Texas sales tax, a guide for owners
Texas sales tax is 6.25% at the state level, plus up to 2% local, so 8.25% at most. You need a free sales and use tax permit before your first taxable sale, you file monthly, quarterly or yearly depending on how much you collect, and returns are due on the 20th after each period.
Updated November 2026 · By Pankil Kumar, Managing Partner
Quick facts
- Rate. 6.25% state plus up to 2% local
- Permit. Sales and use tax permit from the Comptroller
- Due. The 20th of the month after each period
What is the sales tax rate in Texas?
The state rate is 6.25%. Cities, counties, transit authorities and special purpose districts can add up to 2% more, for a combined 8.25% at most. Dallas, Houston, Austin, San Antonio and Fort Worth are all at 8.25%. Use the Comptroller's rate locator for any address.
Sellers with a place of business in Texas generally charge the local rate where the sale happens from (their location). Remote sellers can choose a single local use tax rate instead of tracking every local rate.
What's taxable in Texas?
All tangible goods are taxable unless an exemption applies, like most groceries and prescription drugs. Texas also taxes more services than most states, including:
- Data processing (taxable on 80% of the charge) and information services
- Repair and remodeling of nonresidential property
- Real property services like landscaping, janitorial and pest control
- Security services
- Amusement services and some personal services
If you sell services, check yours before assuming they're exempt. Labor on new construction and on residential repair and remodeling is generally not taxable.
How do I get a permit?
Apply online with the Comptroller before your first taxable sale. The permit is free, though the Comptroller may ask some businesses for a security bond. You'll need your EIN or SSN, business details and an estimate of monthly taxable sales.
How often do I file?
| You owe on average | You file |
|---|---|
| $1,500 or more a month | Monthly |
| Less than $1,500 a month | Quarterly |
| Less than $1,000 a year | Yearly (if the Comptroller approves) |
Returns and payment are due on the 20th of the month after the period ends. File on time and you keep a discount of 0.5% of the tax, and more if you prepay. You file a return even in periods with no sales.
Do remote sellers owe Texas sales tax?
Yes, once their Texas sales top $500,000 in the past 12 months. Marketplace providers like Amazon and Etsy collect for their sellers on marketplace sales. If you also sell into other states, see our economic nexus thresholds by state.
Sources
- Texas Comptroller: Franchise tax
- Texas Comptroller: Sales and use tax
- Texas Comptroller: Sales tax rate locator
General information, not tax advice for your situation.
Selling in more than one state?
We check where you owe and file the returns.
See our sales tax serviceWhat is the Texas sales tax rate?
6.25% state, plus up to 2% local, for 8.25% at most. Most major cities charge the full 8.25%.
Is a Texas sales tax permit free?
Yes. The Comptroller doesn't charge for it, though some businesses are asked for a security bond.
When is Texas sales tax due?
The 20th of the month after each filing period. If the 20th falls on a weekend or holiday, it moves to the next business day.
Are services taxable in Texas?
Many are, including data processing, landscaping, janitorial, security and repair of nonresidential property. Check your service before you start billing.
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