Texas imposes a 6.25% sales tax on goods sold.
Local taxing jurisdictions (cities, counties, special purpose districts and transit authorities) can also impose up to 2% sales tax for a maximum combined rate of 8.25%.
Rates vary throughout Texas, since some jurisdictions impose the full 2% sales tax, while others impose a lesser rate or none. The Comptroller of Public Accounts maintains a database of sales tax rates in different areas.
Online vendors, also known as remote sellers, may use an alternative uniform rate of 1.75% rather than calculating and remitting sales tax to each local jurisdiction to which they sell.
A tax at the same rate also applies to leases, rentals, and taxable services, which include telecommunications, entertainment, security services, laundry and cleaning services, etc. This is called a “use tax,” and for this reason sales tax is also called “sales and use tax.”
Motor vehicle sales within Texas are also taxed at 6.25% of the sales price, minus any trade-in allowance. Motor vehicle rentals are taxed at 6.25% or 10% of gross receipts, depending on the length of the rental contract.
