Texas has a 6.25% statewide sales tax, with cities, counties, transit authorities, and special purpose districts able to impose additional local taxes. The maximum combined sales tax rate is 8.25%.
If you sell taxable goods or services in Texas, you may be required to obtain a sales tax permit, collect the correct state and local taxes, and file returns with the Texas Comptroller.
Texas Sales Tax at a Glance (2026)
| Topic | Key Information |
| State sales tax | 6.25% |
| Maximum combined rate | 8.25% |
| Economic nexus | $500,000 in Texas revenue |
| Transaction threshold | None |
| Sales tax permit required | Yes, when applicable |
| Remote seller single local rate | 1.75% |
| Registration and filing | Texas Comptroller |
When Do You Have Sales Tax Nexus in Texas?
You generally have sales tax nexus if your business:
- Has a storefront, office, warehouse, employees, or other physical presence in Texas.
- Stores inventory or conducts qualifying business activities in Texas.
- Exceeds Texas’s $500,000 remote seller threshold.
Businesses with physical nexus generally must register regardless of whether they meet the economic threshold.
Economic Nexus
Texas provides a safe harbor for qualifying remote sellers whose total Texas revenue is less than $500,000 during the preceding 12 calendar months. The calculation includes gross revenue from taxable and nontaxable sales of tangible personal property and services into Texas. It can also include marketplace sales, resale transactions, and sales to exempt entities.
Remote sellers that exceed $500,000 generally must obtain a permit and begin collecting Texas tax no later than the first day of the fourth month after the month in which they exceed the threshold. Texas does not have a separate transaction-count threshold.
What Is Taxable in Texas?
Texas generally taxes sales of tangible personal property and certain specifically identified services. Taxable products commonly include:
- Clothing
- Electronics
- Furniture
- Appliances
- Household goods
- Prewritten software
- Certain digital products
Texas also taxes certain services, including some:
- Data processing services
- Telecommunications services
- Amusement services
- Repair and remodeling services
- Security services
Many professional services aren’t subject to sales tax unless specifically made taxable under Texas law.
Common exemptions include qualifying resale purchases, certain medical products, and other transactions specifically exempted by Texas law.
How to Register for a Texas Sales Tax Permit
Businesses required to collect Texas sales tax must obtain a Texas Sales and Use Tax Permit from the Texas Comptroller.
The basic process includes:
- Complete the Texas Online Tax Registration Application.
- Provide your EIN and business information.
- Obtain your Texas Sales and Use Tax Permit.
- Begin collecting sales tax when required.
Texas doesn’t charge a fee for the sales tax permit, although a security bond may be required in certain circumstances. Businesses should register before beginning to collect Texas sales tax.
Texas Sales Tax Rates
Texas has a 6.25% statewide sales and use tax rate. Local taxing jurisdictions can impose up to an additional 2%, producing a maximum combined rate of 8.25%.
Depending on the transaction, local taxes may include taxes imposed by cities, counties, transit authorities, and special purpose districts.
Because local tax sourcing can become complicated, businesses should use the Texas Comptroller’s Sales Tax Rate Locator when determining the correct rate.
Single Local Use Tax Rate for Remote Sellers
Texas offers remote sellers a useful alternative for handling local sales taxes.
Instead of calculating the individual local rate applicable to every Texas delivery address, qualifying remote sellers can elect to collect a single local use tax rate.
For 2026, that rate is 1.75%.
Combined with the 6.25% state rate, an electing remote seller would generally collect 8%.
Remote sellers must formally elect to use the single local rate. Texas-based businesses and marketplace providers cannot use this option.
Marketplace Facilitator Rules
Marketplace facilitators such as Amazon, Etsy, eBay and Walmart Marketplace generally collect and remit Texas sales tax on marketplace sales. If you also sell through your own website or directly to customers, you’re responsible for collecting tax on those sales if you have nexus.
Texas-based marketplace sellers generally still need a Texas sales tax permit, even if all their sales are made through a marketplace.
Filing Requirements
Businesses with a Texas Sales and Use Tax Permit must file returns according to the schedule assigned by the Comptroller.
Your filing frequency is assigned when you register and is based on your expected sales tax liability and will either be:
- Monthly
- Quarterly
- Annually
Businesses that fail to file returns or remit Texas sales tax on time may face late filing penalties, interest on unpaid tax and collection actions.
Texas Sales Tax Holiday
Texas holds an annual sales tax holiday for qualifying back-to-school purchases.
Qualifying items generally include:
- Most clothing
- Footwear
- School supplies
- Backpacks
Eligible items must generally be sold for less than $100 each. Qualifying online and catalog purchases can also receive the exemption.
Businesses selling eligible products should review the Comptroller’s guidance each year before the holiday.
Texas Sales Tax Compliance Checklist
- Determine whether you have physical or economic nexus.
- Monitor the $500,000 remote seller threshold.
- Obtain a Texas Sales and Use Tax Permit when required.
- Determine which products and services are taxable.
- Collect the correct state and local rates.
- Consider the single local use tax rate if eligible.
- File all required returns on time.
FAQs
What is the sales tax rate in Texas?
Texas has a 6.25% state rate, with a maximum combined rate of 8.25%.
What is Texas’s economic nexus threshold?
Remote sellers generally must collect tax once Texas revenue exceeds $500,000 during the preceding 12 calendar months.
Does Texas have a transaction threshold?
No, Texas doesn’t use a separate transaction-count threshold.
What is Texas’s single local use tax rate?
Qualifying remote sellers can elect a 1.75% single local use tax rate for 2026.
Are services taxable in Texas?
Some are. Texas taxes specific services, including data processing, amusement, telecommunications, and certain repair services, while many other services are not taxable.
Final Thoughts
Texas has a relatively high $500,000 economic nexus threshold, but its local sales tax system can make compliance more complicated once a collection obligation exists. Businesses should pay particular attention to local tax sourcing, marketplace sales, and the optional single local use tax rate available to qualifying remote sellers. Registering when required, collecting the correct tax, and filing returns on time will help keep your business compliant.
Need help with Texas sales tax registration, filings, or compliance? Contact our tax professionals today.
