Texas local sales tax changes in 2026
The Texas Comptroller announced local sales and use tax updates effective January 1, 2026. The changes affect select city, transit district, and combined area jurisdictions, including locations impacted by annexations and district boundary updates.
Written by Ryan Pinkham
VP of GTM
Published
Key points
- Some Texas destinations will have new combined local rates starting January 1, 2026.
- Changes are driven by transit district updates, annexations, and newly defined combined areas.
- Sellers should verify rate logic before processing January 2026 transactions.
What’s changing
- The Comptroller notice reflects transit district changes, annexed areas, and updated combined areas, which can alter the total local rate for specific addresses even when a citywide rate does not change.
- Effective date: January 1, 2026.
Who this affects
- Sellers with physical locations in affected Texas jurisdictions
- Remote sellers collecting Texas local sales tax
- Ecommerce sellers shipping to Texas addresses
- Businesses operating in areas with overlapping local districts
- CPAs and accountants managing Texas sales tax compliance
Next steps for sellers
- Confirm your calculation logic applies the updated Texas city, transit district, and combined area rates starting January 1, 2026.
- Review destinations where overlapping districts can change the total rate at the address level.
- Ensure returns for January 2026 reporting periods reflect the updated local rates where applicable.
Official sources:
- 1.
Disclaimer
TaxCloud provides sales tax compliance solutions. We do not provide legal or tax advice. For questions about your specific tax situation or filing requirements, we recommend consulting a qualified sales tax accountant.
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