Texas Sales Tax Calculator

Calculate 2026 sales tax for Texas using the combined 8.20% rate (state + average local).

✓ Texas Specific✓ 8.20% Rate✓ Updated 2026

The price of the item in Texas before tax.

Combined state + average local rate, 2026 data.

Texas Example: A $500.00 purchase at the 8.20% rate results in $41.00 in sales tax, for a total of $541.00.

How Texas Sales Tax Works

Texas uses a combination of state and local taxes. The state-level rate is 6.25%. On top of this, most counties and cities in Texas levy their own taxes, which average out to 1.95% statewide. When you shop in Texas, you pay the combined rate at the point of sale.

Filing and Remittance

If you are a business owner selling in Texas, you are responsible for collecting this 8.20% tax from your customers and remitting it to the Texas Department of Revenue. Failure to do so can result in significant penalties and interest.

For informational purposes only. Tax rates change frequently — verify with your state's Department of Revenue before filing. This tool is not a substitute for professional tax advice.

· Rates verified quarterly from the Tax Foundation and state Departments of Revenue.

M. Imtinan Farooq

Expertly reviewed by M. Imtinan Farooq, Data Engineer & Finance Analyst

Imtinan is a Data Engineer with a specialized focus on Financial Systems and multi-state tax modeling. You can connect with him and verify his professional background on LinkedIn. Our 2026 data is audited quarterly against the latest Tax Foundation and Department of Revenue publications.

Verified Data Sources: Tax Foundation · State DORs · Canada Revenue Agency · EU VAT Database

2026 sales tax rates by state

Select a state to see its detailed 2026 sales tax calculator and formula.

StateState RateAvg. LocalCombined
Alabama4.00%5.24%9.24%
Alaska0.00%1.76%1.76%
Arizona5.60%2.77%8.37%
Arkansas6.50%2.93%9.43%
California7.25%1.57%8.82%
Colorado2.90%4.82%7.72%
Connecticut6.35%0.00%6.35%
Delaware0.00%0.00%0.00%
Florida6.00%1.05%7.05%
Georgia4.00%3.37%7.37%
Hawaii4.00%0.44%4.44%
Idaho6.00%0.02%6.02%
Illinois6.25%2.49%8.74%
Indiana7.00%0.00%7.00%
Iowa6.00%0.94%6.94%
Kansas6.50%2.20%8.70%
Kentucky6.00%0.00%6.00%
Louisiana4.45%5.10%9.55%
Maine5.50%0.00%5.50%
Maryland6.00%0.00%6.00%
Massachusetts6.25%0.00%6.25%
Michigan6.00%0.00%6.00%
Minnesota6.88%0.58%7.45%
Mississippi7.00%0.07%7.07%
Missouri4.22%4.10%8.33%
Montana0.00%0.00%0.00%
Nebraska5.50%1.46%6.96%
Nevada6.85%1.38%8.23%
New Hampshire0.00%0.00%0.00%
New Jersey6.63%0.00%6.63%
New Mexico5.00%2.73%7.73%
New York4.00%4.52%8.52%
North Carolina4.75%2.22%6.97%
North Dakota5.00%1.85%6.85%
Ohio5.75%1.48%7.23%
Oklahoma4.50%4.47%8.97%
Oregon0.00%0.00%0.00%
Pennsylvania6.00%0.34%6.34%
Rhode Island7.00%0.00%7.00%
South Carolina6.00%1.43%7.43%
South Dakota4.20%1.90%6.10%
Tennessee7.00%2.55%9.55%
Texas6.25%1.95%8.20%
Utah4.85%2.21%7.06%
Vermont6.00%0.24%6.24%
Virginia4.30%1.33%5.63%
Washington6.50%2.72%9.22%
Washington D.C.6.00%0.00%6.00%
West Virginia6.00%0.39%6.39%
Wisconsin5.00%0.44%5.44%
Wyoming4.00%1.36%5.36%

Frequently asked questions

Quick answers to the most common questions users ask.

What is the Texas state sales tax rate in 2026?
The baseline state sales and use tax rate in Texas is 6.25%. This base rate applies to all retail sales, leases, and rentals of most goods, as well as taxable services. Source: Texas Comptroller - Sales and Use Tax
What is the maximum combined sales tax rate in Texas?
The maximum combined sales tax rate a consumer will pay in Texas is 8.25%. Local taxing jurisdictions, such as cities, counties, and special purpose districts, are allowed to impose up to an additional 2% on top of the 6.25% state rate. Source: Texas Comptroller - Sales and Use Tax
How do I know which local tax rates to apply in Texas?
Texas utilizes a destination-based sales tax system for the vast majority of retail transactions. This means the total sales tax rate is determined by the physical address where the customer takes possession of the goods (the "ship-to" address). While the state base rate is 6.25%, local jurisdictions (cities, counties, transit authorities, and special purpose districts) can add up to another 2.00%, capping the total at 8.25%. Businesses must track which specific local taxing entities cover each delivery address to ensure they don't over-collect or under-collect, as ZIP codes often cross multiple jurisdictional boundaries. Source: Texas Comptroller - Sales and Use Tax 2026
Are groceries taxed in Texas?
Generally, standard groceries are exempt from Texas sales tax. This includes items like flour, sugar, bread, milk, eggs, fruits, and vegetables. However, prepared food, candy, and soft drinks (including flavored water and sports drinks) are subject to sales tax. Source: Texas Comptroller - Grocery and Convenience Stores
Are snacks taxable in Texas?
It depends on the packaging. Snack items like chips, crackers, and granola bars are taxable if sold in an individual-sized portion (less than 2.5 ounces) or from a vending machine. However, if those same snacks are sold in larger, non-individual sizes or multi-packs, they are generally not taxable. Source: Texas Comptroller - Grocery and Convenience Stores
When is the 2026 Texas Sales Tax Holiday?
The 2026 Texas sales tax holiday runs from Friday, August 7, through midnight on Sunday, August 9. During this weekend, shoppers can buy most clothing and footwear priced under $100 tax-free. Source: Texas Comptroller - Sales Tax Holiday
Is all clothing tax-free during the Texas Sales Tax Holiday?
No. While general clothing and shoes under $100 are exempt, items designed specifically for athletic activity or protective use (like golf cleats or football pads) remain taxable. Additionally, accessories such as jewelry, handbags, and wallets do not qualify for the exemption. Source: Texas Comptroller - Sales Tax Holiday
Are vitamins and over-the-counter medicines taxable in Texas?
No. Texas exempts over-the-counter drugs and medicines that are required by the FDA to be labeled with a "Drug Facts" panel. This includes items like aspirin, cough syrup, and wound care. Most dietary supplements and vitamins are also exempt. Source: Texas Comptroller - Health Care Items
Are diapers and baby wipes taxed in Texas?
No, you do not pay sales tax on these items in Texas. Following the passage of Senate Bill 379, Texas eliminated the state sales tax on a variety of family care items, including both adult and children's diapers, baby wipes, and baby bottles. Source: Texas Comptroller - Family Care Items
Is there a "pink tax" on feminine hygiene products in Texas?
No, Texas no longer taxes feminine hygiene products. Items such as tampons, sanitary napkins, menstrual cups, sponges, and pads sold for the principal purpose of feminine hygiene are permanently exempt from Texas sales and use tax. Source: Texas Comptroller - Family Care Items
Are maternity clothes taxable?
Maternity clothing is completely exempt from Texas sales tax, categorizing it alongside other essential family care items. Source: Texas Comptroller - Family Care Items
Are bandages and wound care dressings taxed?
No, wound care dressings—including sterile adhesive bandages, rolls or pads of gauze, and medical tape used to secure dressings to a patient—are exempt from Texas sales tax. Source: Texas Comptroller - Health Care Items
Do I have to pay sales tax on a gun safe?
No, you do not. Texas law explicitly exempts "firearm safety equipment" from sales tax. This exemption includes gun lock boxes, gun safes, barrel locks, trigger locks, and even firearm safety training manuals. Source: Texas Comptroller - Firearm Safety Equipment
Are wheelchairs and mobility aids subject to sales tax?
Wheelchairs, wheelchair cushions, repair parts, wheelchair batteries, and safety belts designed specifically for a wheelchair are permanently exempt from sales tax by law. However, electronic mobility aids (like specialized scooters) and accessories for mobility carts generally require a doctor's prescription to qualify for the tax exemption. Source: Texas Comptroller - Health Care Items
Is there a sales tax break for modifying a car for a disability?
Yes. If a motor vehicle is modified to be used by someone with an orthopedic disability (such as adding hand controls, raised ceilings, or wheelchair lifts), the vehicle itself, the adaptive devices, and the labor to install them are exempt from tax. The modified vehicle must be used at least 80% of the time to transport or be driven by the person with the disability. Standard factory options like power steering do not qualify for this exemption. Source: Texas Comptroller - Motor Vehicle Exemptions
Are non-prescription medicines for pets taxable in Texas?
Yes. While sales tax is not due on drugs or medicines prescribed by a licensed practitioner for animals, sales tax is due on all other non-prescription drugs and medicines purchased for use in the treatment of animals. Source: Texas Comptroller - Health Care Items
How does Texas determine if an over-the-counter medicine is tax-exempt?
A product is presumed to be a tax-exempt drug or medicine for sales tax purposes if it is labeled, or required to be labeled, with a "Drug Facts" panel pursuant to FDA regulations. Source: Texas Comptroller - Health Care Items
Do I pay sales tax on a hospital bed for home use?
No. Sales or use tax is not due on the sale, lease, or rental of hospital beds or their replacement parts. Source: Texas Comptroller - Health Care Items
Are hearing aids and corrective lenses taxable?
No. Texas law states that sales or use tax is not due on medical equipment meeting the definition of a brace, corrective lens, hearing aid, orthopedic appliance, prosthetic device, or dental device. Source: Texas Comptroller - Health Care Items
Are specialized eating utensils for the elderly or disabled taxable?
No. Sales tax is not due on eating utensils (such as spoons, forks, or knives) that are specifically designed to facilitate independent eating for individuals who cannot eat independently because of an injury, disease, physical or mental disability, or advanced age. Source: Texas Comptroller - Health Care Items
Are adaptive computer devices for the deaf or blind subject to sales tax?
No. Sales tax is not due on adaptive devices or adaptive software for computers used by deaf persons, nor is it due on specific items utilized by the legally blind. Source: Texas Comptroller - Health Care Items
Do medical clinics pay sales tax when buying therapeutic appliances for patient use?
Yes. Health care providers, such as doctors, clinics, and hospitals, owe tax on therapeutic appliances and related supplies they use in providing nontaxable health care services, unless they qualify as an exempt organization. Source: Texas Comptroller - Health Care Items
How does Texas tax SaaS if my employees are spread across multiple states?
If a business purchases cloud-based software but its employees use it in multiple states, Texas allows the service to be allocated. The business only owes Texas sales tax on the percentage of the service utilized within Texas, and the standard 80% taxability rule for data processing still applies to that Texas-specific portion. Source: Texas Comptroller - Data Processing Services
When is custom software completely exempt from Texas sales tax?
Custom software is non-taxable only if all intellectual property rights are transferred to the customer and the developer cannot reuse the code for other clients. If the developer retains any licenses or ongoing usage rights, the software becomes fully taxable. Source: Texas Comptroller - Data Processing Services
Is software maintenance and support taxable?
The taxability of software maintenance or installation services directly matches the taxability of the underlying software. If the software itself is taxable, the maintenance agreement sold alongside it is also taxable. Source: Texas Comptroller - Data Processing Services
Are newsletters or financial reports taxable?
Yes, Texas taxes information services, which include subscriptions to newsletters, financial market reports, and scouting reports. However, just like data processing, 20% of the charge for information services is exempt from tax, meaning you only charge sales tax on 80% of the total price. Source: Texas Comptroller - Taxable Services
Does Texas tax Software as a Service (SaaS) and digital downloads?
Yes, Texas is one of the more unique states regarding cloud software. The Texas Comptroller treats SaaS as a taxable "Data Processing Service." However, Texas provides a massive legislative benefit: 20% of the charge for data processing or information services is exempt from sales tax. This means you only apply the combined state and local tax rate to 80% of the total invoice amount. This "80/20 rule" also applies to digital services like website hosting, data entry, and computerized information retrieval. Pure digital downloads of music, movies, or e-books are fully taxable at 100% of the price. Source: Texas Comptroller - Data Processing Services 2026
Are SEO and digital marketing services taxable in Texas?
Yes. In Texas, search engine optimization (SEO) and website development are categorized as taxable information and data processing services. However, services strictly limited to email marketing and pure consulting remain exempt. Source: Texas Comptroller - Data Processing Services
If I run a web design agency, do I need to charge sales tax on website builds?
Yes, under the Texas Administrative Code, graphic design and website development are considered taxable services. Providers of these services must hold a permit and collect applicable state and local taxes. Source: Texas Comptroller - Data Processing Services
Is custom contract programming treated the same as off-the-shelf software?
No. Providing \"contract programming\" services—where custom code is written specifically for one client and all rights are transferred—is generally not subject to Texas sales tax. Conversely, canned or off-the-shelf software is treated as taxable tangible personal property. Source: Texas Comptroller - Data Processing Services
How do I calculate tax on cloud software if my staff is spread across multiple states?
Texas allows for multi-state allocation. If your business purchases cloud-based software but it is used by employees across different states, you only apply the Texas sales tax (and the 80% data processing rule) to the specific percentage of the service utilized by employees physically located within Texas. Source: Texas Comptroller - Data Processing Services
Are software maintenance agreements taxable?
The Comptroller considers the repair, maintenance, or restoration of a computer program or software to be taxable. If the underlying software is taxable, the maintenance agreement is generally taxable as well. Source: Texas Comptroller - Data Processing Services
Are landscaping and lawn care services taxable in Texas?
Yes. Landscaping services done at a residential household by a self-employed individual are taxable as real property services. Source: Texas Comptroller - Taxable Services
Are janitorial and office cleaning services taxable?
Yes. Tax is due on the charge to clean a home, office, warehouse, garage, restaurant, or any other building. Source: Texas Comptroller - Taxable Services
Is household babysitting or basic housekeeping taxable?
No. There is no tax on the charges of a self-employed person who provides traditional household services such as housekeeping, babysitting, or cooking, provided the person is an employee of the household and not acting as a subcontractor for a third party (like a maid service). Source: Texas Comptroller - Taxable Services
Is dry cleaning and laundry service taxable in Texas?
Yes. Sales tax is due on laundry, cleaning, and garment services, which includes dry cleaning services for garments or rugs. Source: Texas Comptroller - Taxable Services
Are coin-operated laundry machines subject to sales tax?
No. Sales tax is not due on personal services provided through coin-operated machines that are actively operated by the customer. Source: Texas Comptroller - Taxable Services
Is carpet cleaning taxable?
Yes. Sales tax is due on carpet cleaning and repairing, with the exception of carpet repairing performed within residential structures. Source: Texas Comptroller - Taxable Services
Is swimming pool maintenance taxable?
Yes. Swimming pool maintenance is considered a taxable real property service whether it is done on residential or nonresidential (commercial) property. This includes testing water, adding and balancing chemicals, cleaning filters, and vacuuming. Source: Texas Comptroller - Taxable Services
Why is my gym membership taxed, but personal training is not?
Texas classifies fitness clubs and gyms as providers of "amusement services," which are taxable under state law. However, if personal training is billed separately and not tied to general facility access, it may be exempt as a nontaxable professional or instructional service. Source: Texas Comptroller - Amusement Services
Can a gym membership be tax-exempt if my doctor prescribes it?
Yes. Texas recognizes limited exemptions for memberships purchased under a medical prescription from a licensed healthcare provider. If the membership is used solely for the prescribed treatment plan, the portion attributable to that medical activity can be tax-exempt. Source: Texas Comptroller - Amusement Services
What other surprising amusement services are taxed?
Along with gym access and concert tickets, Texas taxes a wide net of amusement services, which explicitly includes sightseeing tours, fortune telling, and online games. Source: Texas Comptroller - Amusement Services
Are gym memberships and concert tickets taxable in Texas?
Yes. Texas taxes "Amusement Services." This includes admission to movie theaters, concerts, sporting events, and memberships to health clubs or gyms. Source: Texas Comptroller - Amusement Services
How is sales tax calculated for home repairs vs. new construction?
Texas distinguishes between "residential" and "non-residential" (commercial) property.
  • Residential: Labor for repairs or remodeling is generally not taxable. You only pay sales tax on the materials used.
  • Non-residential: Both labor and materials for repairs, remodeling, or restoration are 100% taxable.
  • New Construction: Labor for building a brand-new structure (residential or commercial) is not taxable.
Source: Texas Comptroller - Real Property Repair and Remodeling
What is the difference between a "Lump-Sum" and "Separated" contract?
This determines who pays the tax.
  • Lump-Sum: The contractor is considered the consumer. They pay tax when they buy materials and do not charge the customer tax on the final bill.
  • Separated: The contractor is considered a retailer. They buy materials tax-free (using a resale certificate) and then charge the customer sales tax on the materials (and labor, if commercial).
Source: Texas Comptroller - Contractors and Related Services
Does Texas have a manufacturing sales tax exemption?
Yes. Texas offers a massive exemption for "Manufacturing." If a piece of equipment, a chemical, or a component is used directly in the actual manufacturing process to change something into a new product for sale, it is 100% exempt from sales tax. Source: Texas Comptroller - Manufacturing Exemptions
Is electricity or natural gas taxable for businesses?
Residential use is exempt. For businesses, utilities are generally taxable unless the business is "predominantly" (more than 50%) engaged in manufacturing, processing, or another exempt activity. In those cases, the business can file a "predominant use study" to stop paying sales tax on their power bills. Source: Texas Comptroller - Utility Exemptions
Do charities have to collect sales tax at bake sales or fundraisers?
Religious, charitable, and educational organizations (like 501(c)(3) entities) are permitted to hold two one-day, tax-free sales or auctions per calendar year. During these 24-hour periods, they do not need to collect sales tax on items sold for under $5,000. Source: Texas Comptroller - Exempt Organizations
If a school uses a third-party company to sell wrapping paper, who collects the tax?
If an exempt organization enters into a contract with a fundraising company to sell taxable items, the fundraising company is legally the seller, not the school. The fundraising company must report and collect the sales tax, even if the school actually markets the items and collects the money. Source: Texas Comptroller - Exempt Organizations
Are streaming services like Netflix and Spotify taxed in Texas?
Yes. Texas imposes a sales tax on streaming services, meaning subscribers to platforms like Netflix, Hulu, or Spotify will see sales tax added to their monthly bills. Source: Texas Comptroller - Taxable Services
Are printed newspapers exempt from sales tax?
Yes. A newspaper sold or distributed by individual copy or by subscription is exempted from sales tax, provided it is printed on newsprint, averages a sales price of $3 or less per copy, and is distributed at short intervals for the dissemination of general news. Source: Texas Comptroller - Taxable Services
Are magazines and catalogs taxed the same as newspapers?
No. The definition of an exempt "newspaper" explicitly does not include magazines, handbills, circulars, flyers, or sales catalogs, unless the printed item is actually printed for distribution as a part of a newspaper. Source: Texas Comptroller - Taxable Services
Are portable generators ever tax-free in Texas?
Yes, during the Texas Emergency Preparation Supplies sales tax holiday. During this specific event, portable generators priced at $3,000 or less, hurricane shutters under $300, and specific emergency supplies under $75 can be purchased entirely tax-free. Source: Texas Comptroller - Emergency Prep Holiday
Does Texas offer a tax break for buying energy-efficient appliances?
Yes. Texas holds an Energy Star sales tax holiday where consumers can buy qualifying energy-efficient products tax-free. Examples of eligible items include Energy Star air conditioners priced at $6,000 or less and refrigerators priced at $2,000 or less. Source: Texas Comptroller - Energy Star Holiday
What is the WaterSense sales tax holiday?
Texas holds a dedicated sales tax holiday for water conservation products. During this period, consumers can purchase any WaterSense-labeled product, regardless of the retail price, without paying sales tax. Source: Texas Comptroller - WaterSense Holiday
Can I put an item on layaway during a tax holiday and get it tax-free?
Yes. You can buy qualifying items tax-free during a holiday weekend if you either place a qualifying item on layaway or make the final payment on an existing layaway during that specific weekend. Source: Texas Comptroller - Sales Tax Holiday
Do shipping charges count toward the $100 limit during the August clothing tax holiday?
Yes. Because clothing and school supplies must total less than $100 to qualify for the exemption, you must include delivery charges in the item's total price. For example, a $95 pair of jeans with a $10 delivery charge totals $105, making the purchase fully taxable. Source: Texas Comptroller - Sales Tax Holiday
Do restaurant owners pay sales tax on commercial ovens and deep fryers?
No. Kitchen processing equipment used specifically to prepare food or beverages for sale—such as ovens, deep fryers, smokers, and mixers—is generally tax-exempt for restaurants. However, hand tools like manual egg beaters or knives remain taxable. Source: Texas Comptroller - Restaurants
Are restaurant employee uniforms subject to sales tax?
Yes. There is no exemption for employee uniforms or work apparel sold to employees in Texas. However, items required by law for public health, such as hairnets and gloves worn during food preparation, do qualify for a tax exemption. Source: Texas Comptroller - Restaurants
How is sales tax calculated on a "Buy One, Get One Free" meal?
When a restaurant sells two meals for the price of one, sales tax is only due on the exact amount actually charged to the customer. The \"free\" meal is not taxed. Source: Texas Comptroller - Restaurants
Do restaurants owe tax if they give a meal away for free?
While the complimentary meal itself isn't taxed to a customer, the restaurant must pay tax on any taxable ingredients used to make it. For example, the restaurant must accrue tax on soft drinks given away, but raw meat and vegetables used in the meal are non-taxable. Source: Texas Comptroller - Restaurants
Are mandatory tips and gratuities subject to sales tax?
Reasonable mandatory gratuities are exempt from sales tax if they are strictly separated from the meal price, identified clearly as a tip, and fully disbursed to qualified employees. However, if a mandatory tip exceeds 20% of the original sales price of the meal, the entire gratuity charge becomes subject to tax. Source: Texas Comptroller - Restaurants
Is a voluntary tip left on a credit card receipt taxable?
No. Voluntary gratuities remain fully exempt from Texas sales tax, regardless of the amount given by the customer. Source: Texas Comptroller - Restaurants
What is the sales tax rate for cars in Texas?
Interestingly, motor vehicles are not taxed under the standard "Sales and Use Tax" (6.25% + 2% local). Instead, they fall under the Motor Vehicle Sales and Use Tax, which is a flat 6.25% statewide rate. There are typically no local taxes applied to vehicle purchases in Texas. Source: Texas Comptroller - Motor Vehicle Sales Tax
Is there a tax on buying a boat?
Yes, but like cars, it’s separate. Texas imposes a 6.25% Boat and Boat Motor Sales and Use Tax. Unlike cars, the maximum tax for a boat purchased out-of-state and brought into Texas is capped at $15,000 for certain "use tax" scenarios. Source: Texas Parks and Wildlife - Boat Taxes
Do out-of-state online retailers have to collect Texas sales tax?
Yes, if they meet the economic nexus threshold. Remote sellers must obtain a tax permit and collect Texas sales tax if their total revenue from sales into Texas exceeds $500,000 in the preceding twelve calendar months. Source: Texas Comptroller - Remote Sellers
Do tax-exempt sales count toward the $500,000 Texas nexus threshold?
Yes. In Texas, all sales—including non-taxable transactions, wholesale/resale transactions, and sales made through marketplace facilitators—count toward calculating the $500,000 economic nexus threshold. Source: Galvix - Texas Sales Tax Nexus Guide
Can remote sellers use a flat local tax rate instead of exact addresses?
Yes. To simplify compliance, remote sellers without a physical presence in Texas can opt to collect a Single Local Use Tax Rate rather than calculating the exact local rate for every delivery address. For 2026, the current single local use tax rate is 1.75%. Source: Texas Comptroller - Remote Sellers
Does storing inventory in a Texas warehouse trigger sales tax obligations for an out-of-state seller?
Yes. Storing inventory in Texas through a third-party fulfillment center (including Amazon FBA warehouses) creates physical nexus. This means the business has an immediate Texas sales tax registration obligation before their first sale, regardless of their revenue volume. Source: Texas Comptroller - Remote Sellers
What happens if I sell an item on credit but the customer never pays the bill?
Texas allows sellers to claim a \"bad debt\" deduction. If you enter the unpaid portion as a bad debt on your books and claim it as a deduction for federal tax purposes, you can withhold the payment of sales tax on that specific uncollected amount. Source: Texas Comptroller - Interest and Penalties
Can I get a tax credit if I refund a customer for a defective product?
Yes. A seller is entitled to a credit for the amount of taxes paid if they issue a refund to a purchaser under a bona fide agreement, such as settling a claim for an alleged breach of warranty on a taxable item. Source: Texas Comptroller - Interest and Penalties
What is the absolute maximum local use tax rate I can charge for a delivery?
The state enforces a strict 2% cap on combined local sales and use taxes. You can never collect more than a total of 2% in combined local taxes, meaning the total checkout rate across Texas will never exceed 8.25%. Source: Texas Comptroller - Sales and Use Tax
In what order must local use taxes be applied during delivery calculations?
If you are shipping a taxable item to a jurisdiction with higher local use taxes, you must apply them in the following strict hierarchy: City, County, Special Purpose Districts (SPDs), and finally Transit Authorities—stopping immediately if the 2% local cap is reached. Source: Texas Comptroller - Local Sales and Use Tax
Is it legal for a retailer to advertise that "tax is included" in the price?
Yes, it is legal in Texas for a store to advertise that the 8.25% sales tax is already included in an item's price. The business must simply back out the tax amount appropriately when reporting their total sales to the Comptroller. Source: Texas Comptroller - Interest and Penalties
If I sell items at a weekend antique mall or festival, who collects the tax?
It depends entirely on the checkout system. If the market has a central cash register, the market operators must collect, report, and remit the sales tax for all vendors. If there is no central register, every individual seller must hold their own permit and collect their own tax. Source: Texas Comptroller - Fairs, Festivals, Markets and Shows
Can I avoid charging sales tax if I barter or trade items instead of taking cash?
No. If you buy, barter, or trade taxable items with the intent to resell them, you are considered to be engaged in business. You must hold a sales tax permit and collect tax based on the value of the trade. Source: Texas Comptroller - Interest and Penalties
How many items can I sell online or at a garage sale before I have to charge tax?
Texas has an \"occasional sale\" exemption. You can sell one or two taxable items during any rolling 12-month period regardless of their price. Alternatively, you can sell up to $3,000 worth of personal items in a calendar year without collecting tax. Selling a third item, or exceeding the dollar limit, requires you to get a permit. Source: Texas Comptroller - Grocery and Convenience Stores
Do I pay sales tax on CBD or smokeable hemp products?
Yes. Hemp-derived consumable products, including smokeable hemp and THC items, are subject to standard state and local sales tax in retail environments. Source: Texas Comptroller - Grocery and Convenience Stores
If I order an out-of-stock item during the Sales Tax Holiday, is it still tax-free when it ships weeks later?
Yes. If you pay for an eligible item (like a shirt under $100) that must be special-ordered or is currently on backorder during the tax holiday weekend, it qualifies for the exemption even if you pick it up or it ships after the holiday concludes. Source: Texas Comptroller - Sales Tax Holiday
What happens if my credit card declines during an online checkout on the last day of the Tax Holiday?
Timing determines the tax. If a payment processor declines your card late Sunday night during the holiday, and you do not successfully resubmit payment until Monday morning, the purchase is no longer exempt and becomes fully taxable. Source: Texas Comptroller - Sales Tax Holiday
Are all backpacks tax-free during the August Back-to-School holiday?
No. While standard elementary or student backpacks priced under $100 are exempt, items classified as framed backpacks, luggage, briefcases, computer bags, and athletic gym bags do not qualify and remain taxable. Source: Texas Comptroller - Sales Tax Holiday
Can I buy sports cleats tax-free during the clothing tax holiday?
No. Items designed specifically for athletic activity or protective use that aren't normally worn as everyday clothing, such as golf cleats or football pads, do not qualify for the exemption. However, multi-purpose footwear like tennis shoes are exempt. Source: Texas Comptroller - Sales Tax Holiday
Are niche services like debt collection or credit reporting subject to sales tax?
Yes. In Texas, the creation or delivery of a credit report for a fee is a taxable service. Additionally, professional debt collection services are also subject to the state's 6.25% sales tax. Source: Texas Comptroller - Taxable Services
Is valet parking taxable?
Yes. Motor vehicle parking and storage services are completely taxable in Texas. This definition includes charges for valet parking, parking meters, parking decals, and impound fees. Source: Texas Comptroller - Taxable Services
Are shipping and delivery charges taxable in Texas?
Yes. If the item you are selling is taxable, the charges for shipping, handling, and delivery are also taxable—even if they are stated separately on the invoice. If the item is exempt (like most groceries), then the shipping charge for that item is also exempt. Source: Texas Comptroller - Freight, Shipping and Delivery Charges
What is a Texas Resale Certificate and do I need one?
If you are a retailer buying inventory to sell to customers, you should provide a Texas Sales and Use Tax Resale Certificate to your supplier. This allows you to buy those items tax-free. You must have a Texas sales tax permit to validly issue a resale certificate. Source: Texas Comptroller - Resale Certificate Forms
How does "Mixed Beverage Tax" differ from Sales Tax in Texas?
If you run a bar or restaurant, you don't charge "sales tax" on alcoholic drinks. Instead, Texas imposes a Mixed Beverage Gross Receipts Tax (8.5%) paid by the business and a Mixed Beverage Sales Tax (8.25%) paid by the customer. These are separate from the standard 6.25% state sales tax applied to food. Source: Texas Comptroller - Mixed Beverage Taxes
What is the penalty for filing a Texas sales tax return late?
If a permitted business pays their collected sales tax over 30 days after the due date, a 10 percent penalty is assessed. Source: Texas Comptroller - Interest and Penalties
Does Texas offer a financial discount for paying sales tax early?
Yes. Permitted sales taxpayers who prepay their taxes can claim a discount of 0.5 percent for timely filing and paying, plus an additional 1.25 percent specifically for prepaying. Source: Texas Comptroller - Interest and Penalties
Is a Kolache taxable at a Texas bakery?
It depends on the Kolache! Under Texas law, standard fruit or sweet kolaches are considered non-taxable bakery items. However, kolaches that contain meat are only considered non-taxable bakery items if the dough is cooked around the meat. Source: Texas Comptroller - Bakery Items
If I heat up a frozen burrito at a convenience store, do I have to pay sales tax?
No. If a store sells you a cold, frozen burrito (which is a non-taxable food product) and you choose to heat it up yourself using a microwave provided by the store, the item remains non-taxable. However, if the store employee heats the food for you or sells it in a heated state, it becomes taxable prepared food. Source: Texas Comptroller - Prepared Food
Are energy drinks and sports drinks taxed differently than water?
Yes. Unflavored, mineral, spring, and sparkling water are not taxable. However, flavored water, sports drinks, and energy drinks are generally taxable as "soft drinks". An energy drink may only be exempt if it contains milk (or a milk substitute) or is officially labeled with a "Supplement Facts" panel by the FDA, classifying it as a dietary supplement rather than a standard beverage. Source: Texas Comptroller - Soft Drinks
Unique Texas Tax Trivia: The "Snack" Threshold
In Texas, most snacks (like chips, crackers, and granola bars) are tax-exempt if sold in a container larger than 2.5 ounces. If it’s smaller (like a single-serving bag of chips) or sold from a vending machine, it's taxable. Source: Texas Comptroller - Grocery and Convenience Stores
Unique Texas Tax Trivia: Agricultural Exemptions
Texas offers robust exemptions for "Commercial Agriculture." Farmers and ranchers can buy everything from tractors to fence posts tax-free, provided they apply for an Ag/Timber Number from the Comptroller. Source: Texas Comptroller - Agricultural and Timber Exemptions
Unique Texas Tax Trivia: Occasional Sales & Garage Sales
If you hold a garage sale or are a private individual selling a used item (like a lawnmower), you can sell your personal items tax-free as long as you don't hold more than two such sales in a calendar year. If you hold a third, or sell more than two items totaling over $3,000, you are technically a retailer and must get a permit. Source: Texas Comptroller - Occasional Sales
Unique Texas Tax Trivia: The "Data Processing" 20% Discount
If you use your tool for SaaS or IT services, remember the 80/20 rule. Only 80% of the price of "Data Processing" (which includes things like computerized data entry or cloud storage management) is taxable in Texas. Source: Texas Comptroller - Data Processing Services
Unique Texas Tax Trivia: Vaping Tax
As of late 2025, Texas implemented a specific excise tax on e-cigarette nicotine products ($0.05 per milliliter), which is applied in addition to the standard 8.25% sales tax. Source: Texas Comptroller - E-Cigarette Tax
🏛️ IRS Official⚖️ SCOTUS Cited📊 Tax Foundation

Official Sources & Citations

All rates, thresholds, and regulatory guidance cited on this page are sourced from official government publications and non-partisan research institutions.

Federal & National Sources

🏛️

IRS Sales Tax Calculator

The official Internal Revenue Service tool for determining deductible state and local sales tax for federal income tax purposes.

irs.gov
📊

U.S. Census Bureau

Official government repository for quarterly state and local tax revenue statistics and government finance data.

census.gov
⚖️

Supreme Court — Wayfair Decision

The official government opinion for South Dakota v. Wayfair, Inc., establishing modern economic nexus standards for remote sellers.

supremecourt.gov
💼

SBA Business Tax Guide

Official Small Business Administration guidance on understanding federal and state tax obligations for small business owners.

sba.gov
🤝

Streamlined Sales Tax Board

The official inter-governmental organization facilitating the simplification of sales tax administration across 24 member states.

streamlinedsalestax.org

State Departments of Revenue

🌴

California CDTFA

Official CA tax rates portal, address-specific lookup tools, and district tax publications.

cdtfa.ca.gov
🤠

Texas Comptroller

The official Texas sales tax rate locator, local jurisdiction database, and nexus guidance.

comptroller.texas.gov
🍎

New York Tax & Finance

Official NY jurisdiction lookup for combined state, local, and MTA rates, and clothing exemptions.

tax.ny.gov
☀️

Florida Dept. of Revenue

Official FL resource for state sales tax rates, county surtaxes, and annual tax holidays.

floridarevenue.com
🏙️

MyTax Illinois

Official Illinois Department of Revenue portal for address-based tax rate lookups and filings.

tax.illinois.gov
🔔

Pennsylvania Revenue

Official PA portal for sales, use, and hotel occupancy tax rates and regulatory guidance.

revenue.pa.gov
🔍

Ohio 'The Finder'

Official Ohio Department of Taxation tool for looking up rates by address, ZIP, or GPS coordinates.

tax.ohio.gov
🍑

Georgia Dept. of Revenue

Official Georgia sales and use tax rate charts and local jurisdiction tax distribution data.

dor.georgia.gov
⛰️

North Carolina DOR

Official NCDOR portal for state, local, and transit tax rates by county and jurisdiction.

ncdor.gov
🚗

Michigan Treasury

Official Michigan Department of Treasury resources for the statewide 6% sales and use tax.

michigan.gov

TaxesLedger is an independent educational tool. We are not affiliated with any government agency. Rates are verified quarterly; always confirm with your jurisdiction's official Department of Revenue before filing. Last verification: May 15, 2026.

Related calculators

Keep going with another tool from the suite.

Reverse Sales Tax Calculator

Extract pre-tax amounts instantly from any inclusive total. Perfect for auditing receipts, GAAP compliance, and reversing combined state & local sales tax rates.

Sales Tax Comparison by State

Compare 2026 state, county, and local sales tax rates side-by-side. Analyze combined tax brackets and identify states with zero sales tax.

Remove Sales Tax Calculator

Back out sales tax from receipts, business expenses, and invoices. Separate pre-tax revenue from tax liabilities with exact reverse calculations.

Add Sales Tax Calculator

Add sales tax to any transaction. Instantly apply current 2026 rates for all 50 states to compute the correct tax amount and total price.

Tip & Tax Calculator

Split dining bills, calculate tips, and apply sales tax in seconds. Perfect for groups, business lunches, and ensuring fair, itemized splits.

Multi-State Sales Tax Calculator

Calculate multi-state sales tax obligations in a single batch. Crucial for e-commerce sellers managing Wayfair economic nexus thresholds.

Sales Tax Reconciliation Calculator

Reconcile monthly gross receipts and isolate sales tax liabilities for state tax returns. Perfect for e-commerce, retail, and QuickBooks audits.

Sales Tax Holiday Calculator

Track all active 2026 tax-free weekends and back-to-school sales tax holidays. Filter by state to maximize seasonal savings on apparel & electronics.