| County | State Rate | County Rate | Combined Rate | Major City |
|---|---|---|---|---|
| Anderson County | 6.25% | 0.50% | 6.75% | Palestine |
| Bexar County | 6.25% | 0.50% | 6.75% | San Antonio |
| Brazoria County | 6.25% | 0.50% | 6.75% | Pearland |
| Cameron County | 6.25% | 1.00% | 7.25% | Brownsville |
| Collin County | 6.25% | 0.50% | 6.75% | Plano |
| Dallas County | 6.25% | 0.50% | 6.75% | Dallas |
| Denton County | 6.25% | 0.50% | 6.75% | Denton |
| El Paso County | 6.25% | 1.00% | 7.25% | El Paso |
| Fort Bend County | 6.25% | 0.50% | 6.75% | Sugar Land |
| Harris County | 6.25% | 0.50% | 6.75% | Houston |
| Hidalgo County | 6.25% | 1.00% | 7.25% | McAllen |
| Montgomery County | 6.25% | 0.50% | 6.75% | Conroe |
| Tarrant County | 6.25% | 0.50% | 6.75% | Fort Worth |
The Texas state sales tax rate is 6.25%. However, the total sales tax rate can range from 6.75% to 8.25% depending on the county and local taxes. Texas has a relatively low sales tax rate compared to other states, but it does not have a state income tax.
Texas sales tax applies to most tangible personal property and certain services. The state tax rate is the same throughout Texas, but local jurisdictions can impose additional taxes. The combined sales tax rate in Texas can vary significantly depending on the location.
It’s worth noting that certain items, such as groceries, clothing, and medicine, are exempt from sales tax in Texas. This exemption can help reduce the overall tax burden on consumers.
The Texas Comptroller’s office is responsible for collecting and administering sales tax in the state. Businesses with a physical presence or nexus in Texas must register for a sales tax permit and collect sales tax on taxable sales.
Texas has an economic nexus threshold of $500,000, which means that out-of-state businesses with annual sales exceeding this amount must also collect and remit sales tax. Businesses must file sales tax returns and pay any due tax on a quarterly or monthly basis, depending on their tax liability.