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
14.50%
Max Combined
8.25%
Nexus Threshold
$500K
Example: $100 purchase in Texas
Tax to collect (avg)
$14.50
Total from customer
$114.50
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
- 8.25%
- Maximum local rate
- 2.00%
- Avg combined rate
- 14.50%
- 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.