Local Sales and Use Tax
Frequently Asked Questions
- What tax rate do I use?
- If I do not collect the sales tax or collect an incorrect amount, who is responsible for paying sales tax to the Comptroller's office?
- 1. What tax rate do I use?
The Texas state sales and use tax rate is 6.25%, but local taxing jurisdictions (cities, counties, special purpose districts, and transit authorities) may also impose sales and use tax up to 2% for a total maximum combined rate of 8.25%. You will be required to collect both state and local sales an use tax. For information about the tax rate for a specific area, see Local Sales and Use Tax Rate Information.
For information on collecting and reporting local sales and use tax, see publication 94-105 "Guidelines for Collecting Local Sales and Use Tax." For a list of local tax rates see publication 96-132 "Texas Sales and Use Tax Rates." We also provide tax rate cards for all combined tax rates.
The tax rate for sales and use taxes are the same. See Purchases/Use Tax for additional information.
- 2. If I do not collect the sales tax or collect an incorrect amount, who is responsible for paying 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 collect and remit the correct amount, you can owe any additional tax plus you may be assessed penalties and interest.