The Texas sales tax rate is 6.25% at a state level. However, most Texas businesses and out-of-state sellers shipping into Texas collect at a combined rate that includes city, transit, and special district taxes on top of the state base. In most major cities, that combined rate hits the statutory cap of 8.25%.

Below, we’ll cover where local rates come from, the combined rates across Texas’s biggest cities and counties, and some things that businesses need to get right on registration, exemptions, and filing.

Highlights

• Texas’s base sales tax rate is 6.25%, but many major cities reach the maximum combined rate of 8.25% when local taxes are added.

• Texas uses a destination-based system, which means you collect at the rate that applies where your customer receives the goods.

• Registration, rate accuracy, and exemption documentation are the three areas where businesses most commonly make mistakes with Texas sales tax compliance.

What is the Texas sales tax rate?

Texas has a state sales tax rate of 6.25%. This applies to most retail sales of tangible personal property and certain services, including data processing, information services, and amusement services. Texas doesn’t tax groceries, prescription drugs, or most agricultural items.

Local jurisdictions can add their own taxes on top of the state rate, which brings the maximum combined sales tax rate to 8.25%.

How does Texas’s sales tax rate work?

Texas uses a destination-based sales tax system. That means tax is calculated based on where the buyer takes possession of the goods, or where it’s delivered if shipped.

You’re required to register and collect Texas sales tax if you establish nexus, which can happen in two ways:

• Physical nexus: Having a physical presence, such as a store, warehouse, office, or even a sales representative working in the state

• Economic nexus: Earning more than $500,000 in Texas sales in the previous 12 months

Once registered with Texas, you collect the combined rate at the point of sale, file returns on a monthly, quarterly, or annual schedule (depending on sales volume), and remit collected tax to the state comptroller.

The Texas Comptroller distributes local portions to the appropriate jurisdictions. You don’t file separately with cities, counties, or districts, a major administrative advantage over some states.

What are the local sales tax rates in Texas?

Local jurisdictions can add taxes on top of the 6.25% state rate, but Texas law caps the combined total at 8.25%. Cities can charge up to 2% in sales tax, and 125 of the 254 Texas counties add their own sales tax too. Special-purpose districts, including transit authorities, municipal development districts, and crime control districts, can add fractions of a percent on top of city and county rates. Emergency services districts can levy small additional amounts within their boundaries.

The result is that many Texas addresses sit within multiple overlapping taxing jurisdictions at once. A business in Houston city limits typically collects at 8.25%, while a business just outside city limits in unincorporated Harris County collects less because fewer jurisdictions apply.

2026 Texas sales tax range

What are Texas sales tax rates by city?

Most large Texas cities collect the maximum 8.25% combined rate. The rates below reflect the minimum combined rate within city limits. Special districts might increase rates further in some areas.

Most major cities allocate the full 2% local allowance across city taxes, transit authorities, and special districts. Lower combined rates are more common in smaller municipalities and unincorporated areas.

What are Texas sales tax rates by county?

County-level sales taxes are less common in Texas than in many other states. Many counties don’t impose a county-level sales tax. The rates below reflect some minimum combined rates, typically found in unincorporated areas.

In many populated areas, local jurisdictions push rates closer to the 8.25% cap. These county figures represent the floor, not the rate that most businesses collect.

How do you calculate Texas’s sales tax rate?

Start with the 6.25% rate, then add any local taxes that apply at the delivery or sale address.

Because special district boundaries don’t align with city or county lines, the most reliable method is to use the Texas Comptroller’s address-level lookup tool. Stripe’s sales tax calculator can help you work through the numbers fast and calculate specific transactions.

If you’re handling high transaction volumes or selling across multiple Texas locations, tools such as Stripe Tax can determine the correct combined rate for each transaction based on the customer’s address, apply it at checkout, and stay current as local rates change.

What do Texas sales tax rates mean for your business?

There are a few steps involved in getting sales tax in Texas right. First, you’ll need to register with the Texas Comptroller before you collect tax. Registration is free and is done through the comptroller’s eSystems platform.

Once you’re registered, you’ll need to ensure you’re charging the correct rate: undercollection means you might owe the difference out of pocket if audited, and overcollection creates problems with customers and potential refund obligations. Texas audits typically look back four years. If your business sells statewide or across multiple locations, managing those can be a real challenge. Automated solutions such as Stripe Tax can help determine the correct rate, apply it at checkout, and stay current as local jurisdictions change.

You’ll also need to file on time at your assigned frequency: all filing is due by the 20th of the month following the end of the reporting period. Texas offers a 0.5% discount on tax due for timely filing and paying, plus a 1.25% discount for prepaying.

If you sell to tax-exempt buyers (e.g., nonprofits, resellers, manufacturers purchasing raw materials), you must collect valid exemption certificates before skipping tax collection. Texas accepts a sales and use tax exemption certification (Form 01-339). Keep those certificates organized; they’re essential during audits.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, VAT, and GST on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful API.

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax, or get started today.