Local Sales and Use Tax Frequently Asked Questions

What tax rate do I use?

The Texas state sales and use tax rate is 6.25 percent, but local taxing jurisdictions (cities, counties, special-purpose districts and transit authorities) also may impose sales and use tax up to 2 percent for a total maximum combined rate of 8.25 percent. You will be required to collect both state and local sales and use taxes. For information about the tax rate for a specific area, see Local Sales and Use Tax Rates on our sales and use tax web page.

For information on collecting and reporting local sales and use tax, see 94-105, Local Sales and Use Tax Collection – A Guide for Sellers (PDF)  For a list of local tax rates, see Texas Sales and Use Tax Rates.  We also provide tax rate cards for all combined tax rates.

Sales and use taxes are collected at the same rate. See Purchases/Use Tax for additional information.

If I do not collect the sales tax or collect an incorrect amount, who is responsible for paying the correct sales tax to the Comptroller’s office?

As a seller, you are responsible for collecting and remitting the correct amount to the Comptroller’s office. If you do not, you can owe any additional tax and may be assessed additional penalties and interest.