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Texas is an origin-based state (sales are taxed where the seller is located).
Businesses with less than $100,000 in taxes due can file using one of these methods:
Texas imposes a 6.25% state sales tax. In addition, local taxing jurisdictions (cities, counties, special purpose districts and transit authorities) can also impose up to 2% tax for a maximum combined rate of 8.25%.
For a fast and accurate sales tax rate lookup by zip code, use our up-to-date calculator below.
Look up your Texas sales tax rate:
Prepared food sold in restaurants is taxable at the full rate. Bakery items sold without plates or utensils are not taxable. Grocery-type food items sold for home consumption are generally not taxable.
Businesses activities that establish a minimum tax connection to the state include:
Want more information? Check out the Texas Administrative Code.
Returns are generally due on the 20th of the month following the reporting period. Most businesses will be required to file monthly.
Apply for a tax permit using the state’s Online Tax Registration Application. You’ll receive your permit within 2-3 weeks, and are required to post it in your place of business.
Penalties for late payments are calculated as follows:
For most taxes, a taxpayer who fails to file returns on time will be assessed an additional penalty of $50.00 for each late return.
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