Texas Sales Tax Calculator (2026 Rates)

Current Texas sales tax rates, city examples, economic nexus thresholds, exemptions, and FAQ.

State Rate

6.25%

Avg Combined

8.10%

Max Combined

8.25%

Nexus Threshold

$500K

Example: $100 purchase in Texas

Tax to collect (avg)

$8.10

Total from customer

$108.10

About Texas Sales Tax

Texas imposes a 6.25% state sales tax, with local jurisdictions (cities, counties, transit authorities, and special-purpose districts) adding up to 2% on top. This brings the maximum combined rate to 8.25%, which is the rate in most major cities including Houston, Dallas, Austin, and San Antonio. Texas is an origin-based state for in-state sales, meaning if your business is located in Texas, you collect sales tax based on your business location's rate. For out-of-state sellers shipping into Texas, the rate is based on the destination (customer's address). The economic nexus threshold in Texas is $500,000 in annual gross sales. Once exceeded, you must register with the Texas Comptroller and begin collecting. Texas has no state income tax, making it attractive for businesses, but the sales tax burden is significant — especially on large purchases like vehicles, where the 6.25% state rate alone on a $40,000 car means $2,500 in tax. Texas also holds an annual sales tax holiday (typically the first weekend in August) on clothing, footwear, school supplies, and backpacks priced under $100.

Texas Sales Tax by City

City	Combined Rate
Houston	8.25%
Dallas	8.25%
Austin	8.25%
San Antonio	8.25%
Fort Worth	8.25%

Rates shown are combined state + local rates for representative cities. Actual rates may vary by specific address, district, or zone. Verify with the Texas Department of Revenue.

Texas Sales Tax Facts

Tax Structure

State rate: 6.25%
Average local rate: 1.85%
Maximum local rate: 2.00%
Avg combined rate: 8.10%
Sourcing method: Origin + local

Economic Nexus

Threshold: $500K
Includes transactions: No

Once you exceed this threshold in annual sales into Texas, you must register and collect sales tax.

Texas Sales Tax Exemptions

Groceries (food for home consumption)
Prescription and over-the-counter drugs
Child car seats and diapers
Most agricultural items
Manufacturing equipment (Freeport exemption)

Texas Sales Tax FAQ

What is the Texas sales tax rate in 2026?

Texas has a 6.25% state sales tax rate. Local jurisdictions can add up to 2%, bringing the maximum combined rate to 8.25%. Most major cities — Houston, Dallas, Austin, San Antonio — charge the full 8.25%. The average combined rate across Texas is 8.25%.

What is the economic nexus threshold for Texas?

Texas's economic nexus threshold is $500,000 in gross annual sales into the state. There is no separate transaction count. Once you exceed $500K, you must register with the Texas Comptroller and begin collecting. Texas does not have a state income tax, but sales tax compliance is strictly enforced.

Does Texas have a sales tax holiday?

Yes. Texas holds an annual sales tax holiday, typically the first Friday through Sunday of August. During this weekend, clothing, footwear, school supplies, and backpacks priced under $100 are exempt from sales tax. This saves shoppers the full 8.25% combined rate in most cities.

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Data Sources & Disclaimer

Sales tax rates are based on data from the Sales Tax Institute and Avalara, effective for 2026 (updated annually). State and local sales tax rates are approximate averages. Actual rates vary by city, county, and district. Economic nexus thresholds are simplified. Always verify with the Texas Department of Revenue or a tax professional.

What Is the Sales Tax Calculator?

The Sales Tax Calculator is a free, browser-based tool that shows current state and local sales tax rates for all 50 US states plus Washington DC. It displays the statewide base rate, average combined rate (state + local), maximum local rate, and economic nexus thresholds — the data you need to know whether you must collect sales tax in a given state. No signup, no data upload: every lookup happens in your browser.

Who Should Use This Tool?

This tool is built for e-commerce sellers, dropshippers, resellers, small business owners, marketplace sellers (Amazon, eBay, Etsy), and anyone who sells products across state lines. If you sell to customers in multiple states, you need to know each state's sales tax rate and whether you have economic nexus there.

How Does This Tool Work?

Select a state from the dropdown or click any state in the 50-state grid. The tool instantly shows: (1) Statewide base sales tax rate. (2) Average combined rate (state + average local taxes). (3) Maximum possible local rate (worst case). (4) Economic nexus threshold — the sales volume or transaction count that triggers a tax collection obligation in that state. Enter a sale amount to calculate the exact tax to collect.

How Does Sales Tax Work When Selling to California?

An online seller ships a $100 order to Los Angeles, California: • California state rate: 7.25% (highest base rate in the US) • LA combined rate: ~9.5% (state + district taxes) • Tax to collect: $100 × 9.5% = $9.50 • Total from customer: $109.50 • Economic nexus threshold: $500,000 in annual CA sales Compare: the same $100 order to Delaware, Oregon, or Montana would have $0 sales tax — those states have no sales tax.

Frequently Asked Questions

Which states have no sales tax?

Five states have no statewide sales tax: Delaware, Montana, New Hampshire, Oregon, and Alaska (Alaska has no state sales tax but allows local municipalities to levy their own, averaging 1.81%). If you sell exclusively to these states, you do not need to collect sales tax.

What is economic nexus?

Economic nexus is a legal threshold that requires a business to register for and collect sales tax in a state, even without a physical presence there. After the 2018 Supreme Court ruling in South Dakota v. Wayfair, most states set the threshold at $100,000 in annual sales or 200 transactions. Some states (CA, NY, TX) use a $500,000 threshold. Check each state's threshold in this tool.

What is the difference between state and local sales tax?

State sales tax is a base rate set by the state government. Local sales tax is an additional rate levied by counties, cities, and special districts on top of the state rate. The combined rate (state + local) is what customers actually pay. For example, Colorado's state rate is only 2.9%, but local taxes push the average combined rate to 7.65%.

How often do sales tax rates change?

State sales tax rates change infrequently, but local rates can change quarterly as new districts are created or existing rates are adjusted. We update our data annually. For the most current local rates, always verify with your state Department of Revenue or use a tax compliance service like Avalara or TaxJar.

Do marketplace facilitators handle sales tax?

In most states, marketplace facilitators (Amazon, eBay, Etsy, Walmart Marketplace) are responsible for collecting and remitting sales tax on behalf of third-party sellers. However, if you also sell through your own website or other channels, you may still need to register and collect in states where you meet the economic nexus threshold.

What is origin-based vs destination-based sales tax?

In origin-based states (like Illinois, Texas, Utah), you collect sales tax at the rate of your business location. In destination-based states (like Washington, California, New York), you collect at the rate of the customer's shipping address. Most states are origin-based, but the trend is moving toward destination-based.