Texas Sales Tax Rates by City: State Plus Local Breakdown

Texas sales tax by city starts with a 6.25% state rate. Applicable local jurisdictions may add up to 2%, making 8.25% the highest possible combined rate. The local portion can include more than a city tax, so a city name by itself may not identify the rate for a particular sale. Sellers should verify the exact address and apply the sourcing rules that fit the transaction.

The Texas Comptroller’s city table is useful for comparing listed locations, while its address-level Sales Tax Rate Locator is the better tool for confirming a specific business or customer address. For a broader comparison, see the Texas State, County, City, & Municipal Tax Rate Table.

How the Texas state and local rates fit together

The combined Texas sales tax rate has two basic layers:

• State tax: 6.25% on taxable Texas retail sales, leases, rentals and taxable services.
• Local tax: Up to 2% from applicable local jurisdictions.

That produces a maximum combined rate of 8.25%. However, not every location necessarily reaches that maximum. The applicable total depends on which local components cover the relevant location and how Texas sources the transaction.

The Comptroller’s City Sales and Use Tax table lists a city local code, city local rate, applicable local-jurisdiction components and total rate for each listed location. Rates can vary by location and, in some cases, by county. Consequently, two addresses associated with the same general city area should not automatically be treated as having identical local components.

The downloadable rate-file page identifies July 1, 2026, as the effective date of the most recent listed sales-tax-rate file. Businesses maintaining accounting, invoicing or point-of-sale systems should use current location data rather than relying indefinitely on a rate saved during an earlier setup.

City-rate examples and address-level verification

The city table lists total rates of 8.25% for Austin, Dallas, Fort Worth, Houston and San Antonio. Those examples do not mean that each city has the same local-tax composition. Their listed city rates and other local components differ, and jurisdictional components may vary for an exact address.

These are city-table examples, not substitutes for an address lookup. County, transit, special-purpose-district and combined-area boundaries can affect which local components apply. The Comptroller directs sellers to use its Sales Tax Rate Locator to determine the rate by address.

For example, after an address lookup confirms an 8.25% total rate, a $100 taxable amount produces $8.25 in tax. The calculation is $100 multiplied by 0.0825. If the verified total for another address is lower, the seller should use that confirmed lower rate instead of defaulting to 8.25%.

Who needs a permit before collecting Texas tax

A Texas sales and use tax permit is required for individuals, partnerships, corporations and other legal entities engaged in business in Texas that sell or lease tangible personal property or sell taxable services. An out-of-state business also requires a permit when its Texas revenue reaches $500,000 or more during the preceding 12 months.

Sellers responsible for collecting Texas sales or use tax must collect the 6.25% state tax and the appropriate local tax on taxable goods or services sold in Texas or to Texas customers. Registration and rate selection are therefore connected but separate tasks: the permit establishes the seller’s registration, while the transaction’s location and sourcing determine the appropriate local amount.

Before beginning an application or configuring a tax system, organize the business’s legal identity, operating addresses, sales locations, description of what it sells or leases, and information needed to evaluate its Texas activity. An out-of-state business should also have its Texas revenue records available to assess the preceding-12-month threshold. This preparation helps distinguish registration questions from address-specific rate questions.

There is no Texas sales tax permit fee, although the Comptroller may require a security bond. Applicants can review the Texas Sales Tax Registration Guide for New Businesses for additional registration context.

Procedure for registration and city-rate setup

1. Determine whether the business needs a permit. Review whether the entity is engaged in business in Texas and sells or leases tangible personal property or sells taxable services. For an out-of-state business, evaluate whether Texas revenue has reached $500,000 or more during the preceding 12 months.
2. Choose a supported registration method. An applicant may use the Texas Online Sales Tax Registration Application System or mail Form AP-201, Texas Application for Sales and Use Tax Permit, to the Comptroller. Businesses planning to register electronically can consult the Texas Sales and Use Tax Permit: How to Apply Through eSystems.
3. Identify the relevant transaction location. Do not select a rate solely because a customer or business uses a familiar city name. Start with the complete address connected to the transaction.
4. Apply the appropriate sourcing principle. In general, local sales tax is based on the seller’s place of business. Local use tax is generally based on where the customer first stores, uses or consumes the item. Exceptions and more detailed sourcing rules can apply, so a destination address should not automatically replace the seller’s place of business in every transaction.
5. Look up the address-specific rate. Use the Comptroller’s Sales Tax Rate Locator for the relevant address. Review the city table when comparing listed city rates or examining the local-jurisdiction components behind a total.
6. Configure the verified rate. Enter the confirmed state and local treatment into the invoicing, checkout or point-of-sale process. Preserve enough transaction detail to connect the applied rate with the location used for the determination.

Collection, reporting and ongoing rate review

After registration and rate setup, the seller must collect the 6.25% state amount and the appropriate local amount on taxable transactions for which it is responsible. State and local amounts are reported on the Texas Sales and Use Tax Return.

The most important operational distinction is between identifying a city and identifying the jurisdictions that apply to an address. A receipt showing an 8.25% total does not, by itself, establish that its local components match those of another 8.25% location. This matters when transaction records or return preparation require the state and local amounts to be reported correctly.

A practical review process should include checking addresses when a business adds a location, begins serving a new area or encounters an address whose jurisdiction is uncertain. Rate data used by billing systems should also be compared with current Comptroller information rather than treated as permanent. As of August 13, 2026, the most recent downloadable sales-tax-rate file is effective July 1, 2026.

When reviewing a transaction, work in this order: confirm that the product, lease, rental or service is taxable; identify whether the transaction calls for local sales-tax or use-tax sourcing; determine the relevant address; verify that address in the rate locator; and calculate tax using the confirmed combined rate. This approach avoids treating a well-known city’s listed total as a universal rate for every address or transaction associated with that city.