Texas Sales Tax

Texas Sales Tax Guide (2026)

6.25% statewide, capped at 8.25% once local tax is added, with origin-based sourcing that makes Texas behave differently from most states for in-state sellers.[1]

5 min read • Reviewed by Tax Advisory Team • Verified • Sources: TX Comptroller & Tax Code
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Quick Facts

Sales Tax at a Glance

State base rate
6.25% [1]
Local rate cap
Up to 2% [2]
Combined rate range
6.25%–8.25% [1]
Major metro rate
San Antonio, 8.25% [3]
Sourcing rule
Origin (in-state sellers) [4]
Economic nexus
$500k / 12 months [5]
Physical nexus
Any TX presence [6]
Business-level tax
Franchise (margin) tax [7]
Latest rule change
Rule 3.330, 4/2/25 [8]
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The data processing rule was rewritten, effective April 2, 2025

The Comptroller substantially amended Rule 3.330, widening what counts as a taxable data processing service.[8] Cloud and marketplace businesses selling into Texas should re-check their treatment:

Cloud & internet hosting Data stored on provider hardware Payroll services Website data storage Marketplace seller data services Certain payment processing now excluded
The 80/20 rule still applies: data processing and information services are taxable, but the Tax Code exempts 20% of the charge, so tax is collected on 80% of the price.[9] SaaS falls in this bucket, which is why Texas is often described as taxing software at an effective 5% state rate.
Estimate

Texas sales tax calculator

Texas · base rate 6.25%
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Estimate only. Confirm your address rate with the Comptroller’s rate lookup[2] before filing, or let CrownGlobe handle it.

Rates & Registration

Texas Sales Tax Rates, Nexus & the franchise tax

Rate components

State base rate6.25%
Local rate capUp to 2%
Combined range6.25%–8.25%
Economic nexus$500k / 12 mo

Local rates change quarterly, and the 2% cap applies to all overlapping local jurisdictions combined, not to each one separately.[2]

Who must register

Either trigger applies: economic nexus ($500,000 of Texas revenue in the preceding 12 calendar months, on a rolling basis, with no transaction-count test), or being engaged in business in Texas through an office, employees, contractors, inventory or a delivery vehicle.[5]

Origin sourcing is the Texas quirk: a seller with a Texas place of business charges its own local rate, while a remote seller sources to the customer’s address or elects the flat 1.75% single local use tax rate instead.[4]

Compliance

Sales Tax Registration and Filing

One sales and use tax permit covers state and local collection.

How to register

  • Confirm nexus→
  • Comptroller eSystems→
  • Get permit→
  • Frequency assigned→
  • File via Webfile

The permit is free, though a security bond may be required; allow roughly two to three weeks.[10]

Filing & due dates

FrequencyState tax liabilityDue
Monthly$1,500+ per quarter20th of next month
QuarterlyUnder $1,500 per quarter20th after quarter
AnnualUnder $1,000 per yearJan 20

Filing on time earns a 0.5% discount, with a further 1.25% available for prepayment.[11] Late payment costs 5% within 30 days and 10% after, plus a flat $50 per late return.[12]

Pricing

Sales Tax & Nexus Pricing

Multi Tax Filing – $50 Per State/Month

ServiceWhat’s Included
Multi-state registrationNexus tracking, permit setup, and state agency coordination.
Monthly filingSales tax returns filed in every registered state.
Exemption & audit supportCertificate handling and notice response.
Get Started with Multi-State Filing
Taxability

Taxable vs. exempt

Texas taxes tangible goods plus a defined statutory list of services, so taxability turns on whether a service appears on that list.[13]

Generally taxable

  • Tangible retail goodsTax Code 151.051
  • Data processing & SaaS (80% of charge)Tax Code 151.351
  • Prewritten software, any delivery methodTax Code 151.009
  • Cable, satellite & streaming videoTax Code 151.0101
  • Shipping billed with a taxable saleRule 3.303
  • Debt collection servicesRule 3.354

Generally exempt

  • Grocery food for home consumptionTax Code 151.314
  • Prescription & most OTC drugsTax Code 151.313
  • Custom programming servicesRule 3.308
  • Separately stated internet accessTax Code 151.325
  • Sales for resale on Form 01-339Tax Code 151.302
  • Qualifying nonprofit purchasesTax Code 151.310
Worth flagging: shipping is taxable in Texas whenever the underlying item is taxable, even when it is itemised separately on the invoice. That catches out sellers moving from states where separate statement makes freight exempt.[14]
Reference

Glossary of key terms

Nexus
The connection to a state substantial enough to require tax registration.
Origin sourcing
Local tax follows the seller’s place of business rather than the buyer’s address.
Single local use tax rate
A flat 1.75% local rate a remote seller may elect instead of tracking each destination.
Franchise tax
A separate entity-level margin tax on Texas businesses, unrelated to sales tax.
Data processing service
A taxable service category that captures most SaaS, with 20% of the charge exempt.
Resale certificate
Form 01-339, letting a registered buyer purchase stock for resale tax-free.
FAQ

Sales Tax FAQs

6.25% statewide. Local jurisdictions may add up to 2% more, so the combined rate never exceeds 8.25%, and most cities are already at that cap.

Both, depending on the seller. A seller with a Texas place of business sources local tax to that location. A remote seller sources to the customer’s address, or may elect a flat 1.75% single local use tax rate.

$500,000 of Texas revenue in the preceding 12 calendar months, measured on a rolling basis. Texas has no separate transaction-count test.

Yes. Texas treats SaaS as a data processing service, but the Tax Code exempts 20% of the charge, so tax applies to 80% of the price.

Yes, when the item being shipped is taxable. Separately stating the freight charge on the invoice does not make it exempt.

The Comptroller assigns frequency by liability: monthly at $1,500 or more per quarter, quarterly below that, and annually under $1,000 of state tax for the year.

Verification

Sources & methodology

  1. TX Comptroller – Sales and Use Tax
  2. TX Comptroller – Local Tax FAQs
  3. TX Comptroller – Jan 2026 Rate Changes
  4. TX Comptroller – Pub. 94-105, Local Tax Guide
  5. TX Comptroller – Remote Sellers FAQ
  6. TX Comptroller – Engaged in Business
  7. TX Comptroller – Franchise Tax
  8. TX Comptroller – Tax Policy News, Apr 2025
  9. TX Comptroller – Pub. 94-127, Data Processing
  10. TX Comptroller – Apply for a Permit
  11. TX Comptroller – Reporting and Paying
  12. TX Comptroller – Penalties
  13. TX Comptroller – Pub. 96-259, Taxable Services
  14. TX Comptroller – Collection FAQs
Methodology: Every figure is checked against the Texas Comptroller or the Texas Tax Code directly, never copied from a third-party guide. Texas local rates change quarterly, so this page is reviewed each quarter.
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