Texas Sales and Use Tax

Navigating the ins and outs of sales and use tax is crucial to business operations and consumer transactions in Texas. Texas imposes a state sale and use tax rate of 6.25 percent on a wide array of retail sales, leases, rentals of most goods, and taxable services.

Local taxing jurisdictions, encompassing cities, counties, special purpose districts, and transit authorities, have the power to levy additional sales and use taxes. In specific regions, consumers might pay up to an extra 2 percent on top of the state rate, culminating in a maximum combined rate of 8.25 percent.

Understanding these tax rates and how they apply to different goods and services is essential for businesses to remain compliant and for consumers to budget accordingly. Whether you’re a retailer navigating tax obligations or a consumer budgeting for purchases, knowing these rates can help ensure smooth financial transactions in the Lone Star State.

As always, staying informed and consulting with tax professionals can help businesses and consumers navigate the complex sales and use tax landscape in Texas.

About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts specializes in sales/use tax refund recovery and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis Davis & Harmon, LLC, we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.