Texas sales tax calculator
Texas has one state rate and up to four local layers. Pick the city — we use the Comptroller's own rate file, not a national average.
State sales tax is 6.25%. Local units may add up to 2%, so the combined rate never exceeds 8.25%. Of the 2,998 areas in the current Comptroller file, 1,600 sit exactly at 8.25%.
How the Texas rate is built
Three statutes do all the work. Chapter 151 of the Texas Tax Code imposes the 6.25% state tax on retail sales, leases and rentals of taxable goods and on listed services. Chapters 321 to 323 let cities, counties and transit authorities adopt local sales taxes. Section 321.101 caps each local unit, and the combined local take at 2%, which produces the familiar 8.25% ceiling.
| Layer | Rate | Adopted by | Authority |
|---|---|---|---|
| State | 6.25% | Statewide | Tax Code ch. 151 |
| City | 0–2% | City voters | Tax Code ch. 321 |
| County | 0–0.5% | County voters | Tax Code ch. 323 |
| Transit (MTA) | 0–1% | Metropolitan transit authority | Tax Code ch. 322 |
| Special purpose district | 0–2% | District voters | Tax Code ch. 323, 324 |
The layers compete for one 2% bucket. When a city already takes the full 2%, a transit authority in the same area cannot add anything else — and a district that later wants a rate has to wait for another unit to give room. That is why two neighbouring cities can differ by a full point.
Common questions
What is the sales tax on $1,000 in Texas?
At the state rate, $62.50. In a city at the full local cap, $82.50. Use the calculator above to get the exact figure for your city rather than applying 8.25% everywhere — 1,398 of the 2,998 areas are below the cap.
Does Texas tax services?
Only the services specifically listed in Tax Code ch. 151 and the Comptroller's rules — for example debt collection, insurance-related services, telecommunications and certain repairs to tangible personal property. Most professional services, including legal and accounting work, are not taxable.
What about online sellers outside Texas?
Remote sellers with total Texas revenue above $500,000 in the preceding twelve calendar months must register and collect, under the Comptroller's remote seller rule. Below that threshold the obligation is on the buyer as use tax.
Sources
- Texas Comptroller — Sales and Use Tax
- Texas Comptroller — City Sales and Use Tax Rates (XLSX) — the dataset behind this calculator
- Tex. Tax Code Chapter 151 — Limited Sales, Excise and Use Tax