Texas Sales Tax Calculator (2026)

Most major Texas cities are at the 8.25% combined cap. The 2% local portion is split between the city, the transit authority (Metro, DART, VIA, Capital Metro), and sometimes a county or SPD. Outside city limits, you might pay less.

Drop in a purchase amount and adjust the rate. Texas rates max out at 8.25%.

• Exempt: Unprepared groceries, prescription drugs, OTC medications with a prescription, certain medical devices, residential gas/electricity (in some cities).
• Taxed at full rate: Prepared food (restaurants, hot deli), soft drinks, candy, alcohol, tobacco, most retail goods, vehicle parts, repair services.
• Taxed at different rate: Hotel occupancy (state hotel tax 6% plus local up to 9%), motor vehicles (6.25% flat, no local), mixed beverage tax (8.25% sales tax plus a separate 6.7% mixed beverage gross receipts tax).
• Not subject to sales tax: Real estate transactions, professional services, most labor, healthcare services, education.

Texas has no state income tax. To fund state government, the legislature leans on three main revenue streams: sales tax (about 60% of state tax revenue), oil and gas severance taxes, and franchise tax. Property tax, while massive, is local — counties, cities, and ISDs — not state.

Vehicle sales in Texas use a dedicated Motor Vehicle Sales Tax, not regular sales tax. Key differences:

• Rate: 6.25% flat, no local add-on, regardless of where you buy or live in Texas
• Base: Sale price OR Standard Presumptive Value (SPV) published by the Texas Department of Motor Vehicles, whichever is higher
• Trade-in credit: Trade-in value reduces the taxable amount on a same-transaction vehicle purchase
• When paid: At the county tax assessor-collector's office during title transfer, typically within 30 days of purchase

Example: you buy a used 2022 truck from a private party for $25,000. The SPV is $27,500. Tax owed: $27,500 × 6.25% = $1,719. The Standard Presumptive Value catches private-party transactions where buyer and seller might otherwise underreport the price.

Gifted vehicles (between qualifying family members) get a $10 flat tax. Inherited vehicles transferred to a beneficiary pay no sales tax. Out-of-state vehicles brought into Texas pay the difference between Texas tax and the tax already paid to the prior state (the New Resident Tax is $90 if no prior tax was paid).

If you're moving to Texas with a vehicle, plan for $90 (New Resident Tax) plus title and registration fees. If you're buying in Texas, expect 6.25% on the higher of purchase price or SPV. Dealer-installed financing typically rolls the tax into the loan; private-party purchases require payment at title transfer.

Texas runs three official sales tax holidays per year:

• Emergency Preparation Supplies — late April: Items costing under $75 (smoke alarms, fire extinguishers, batteries, first aid kits), under $300 (chainsaws, generators), or under $3,000 (portable generators for medical needs) are exempt from state and local sales tax. Always falls on the last weekend of April.
• Energy Star and Water-Efficient Products — Memorial Day weekend: Energy Star-rated appliances and water-efficient products are exempt from state sales tax (not local). Appliances over $2,000 may be subject to the regular rate above the cap.
• Back-to-School — early August: Clothing and shoes priced under $100 per item, backpacks under $100, and most school supplies under $100 are exempt from state and local sales tax. Usually the first weekend of August. The big one — Texans buy roughly $1.5 billion in covered items over this weekend.

What does NOT qualify during Back-to-School: clothing accessories ($100+), specialty athletic gear, jewelry, watches, briefcases, luggage, and most electronics. Backpacks count if priced under $100; messenger bags and duffels generally don't.

The tax savings are real: on a $1,500 back-to-school shopping trip, an Austin family saves about $124 (8.25% on covered items). For a family with multiple kids, the holiday meaningfully softens September's budget hit.

Any business selling taxable goods or services in Texas must hold a Texas Sales and Use Tax Permit from the Texas Comptroller. The permit is free, applied for online at comptroller.texas.gov, and typically issued within 2-3 weeks (sometimes same-day for clean applications).

What requires a permit:

• Retail sales of tangible personal property in Texas (clothing, electronics, food prep, vehicles, etc.)
• Out-of-state sellers with Texas nexus (typically $500,000+ in Texas sales annually)
• Marketplace facilitators (Amazon, Etsy, eBay) — though they typically handle collection on behalf of third-party sellers
• Service providers whose services are taxable (data processing, repair, parking, etc.)

Filing frequency depends on volume: monthly (>$1,500/month in tax), quarterly ($83-$1,500/month), or annual (<$83/month). Returns are due the 20th of the month following the filing period. Late filing carries 5% penalty + 1% per month.

Texas Comptroller sales tax audits are common and increasingly automated. Triggers include: large discrepancies between reported sales and 1099-K (credit card processor) reports, sudden volume changes, returns with unusual exemption claims, and certain high-risk industries (cash businesses, used auto, online sellers with mixed-state activity). Keep sales records, exemption certificates, and bank statements for four years (the statute of limitations).

Texas use tax mirrors sales tax for items purchased outside Texas but used inside Texas. The rate is the same (6.25% state + up to 2% local). Most consumers don't think about it, but legally, every Amazon purchase from before 2019, every duty-free item brought back from a trip, and every out-of-state catalog order owes Texas use tax if no Texas sales tax was collected.

In practice, after the 2018 South Dakota v. Wayfair ruling, most large online retailers collect Texas tax automatically — eliminating the consumer-side use tax obligation for those purchases. But it still applies to:

• Out-of-state private-party purchases (vehicles, equipment, art)
• Items brought back from international travel above the duty exemption
• Imports of business equipment from foreign suppliers
• Small out-of-state sellers under the economic nexus threshold who don't collect Texas tax

For consumers, the practical use tax exposure is small. For businesses buying equipment from out-of-state suppliers who don't collect Texas tax, the use tax liability is real and audited regularly. Pay it on your business sales/use tax return rather than discovering it during an audit.

The Texas Comptroller audits sales tax compliance more aggressively than most state revenue agencies. The most common triggers for a Texas sales tax audit:

• 1099-K vs. reported sales mismatch: The Comptroller cross-references credit card processor reports (1099-K) with sales tax returns. Material discrepancies trigger desk audits.
• Industry-based audits: Certain industries (used car dealers, restaurants, contractors, online retailers) get rotation-audited every 4-6 years regardless of red flags.
• Refund claims: Filing for a sales tax refund commonly triggers a corresponding audit of the surrounding periods.
• Unusual exemption certificate ratios: If your exempt sales suddenly jump from 10% to 40%, the Comptroller may request the underlying exemption certificates.
• Whistleblower or complaint reports: Disgruntled employees and competitors can trigger audits.

If audited, you have 20 days to respond to the initial request and provide records. The auditor will sample transactions, verify exemption certificates, and reconcile to bank deposits. Audits typically take 60-90 days. Common findings: untaxed sales (especially services that were taxable but treated as non-taxable), unsupported exemption claims, and resale certificate accept-now-verify-later mistakes.

Best defense: keep clean records, request exemption certificates at the point of sale (not after), reconcile sales tax returns monthly against bank deposits, and consult a Texas sales tax CPA for any service-business questions. The cost of clean compliance is much less than penalties on a four-year audit.