Austin, Texas Sales Tax Rate

Economic Context. Austin is the fastest-growing major city in the US and has become the country's hottest tech hub.

The combined sales tax rate in Austin is 8.250%, composed of the Texas state rate of 6.250% plus a local portion of 2.000%.

Key industries driving Austin's economy include Technology/SaaS, Higher Education, Government, Music/Entertainment — each may have distinct sales tax treatment under Texas law.

The formula to calculate sales tax for any purchase:

For a $150.00 purchase in Austin: tax is $12.38 ($150.00 × 0.08250), total is $162.38.

Sales tax in Austin is administered locally by Travis County / City of Austin. At 8.25%, Austin matches all other major TX cities.

Special tax rules specific to Austin:

• TX state 6.25% + Travis County + City of Austin = 8.25% (2% local cap). Groceries exempt. No state income tax. Back-to-school holiday. Austin is the fastest-growing major city in the US.

Austin-specific: Austin's tech boom (Tesla, Apple, Google, Meta, Oracle) generates enormous B2B purchasing.

Travis County's local tax combines with the City of Austin to reach the 2% cap.

While sales tax is collected by registered vendors at the point of sale, use tax is a self-assessed tax that applies when taxable goods are purchased from a vendor who did not collect sales tax. The rates for both are identical: 8.250%.

If you purchase equipment, software, or supplies from out-of-state merchants and no tax was charged, you are legally obligated to report and pay use tax to Texas Comptroller of Public Accounts. Use tax audits are common — failure to accrue on untaxed invoices is a frequent audit finding.

Businesses with physical presence or economic nexus in Texas must register with Texas Comptroller of Public Accounts before collecting tax.

For full registration, filing, exemption certificate, and audit guidance, see the Texas sales tax guide.

Businesses in Austin must maintain resale certificates and transaction records to comply with Texas tax audits. If you sell wholesale, obtain a valid resale certificate from the buyer.

For detailed guidance, see the Texas sales tax page.