts, carnivals and sporting events), cable television services, laundry services and more. There are also industry-specific sales and use taxes, such as telecommunication services and insurance taxes. AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn more Learn moreon Anthem Tax Services' website
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What is exempt from Texas sales tax?
Most groceries, over-the-counter drugs and medicine, and feminine hygiene and menstrual products are exempt from Texas sales tax. Certain nonprofit and governmental organizations may be exempt from paying sales tax, but they will need to apply for exemption from the comptroller’s office and be approved before making purchases. The exceptions are federal and Texas government entities, which are automatically granted exemptions. Individuals who buy items to directly donate to some nonprofit organizations may also be able to claim a sales tax exemption in Texas. There are certain requirements, and not every nonprofit qualifies, but the first step is to provide Form 01-339, Texas Sales and Use Tax Exemption Certification to the seller.Who collects TX sales tax?
Sellers calculate and collect Texas sales tax for the items or services they sell. In Texas, permitted sales taxpayers can claim a 0.5% discount on the amount they’ve reported and paid on time, as well as an additional 1.25% if prepaying sales tax. Sellers can also face penalties for reporting and paying taxes late. Each report filed after the due date is assessed a $50 penalty. On top of that, for taxes paid between one and 30 days late, there is a 5% penalty, and anything more than 30 days late gets a 10% penalty.Texas sales tax holidays 2026
Texas has four sales tax holidays. Each one is dedicated to a specific purpose, such as emergency preparation or back-to-school shopping, and related items under a certain dollar amount can be purchased tax-free. Here's when you can shop them in 2026: Emergency preparation supplies: April 25–27. Energy Star products: May 23–25. Water-efficient products: May 23–25. Back-to-school items: Aug. 7–9. » MORE: See which other states have a sales tax holiday » MORE AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn more Learn moreon Anthem Tax Services' website
AD Owing the IRS Over $10K Is More Common Than You Think Discover tax resolution options customized to your case, backed by a 100% Resolution Money Back Guarantee. Learn more Learn moreon TaxRise's website
AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn more Learn moreon Anthem Tax Services' website
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