Texas sales tax rates 2026: Calculator, nexus, and due dates

Texas sales tax rates by city and county

Texas sales tax rates combine a 6.25% state sales tax rate with local sales tax rates imposed by cities, counties, transit authorities, and special districts. Local taxes can add up to 2.00%, but the total combined rate cannot exceed 8.25%.

Because Texas uses destination-based sourcing for remote sellers, you generally charge the rate based on where your customer receives the product. Remote sellers may also elect to use the Single Local Use Tax Rate, which allows them to apply one consistent local rate across the state instead of calculating individual local rates.

A sale shipped to Houston requires 8.25%, while a sale shipped to Austin also requires 8.25%. Texas centralizes filings through the Texas Comptroller of Public Accounts, so you file one return regardless of how many jurisdictions you sell into.

Major Texas cities and their 2026 combined rates:

Texas sales tax calculator

Can’t find your city? Use our Texas sales tax calculator to look up the exact sales tax rate for any Texas address.

TaxCloud’s sales tax calculation engine calculates to the rooftop level — because rates can vary within the same ZIP code, and zip-level estimates aren’t accurate enough for compliance.

Texas nexus thresholds

Every business with customers in Texas is subject to nexus laws. You are required to register and collect sales tax if you trigger “nexus” through a physical presence in the state or by exceeding specific economic thresholds as a remote seller.

Texas economic nexus

You will trigger Texas economic nexus if you exceed the following thresholds in the previous 12-month period:

• Sales threshold: $500,000 in total gross sales (including marketplace sales).
• Transaction threshold: None.

Texas physical nexus

You will trigger Texas physical nexus (and must register from dollar one) if you have:

• Physical location: An office, store, warehouse, or place of business in Texas
• Personnel in Texas: Employees, contractors, or representatives operating in the state
• Inventory in Texas: Goods stored within the state, including third-party fulfillment centers
• Distribution presence: Distribution facilities or storage locations used for business operations

Texas sales tax permit registration

Once you trigger nexus, you must register with the Texas Comptroller of Public Accounts before you can legally collect sales tax.

Operating without a permit after crossing the threshold exposes you to back taxes, penalties, and interest from the date nexus was established — not the date you registered.

1. Gather info: You’ll need your FEIN, estimated sales, business structure details, and bank account information.
2. Submit: Use the Texas Comptroller of Public Accounts eSystems portal to apply for your Seller’s Permit.
3. Note your effective date: Texas requires you to begin collecting sales tax on the date nexus was triggered — not the date you registered. If there’s a gap, you may owe back taxes for that period.

If you have questions about your Texas registration or compliance history, TaxCloud’s U.S.-based support team typically responds within 2 hours and can review your setup directly.

Texas sales tax calculation rules

Texas sales tax calculation depends on both state and local taxes, with a combined rate capped at 8.25%. Remote sellers generally collect tax based on the customer’s delivery location, but Texas also allows the use of a statewide Single Local Use Tax Rate as an alternative. The Texas Comptroller administers state and local tax reporting on a single return, which simplifies compliance across jurisdictions.

What is taxable in Texas?

Taxability in Texas is determined by how a product is classified under state law, which affects whether certain goods are treated as taxable items. Below is a high-level summary of how major categories are generally treated for 2026:

• Tangible personal property: Most physical goods are taxable unless a specific exemption applies.
• SaaS, software, and digital products: Texas generally taxes digital goods (eBooks, music) and Software as a Service (SaaS).
• Food & groceries: Texas typically exempts grocery staples. However, prepared or heated food sold for immediate consumption is generally taxable.
• Clothing: Clothing and footwear are generally taxable at standard rates, with exceptions for items under $100 during sales tax holidays.

What is tax exempt in Texas?

Below is a high-level summary of items that are generally tax-exempt in Texas:

• Essential exemptions: Texas provides specific exemptions for items such as prescription medicine and most grocery staples.

Texas sales tax return due dates and filing frequency

Filing frequency is assigned by the Texas Comptroller of Public Accounts based on your reported or estimated sales volume. In Texas, returns are generally due on the 20th of the month following the reporting period.

Critical 2026 compliance notes:

• Collection start timing: Remote sellers must begin collecting tax on the first day of the second month following the month in which the $500,000 threshold is met.
• Single Local Use Tax Rate option: Remote sellers may elect to use a statewide local use tax rate instead of calculating individual local rates. This election applies consistently to all Texas sales.
• Zero-return requirement: If you are registered but had no taxable sales during the reporting period, you must still file a return to avoid penalties.
• Combined rate cap: Texas sales tax rates cannot exceed 8.25%, even when multiple local jurisdictions apply.

Texas and the SST program

No, Texas is not a member of the Streamlined Sales Tax (SST) program.

However, because TaxCloud is a Certified Service Provider of the SST Program, we can save your business time and money on state registration and filing costs in 24 SST-member states — and handle your Texas filing.

Calculate your potential tax filing savings through the SST program here.

The latest Texas sales tax changes

We track Texas’s shifting sales tax landscape so you don’t have to.

Here are latest updates:

• Texas will tax marketplace seller fees from Oct 1, 2025: Starting October 1, 2025, Texas will require marketplaces to charge sales tax on the commission fees they take from sellers. For sellers, that means higher effective costs. For CPAs, controllers, and finance teams, it means adjusting forecasts, reconciling new fee structures, and preparing clients for tighter margins in Texas.
• San Antonio updates local sales and use taxes for 2026: Texas has announced local sales and use tax changes effective January 1, 2026, including updates in San Antonio and new combined taxing areas. Destination-based sourcing means sellers must apply the updated rates based on the delivery address.