Texas Sales Tax Overview
As of 2026, Texas has an average combined sales tax rate of 7.97%, with rates ranging from 6.25% to 8.25% depending on your specific location. The state's sales tax is managed by the Texas Comptroller of Public Accounts. Texas allows cities, counties, and special-purpose districts to add local taxes up to a 2% cap. With 2597 tracked jurisdictions, the actual rate you pay depends on a combination of state, county, and city-level taxes applied to your zip code.
The sales tax in Texas is composed of multiple layers. The state sets a base rate that applies uniformly across all jurisdictions. On top of this, individual counties and cities may add their own surcharges. This layered system means that the rate you pay can vary significantly even within the same state. For example, the lowest rate in Texas is 6.25% while the highest reaches 8.25% — a spread of 2%.
Texas Tax Examples (Average Rate)
* Based on average rate of 7.97%. Actual tax depends on your zip code.
Top Jurisdictions in Texas
Business Compliance in Texas
Businesses operating in Texas are required to register for a sales tax permit, collect the correct rate at the point of sale, and remit taxes on a regular filing schedule (monthly, quarterly, or annually depending on volume). Failure to collect and remit the correct amount can result in penalties, interest, and audit exposure from the state revenue department. If you sell online, be aware that economic nexus laws may also require collection in Texas if your sales exceed certain thresholds.
Frequently Asked Questions
What is the average sales tax rate in Texas?
The average combined sales tax rate in Texas is 7.97% as of 2026. This includes state, county, and local taxes.
What is the highest sales tax rate in Texas?
The highest combined sales tax rate in Texas is 8.25% in AUSTIN (73301).
What is the lowest sales tax rate in Texas?
The lowest combined sales tax rate in Texas is 6.25% in TEXHOMA (73960).
How many tax jurisdictions does Texas have?
Texas has 2597 tracked tax jurisdictions in our database. Each jurisdiction may have a different combined rate due to varying county and city taxes.
Does Texas charge sales tax on groceries?
Sales tax rules for groceries vary by state. In many states, unprepared food and grocery items are exempt or taxed at a reduced rate. Check with the Texas revenue department for specific exemption details, as rules can change annually.
How do I calculate sales tax in Texas?
To calculate sales tax in Texas, look up your specific zip code to find the exact combined rate. Multiply the purchase price by that rate. For example, at the average rate of 7.97%, a $100 purchase would incur $7.97 in tax.