2026 Texas sales tax update: cities, special districts, and new combined areas
Written by Ryan Pinkham
VP of GTM
Published
The Texas Comptroller has released its quarterly local sales tax update for April 1, 2026 — the second round of changes this year following the January 1, 2026 update. Several cities have adopted, increased, or abolished local sales tax rates, and a new round of special purpose districts have gone into effect. If you sell to Texas addresses, here’s every change you need to know.
Key takeaways
- Four cities are adopting or increasing local sales tax rates; two cities are abolishing additional sales tax components effective April 1, 2026
- Eight new special purpose districts — including emergency services and municipal development districts — are adding sales tax rates across Bexar, Hardin, Hill, Jefferson, Tyler, and Winkler counties
- Five new combined areas have been created to handle overlapping jurisdictions around Elgin and Venus, affecting sellers delivering to those addresses
What changed
Cities adopting a new sales tax (effective April 1, 2026)
| City | County | New Local Rate | New Total Rate | Purpose |
|---|---|---|---|---|
| Bloomington | Victoria Co. | 1.5% | 8.25% | City Sales Tax |
Cities increasing their additional sales tax (effective April 1, 2026)
| City | County | Additional Rate | New Total Rate | Purpose |
|---|---|---|---|---|
| Blanket | Brown Co. | 2.0% | 8.25% | Street Maintenance & Repair |
| Denver City | Gaines Co. | 2.0% | 8.25% | Industrial & Economic Development |
| Denver City | Yoakum Co. | 2.0% | 8.25% | Industrial & Economic Development |
| Dorchester | Grayson Co. | 2.0% | 8.25% | Industrial & Economic Development |
Cities abolishing an additional sales tax (effective April 1, 2026)
| City/District | County | Rate Removed | New Total Rate | Purpose |
|---|---|---|---|---|
| Bertram | Burnet Co. | removed | 8.0% | Street Maintenance & Repair |
| Bertram Municipal Development District | Burnet Co. | 0.25% removed | — | — |
| Palmer | Ellis Co. | removed | 8.25% | Industrial & Economic Development |
| Palmer Municipal Development District | Ellis Co. | 0.5% removed | — | — |
New special purpose districts (SPDs) (effective April 1, 2026)
| SPD Name | County | Local Rate | ZIP Codes Affected |
|---|---|---|---|
| Bexar County Emergency Services District No. 9 | Bexar | 1.5% | 78220, 78222, 78223, 78263 (partial) |
| Bexar County Emergency Services District No. 9-A | Bexar (China Grove overlap) | 0.25% | Contact district: 210-859-2410 |
| Hill County Emergency Services District No. 1 | Hill | 0.5% | Unincorporated Hill County |
| Jefferson County Emergency Services District No. 1 | Jefferson | 1.5% | 77713 (partial, excludes Bevil Oaks) |
| Jefferson County Emergency Services District No. 5 | Jefferson | 1.5% | 77622, 77629, 77665, 77705 (partial) |
| Kermit Municipal Development District | Winkler | 0.5% | Unincorporated ETJ of Kermit |
| Palmer Municipal Development District | Ellis | 0.5% | Palmer ETJ |
| Tyler County Emergency Services District No. 6 | Tyler | 1.5% | 77616, 77656, 77660, 77664 (partial) |
| Village Mills Emergency Services District No. 8 | Hardin | 2.0% | 77663 (partial) |
| Village Mills Emergency Services District No. 8-A | Tyler | 1.5% | 77663 (partial) |
New combined areas (effective April 1, 2026)
These combined areas were created to manage overlapping jurisdiction rates for addresses annexed by the cities of Elgin and Venus:
| Combined Area | Local Code | Local Rate |
|---|---|---|
| Elgin/Bastrop-Travis Emergency Services District No. 1 | 6227098 | 2.0% |
| Elgin/Bastrop-Travis Emergency Services District No. 1-A | 6011604 | 1.5% |
| Elgin/Travis County Emergency Services District No. 13 | 6227089 | 2.0% |
| Venus/Ellis County Emergency Services District No. 2 | 6070602 | 2.0% |
| Venus/Johnson County Emergency Services District No. 1-B | 6126633 | 2.0% |
Addendum: San Antonio/Medina County combined area (effective January 1, 2026)
This change was included as an addendum to the April quarterly update. The existing San Antonio/Medina County combined area (local code 6163600, rate 1.25%) was abolished and replaced with a new combined area (local code 6163637, rate 1.125%) effective January 1, 2026.
Who this affects
- Retailers with physical locations in any of the affected cities or districts — your point-of-sale tax rate must reflect the new combined local rate starting April 1, 2026
- Remote sellers and ecommerce businesses shipping to Texas addresses — Texas sources sales tax to the destination address; if you deliver to ZIP codes within any of the new or modified districts, your rate calculation must be updated
- Sellers delivering to Elgin or Venus addresses — newly created combined areas mean the applicable rate depends on whether the delivery address falls within the annexed territory; address-level verification is essential
- Businesses operating in or near Bexar County — the new Bexar County Emergency Services District No. 9 covers parts of unincorporated Bexar County near San Antonio, with two rate tiers depending on whether the address overlaps the city of China Grove
- CPAs and accountants managing Texas sales tax filings — multiple simultaneous changes across city, SPD, and combined area levels increase the risk of incorrect rate application without updated rate tables
Next steps for sellers
- Verify that your sales tax engine is applying the correct April 1, 2026 rates for all affected Texas jurisdictions — city-level changes, new SPD rates, and combined area updates all take effect on the same date
- For deliveries to Elgin, Venus, or unincorporated Bexar County addresses, confirm the correct combined area or SPD rate at the address level — ZIP code alone may not be sufficient given partial district boundaries
- If you have questions about district boundaries, contact the relevant district representative using the phone numbers listed above
- Review the San Antonio/Medina County combined area change separately — it was effective January 1, 2026 and is included as an addendum to this quarterly update
If you use TaxCloud
TaxCloud’s sales tax engine automatically updates Texas city, district, and combined area rates each quarter — including all April 1, 2026 changes — so your calculations reflect the correct rate at the address level without manual intervention.
Official sources:
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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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