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Resource Center \ Sales Tax by State \ Ultimate Texas Sales Tax Guide

Ultimate Texas Sales Tax Guide

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State taxing authority:Texas Comptroller
2023 Texas sales tax rate: 6.25%
Local sales tax rates?Yes
Streamlined Sales and Use Tax Agreement Member?No

In this guide, we'll cover all you need to know about Texas sales tax. 

We'll explore how you can calculate sales tax rates for counties and cities in Texas and answer a few common questions. We'll also show you how to collect and file sales tax in Texas.

We’ll also suggest a white glove sales tax solution to ensure you stay compliant throughout the entire sales tax lifecycle. 

Texas Sales Tax Rate Range 2023

The minimum sales tax in Texas is 6.250%. 

Counties, cities, and towns in Texas can impose local sales tax of up to 2%. Some counties also impose multiple district tax rates within cities. 

For instance, cities like North Zulch in Madison County have a sales tax rate of 6.750%, which includes a Madison County local tax of 0.5% and a Texas sales tax rate of 6.250%. 

Whereas some other cities in Madison County, such as Madisonville, impose an additional city tax of 1.5%, which brings the total sales tax rate to 8.250%. This is the highest sales tax rate in Texas.

The Texas Tax Comptroller of Public Accounts undertakes various tax responsibilities, like tax collection, revenue estimation, and more. 

Note: Texas has around 850 special purpose districts that impose a sales tax. There are nearly 40 types of special districts that provide various services like water conservation, toll roads, hospitals, and more. Depending on these purposes, these districts levy sales, property, and use taxes. 

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    How to Calculate Sales Tax in Texas?

    You need to add these rates to calculate tax in Texas accurately:

    • State tax
    • District tax (also known as county/city tax)
    • Special tax

    For instance, let’s calculate the sales tax rate of Cooper, Delta County.

    • Texas state sales tax of 6.25%
    • Delta County sales tax of 0.50%
    • Cooper City tax of 1.00%
    • Special tax of 0.50%

    This brings the total sales tax rate of Cooper to 8.250%.

    Sales Tax Rates in Texas by County

    Let’s take a look at the sales tax rate in various Texas counties:

    County NameTax Rate
    Anderson County8.250%
    Andrews County8.250%
    Angelina County8.250%
    Aransas County8.250%
    Archer County8.250%
    Armstrong County8.250%
    Atascosa County8.250%
    Austin County8.250%
    Bailey County8.250%
    Bandera County8.250%
    Bastrop County8.250%
    Baylor County8.250%
    Bee County8.250%
    Bell County8.250%
    Bexar County8.250%
    Blanco County8.250%
    Borden County6.250%
    Bosque County8.250%
    Bowie County8.250%
    Brazoria County8.250%
    Brazos County8.250%
    Brewster County8.250%
    Briscoe County8.250%
    Brooks County8.250%
    Brown County8.250%
    Burleson County8.250%
    Burnet County8.250%
    Caldwell County8.250%
    Calhoun County8.250%
    Callahan County8.250%
    Cameron County8.250%
    Camp County8.250%
    Carson County8.250%
    Cass County8.250%
    Castro County8.250%
    Chambers County8.250%
    Cherokee County8.250%
    Childress County8.250%
    Clay County8.250%
    Cochran County7.750%
    Coke County8.250%
    Coleman County8.250%
    Collin County8.250%
    Collingsworth County8.250%
    Colorado County8.250%
    Comal County8.250%
    Comanche County8.250%
    Concho County8.250%
    Cooke County8.250%
    Coryell County8.250%
    Cottle County8.250%
    Crane County8.250%
    Crockett County6.750%
    Crosby County8.250%
    Culberson County8.000%
    Dallam County8.250%
    Dallas County8.250%
    Dawson County8.250%
    De Witt County8.250%
    Deaf Smith County8.250%
    Delta County8.250%
    Denton County8.250%
    Dickens County8.250%
    Dimmit County8.250%
    Donley County8.250%
    Duval County8.250%
    Eastland County8.250%
    Ector County8.250%
    Edwards County7.750%
    El Paso County8.250%
    Ellis County8.250%
    Erath County8.250%
    Falls County8.250%
    Fannin County8.250%
    Fayette County8.250%
    Fisher County8.250%
    Floyd County8.000%
    Foard County8.000%
    Ford Bend County8.250%
    Franklin County8.250%
    Freestone County8.250%
    Frio County8.250%
    Gaines County8.250%
    Galveston County8.250%
    Garza County8.250%
    Gillespie County8.250%
    Glasscock County6.750%
    Goliad County8.250%
    Gonzales County8.250%
    Gray County8.250%
    Grayson County8.250%
    Gregg County8.250%
    Grimes County8.250%
    Guadalupe County8.250%
    Hale County8.250%
    Hall County8.250%
    Hamilton County8.250%
    Hansford County8.250%
    Hardeman County8.250%
    Hardin County8.250%
    Harris County8.250%
    Harrison County8.250%
    Hartley County8.250%
    Haskell County8.250%
    Hays County8.250%
    Hemphill County8.250%
    Henderson County8.250%
    Hidalgo County8.250%
    Hill County8.250%
    Hockley County8.250%
    Hood County8.250%
    Hopkins County8.250%
    Houston County8.250%
    Howard County8.250%
    Hudspeth County7.250%
    Hunt County8.250%
    Hutchinson County8.250%
    Irion County7.250%
    Jack County8.250%
    Jackson County8.250%
    Jasper County8.250%
    Jeff Davis County8.250%
    Jefferson County8.250%
    Jim Hogg County8.250%
    Jim Wells County8.250%
    Johnson County8.250%
    Jones County8.250%
    Karnes County8.250%
    Kaufman County8.250%
    Kendall County8.250%
    Kenedy County6.250%
    Kent County7.250%
    Kerr County8.250%
    Kimble County8.250%
    King County6.250%
    Kinney County8.250%
    Kleberg County8.250%
    Knox County8.250%
    La Salle County8.250%
    Lamar County8.250%
    Lamb County8.250%
    Lampasas County8.250%
    Lavaca County8.250%
    Lee County8.250%
    Leon County8.250%
    Liberty County8.250%
    Limestone County8.250%
    Lipscomb County8.250%
    Live Oak County8.250%
    Llano County8.250%
    Loving County6.250%
    Lubbock County8.250%
    Lynn County8.250%
    Madison County8.250%
    Marion County8.250%
    Martin County8.000%
    Mason County8.250%
    Matagorda County8.250%
    Maverick County8.250%
    Mcculloch County8.250%
    Mclennan County8.250%
    Mcmullen County6.250%
    Medina County8.250%
    Medard County8.250%
    Midland County8.250%
    Milam County8.250%
    Mills County8.250%
    Mitchell County8.250%
    Montague County8.250%
    Montgomery County8.250%
    Moore County8.250%
    Morris County8.250%
    Motley County8.250%
    Nacogdoches County8.250%
    Navarro County8.250%
    Newton County8.250%
    Nolan County8.250%
    Nueces County8.250%
    Ochiltree County8.250%
    Oldham County8.250%
    Orange County8.250%
    Palo Pinto County8.250%
    Panola County8.250%
    Parker County8.250%
    Parmer County8.250%
    Pecos County8.250%
    Polk County8.250%
    Potter County8.250%
    Presidio County8.250%
    Rains County8.250%
    Randall County8.250%
    Reagan County8.250%
    Real County8.250%
    Red River County8.250%
    Reeves County8.250%
    Refugio County8.250%
    Roberts County8.250%
    Robertson County8.250%
    Rockwall County8.250%
    Runnels County8.250%
    Rusk County8.250%
    Sabine County8.250%
    San Augustine County8.250%
    San Jacinto County8.250%
    San Patricio County8.250%
    San Saba County8.250%
    Schleicher County8.250%
    Scurry County8.250%
    Shackelford County8.250%
    Shelby County8.250%
    Sherman County8.250%
    Smith County8.250%
    Somervell County8.250%
    Starr County8.250%
    Stephens County8.250%
    Sterling County8.250%
    Sterling County8.250%
    Sutton County8.250%
    Swisher County8.250%
    Tarrant County8.250%
    Taylor County8.250%
    Terrell County7.750%
    Terry County8.250%
    Throckmorton County8.250%
    Titus County8.250%
    Tom Green County8.250%
    Travis County8.250%
    Trinity County8.250%
    Tyler County8.250%
    Upshur County8.250%
    Upton County7.750%
    Uvalde County8.250%
    Val Verde County8.250%
    Van Zandt County8.250%
    Victoria County8.250%
    Walker County8.250%
    Waller County8.250%
    Ward County8.250%
    Washington County8.250%
    Webb County8.250%
    Wharton County8.250%
    Wheeler County8.000%
    Wichita County8.250%
    Wilbarger County8.250%
    Willacy County8.250%
    Williamson County8.250%
    Wilson County8.250%
    Winkler County8.250%
    Wise County8.250%
    Wood County8.250%
    Yoakum County7.750%
    Young County8.250%
    Zapata County8.250%
    Zavala County8.250%

    Sales Tax Rates in Texas by City

    Let’s check out the sales tax rates of some Texan cities:

    CityCountyTax Rate
    La BlancaHidalgo County6.250%
    OzonaCrockett County6.750%
    ChanningHartley County7.250%
    HollidayArcher County7.750%
    ElkhartElkhart County8.000%
    Dallas CityDallas County8.250%
    HoustonHarris County8.250%
    AustinTravis County8.250%

    Next, let’s check out how sales tax is collected in Texas.

    Collecting Sales Tax in Texas

    Here are the answers to some common questions you may have:

    Do I have to Collect Texas Sales Tax from Customers?

    According to the Texas Comptroller of Public Accounts, retailers who meet these requirements must collect sales tax in Texas if: 

    • You are engaged in business in Texas.
    • You sell or lease tangible personal property in Texas.
    • You sell taxable services in Texas.

    What Creates Sales Tax Nexus in Texas?

    Under Texas code 151.024, Texas considers “sellers” or “retailers” to have nexus in the state. 

    Texas sales tax nexus rules include:

    • Economic Nexus: A taxable sale occurs when you sell goods worth $500,000 or more in the state within the previous or current calendar year.
    • Physical Location: This can be a warehouse, office, or distribution center. 
    • Employee Location: A company with employees or any other type of representation in Texas should pay taxes.
    • Affiliate Nexus: A taxable sale happens when an out-of-state business receives substantial referrals from in-state businesses in Texas.
    • Trade Shows: Businesses participating even in a single day of trade show activities can create a sales tax nexus for an entire year following the date of trade show participation.
    • Tangible Personal Property: Sales of tangible personal property like equipment, supplies, or IT systems. Tangible personal properties used for a final sale and those that help make a chemical or physical change are exempt from sales taxes.  

    Do I Have to Collect Sales Tax from Texas Customers if I Sell on Amazon, Walmart, Ebay, or Etsy?

    Texas has a marketplace facilitator law, which means that marketplaces like Walmart or Amazon are required to collect sales tax on behalf of 3rd party sellers on their platforms. 

    If you have sales tax nexus in Texas, remember that you are still required to collect sales tax on your other, non-marketplace, Texas sales.

    Read more about marketplace facilitator sales tax laws here.

    Taxable Products in Texas

    Most tangible personal property and services like clothing and furniture are subject to sales tax in Texas.

    However, like some other states, Texas avoids imposing taxes on basic necessities like over-the-counter medications and water. 

    Let’s take a closer look at how items are taxed in Texas: 

    Are groceries taxable in Texas? 

    Grocery items like flour, sugar, milk, etc., are non-taxable, while candies, candied nuts, and are taxable. 

    To find more information, read how taxes are collected on groceries across the United States.

    Is clothing taxable in Texas?

    Yes, clothing is a taxable item in Texas.

    Are digital products taxable in Texas?

    Digital products are taxable in Texas if their tangible equivalent is also taxable. 

    For instance, this applies to things like an eBook version of a book that will also be sold in hardback at a bookstore. Or the electronic version of a movie that would also be sold on a Blu-ray disc. 

    Is Software-as-a-Service (SaaS) Taxable in Texas?

    Texas taxes SaaS as a data processing service, and it is subject to an 80% sales tax on the price of the service. 20% of the price of these services is eligible for a sales tax exemption.

    Are Services Taxable in Texas? 

    Taxable services in Texas include:

    • Amusement services
    • Cable television services and bundled cable services
    • Credit reporting services
    • Data processing services
    • Debt collection services
    • Information services
    • Insurance services
    • Internet access services
    • Laundry, cleaning, and garment services
    • Motor vehicle parking and storage services
    • Nonresidential real property repair, restoration, or remodeling Services
    • Personal property maintenance, remodeling, or repair Services
    • Personal services
    • Real property services
    • Security services
    • Telecommunications services
    • Telephone answering services
    • Utility transmission and distribution services
    • Taxable labor – photographers, draftsmen, artists, tailors, etc.

    Note: You can apply for a sales tax exemption certificate to buy a taxable item tax-free for resale, rent, or lease-out purposes.

    Read more about which services are subject to sales tax in Texas here.

    Tax-exempt Items

    Tax-exempt items in Texas are:

    • Baby products like baby food (canned, packaged, etc.) and milk (canned, dry, etc.)
    • Bakery items (non-taxable when sold at a grocery and convenience store without eating utensils or heated). For example, items like bagels, cookies, and strudels. This includes baking supplies like almond paste, marzipan, and baking chocolate (blocks and chips).
    • Condiments and spices such as catsup and herbs.
    • Dairy products like butter, milk, and milk substitutes (canned and dry).
    • Food produce like eggs, canned fruits and vegetables (canned, dried, and frozen) and snacks such as breakfast bars and frozen yogurt unless sold in individual-sized portions. 
    • Beverages like coffee, water, and fruit and vegetable juices (more than 50 percent fruit or vegetable juice, canned, bottled, or frozen).
    • Grains and pasta like pasta and rice.
    • Meat, poultry, and fish like canned, dried, and deli meats.
    • Nutritional supplements like herbal and mineral products and vitamins. The product should either fulfill the criteria for dietary supplements or be labeled with a “Supplement Facts” panel according to the regulations of the FDA.
    • Over-the-counter drugs and medicines (when required by the FDA to be labeled with a Drug Facts panel) like acne and allergy treatment products. It also includes wound care items such as adhesive bandages (including strip adhesive bandages, large adhesive bandages, and butterfly closures), corn cushions, and liquid bandage products.

    But to collect these taxes, you must first have a sales tax license. Let’s find out how you can get one.

    How to Register for a Texas Sales Tax License

    You can register for a Texas sales tax license online at the Texas Comptroller website.

    However, not all states follow the same procedure. Learn how to register for a sales tax license in every US state here.

    Do I need a Texas sales tax permit if I only sell temporarily in the state?

    Yes, you need a sales tax permit— even if you temporarily do business in the state.  

    Next, let’s check out how you can collect these taxes.

    How to Collect Sales Tax in Texas

    Texas is responsible for collecting sales tax, income tax, and property tax from its counties and cities. 

    It collects sales tax in two ways:

    • Origin-based sourcing state for intrastate sales.
    • Destination-based sales tax sourcing state for interstate sales. 

    Learn more about origin-based and destination-based sales tax sourcing here.

    How to Collect Sales Tax on Intrastate Texas Sales

    A sale is considered intrastate if it ships from an origin in Texas to a buyer's address in Texas. 

    Texas is an “origin-based” sales tax sourcing state. This means that if you make a sale originating in Texas and the buyer’s ship-to address is also in Texas, you would charge the sales tax rate at the sale’s origin point. 

    For example, your business is in Round Rock, Texas, and you make a sale to a buyer in Marathon, Texas. Then, you should charge the buyer the sales tax rate at your Round Rock location.

    How to Collect Sales Tax on Interstate Texas Sales

    A sale is considered “interstate” if the item ships from outside Texas and the seller isn’t otherwise “engaged in a business” in the state.  

    For sales that don’t originate in Texas, you’d generally charge the sales tax rate at your buyer’s location. 

    For instance, if your business is located in Idaho Falls, Idaho, and you sell to a buyer in Alpine, Texas, you may have to charge the buyer the Alpine sales tax rate.

    Texas allows remote sellers to opt for a "single local rate" for all Texas buyers. As of 2023, this rate is 1.75% on top of Texas state sales tax. 

    Learn more about Single Local Rates in Texas here.

    Should You Collect Sales Tax on Shipping Charges in Texas?

    Yes, shipping charges are subject to sales tax in Texas.

    Learn about sales tax on shipping in every US state here.

    Now, let’s look at how you can file and pay your sales taxes.

    How to File and Pay Sales Tax in Texas

    You can file and pay Texas sales tax online or by mail.

    If you paid $50,000 or more in sales tax, you need to file and return sales tax electronically. And if you paid $10,000 or more in sales tax in the previous Texas fiscal year, you’re required to file electronically and pay via electronic funds transfer (EFT).

    Meanwhile, taxpayers who paid $500,000 or more need to transmit payments using TEXNET.

    Taxpayers can use the following methods to file and pay taxes:

    Learn how to file and pay sales tax in other US states here.

    Let’s find answers to some FAQs regarding paying and filing sales taxes.

    FAQs on Paying and Filing Texas Sales Tax

    Here are some commonly asked questions and their answers:

    What Is Use Tax?

    Sometimes, taxpayers purchase goods from outside the state but use them within the state.

    That’s when you must file a Texas use tax return.

    Use tax is a nonrecurring tax that’s complementary to sales tax. It’s imposed on the storage, use, or other consumption of tangible personal property or a taxable service in Texas.

    Use tax is typically similar to sales tax rates and only applies when consumers don’t pay sales tax.

    The Texas use tax is 6.250%. Depending on where taxpayers use and store these goods, they may have to pay additional local sales tax of up to 2%. 

    I didn’t collect any Texas Sales Tax During this Period. Do I still Need to File a Return?

    Yes. Texas requires that you file a “zero return” even if you did not collect any sales tax over the taxable period.

    Failure to file a zero return can result in a $50 penalty.

    Can I Get a Discount on My Texas Sales Tax?

    Some taxpayers claim 0.5% of the tax amount if they file and pay taxes on time and get a 1.25% discount if they prepay their taxes. You can also claim a sales tax refund in case of overpayment or if you are eligible for a tax refund.

    What is the Penalty for Filing and/or Paying Texas Sales Tax Late?

    Texas assesses late filing and payment penalties based on how late the filing and/or payment is received. They will send a notice of tax due with an estimated assessment of tax owed if your payment is late.

    Late filing periodPenalty
    1-30 days5%
    More than 30 days10%
    Failing to file by the due date of your notice of estimated tax dueAn additional 10% (for a total of 20%)

    After 61 days, you will be charged interest on your tax dues. 

    Can I Get an Extension on Filing My Texas Sales Tax Return? 

    No. Texas does not provide sales tax extensions or a sales tax holiday except in cases where a disaster has been declared in your area.

    Can I Amend a Texas Sales Tax Return? 

    Yes. Texas allows you to either amend your previously filed return or file a completely new one for the same time period but with the corrected information. 

    Mail the amended return, along with any underpaid taxes, penalties, and interest, to:

    Comptroller of Public Accounts, 111 E. 17th Street, Austin, Texas 78774-0100

    How Often will I be Required to File and Pay Sales Tax in Texas? 

    When you register for a Texas sales tax license, the state will assign you a sales tax filing frequency and due dates.

    The more sales tax liability you have in a state, the more often you need to file and remit tax.

    Texas Sales Tax Due Dates

    Texas sales tax filings are due on the 20th of the month after the end of the taxable period. 

    Texas PeriodFiling Due Date
    January 2023February 21, 2023
    February 2023March 20, 2023
    March 2023April 20, 2023
    April 2023May 22, 2023
    May 2023June 20, 2023
    June 2023July 20, 2023
    July 2023August 21, 2023
    August 2023September 20, 2023
    September 2023October 20, 2023
    October 2023November 20, 2023
    November 2023December 20, 2023
    December 2023January 21, 2023

    Texas Quarterly Sales Tax Filing Due Dates:

    Taxable PeriodFiling Due Dates
    Q1 (Jan-March) 2023April 20, 2023
    Q2 (Apr-June) 2023July 20, 2023
    Q3 (July-Sept) 2023October 20, 2023
    Q4 (Oct-Dec) 2023January 20, 2024

    Texas Annual Sales Tax Filing Due Date:

    Taxable PeriodFiling Due Date 
    2023January 20, 2024

    Let The Experts Handle Your Sales Taxes

    Filing sales tax takes up precious time and effort that could be better spent on other key aspects of running your business.

    And that’s exactly why you need Zamp!

    Zamp is a white glove solution that offers precise calculations and click-to-approve registrations and filings to manage and file your taxes on time. This way, an expert platform and team will handle all the heavy lifting while you focus on the exciting stuff that makes your business scale.

    Get started with Zamp now! 

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