Texas combines a 6.25% state sales and use tax with local taxes that can bring the total to 8.25%. The rate is only one part of the decision. In-state sellers and remote sellers can follow different sourcing rules, and qualifying remote sellers may elect a single local use tax rate instead of calculating every destination’s local components.
Key takeaways
Texas imposes a 6.25% state rate and no more than 2% of combined local sales and use taxes.
A remote seller is generally within the safe harbor when total Texas revenue is less than $500,000 during the preceding 12 calendar months.
For 2026, an eligible remote seller may elect the 1.75% single local use tax rate instead of destination local rates after notifying the Comptroller.
Marketplace certification changes who collects tax, but Texas sellers and hybrid remote sellers can retain permit, filing, and direct-sales responsibilities.
State and local rates are calculated together
Texas applies a 6.25% state sales or use tax to taxable transactions. Cities, counties, transit authorities, and special purpose districts may add local tax, but the combined local amount cannot exceed 2%. The highest combined state and local rate is therefore 8.25%.
For a Texas place of business, local sales tax generally begins with where the sale is consummated, while local use tax may be due based on where the customer receives or first uses the item. Orders shipped from outside Texas or from a location that is not a Texas place of business commonly require destination analysis.
Use the Comptroller’s address-based rate locator for actual orders. A city name can contain overlapping local jurisdictions, and a postal code does not show which transit or special district applies.
- Store state and each local component separately.
- Identify the Texas place of business involved in the sale.
- Use delivery data when local use tax applies.
- Recheck quarterly rate and annexation updates.
The remote-seller safe harbor and start date
Texas provides a safe harbor for remote sellers with total Texas revenue below $500,000 during the preceding 12 calendar months. The measure is broad: it includes taxable and nontaxable sales of tangible personal property and services into Texas, separately stated handling, transportation and installation charges, resale sales, and sales to exempt entities.
Marketplace sales also enter the safe-harbor calculation even when the marketplace provider collects and remits tax. A seller with $300,000 of direct Texas revenue and $300,000 of marketplace revenue is not below the safe harbor merely because the platform handled half of the tax.
Once the seller exceeds the safe harbor, Texas requires collection to begin under the state’s timing rule. Monitor the rolling 12-month population each month and keep the exact crossing period, registration date, chosen local-rate method, and first collected order in the control file.
- Use gross Texas revenue rather than taxable sales alone.
- Include direct and marketplace channels.
- Run a rolling 12-calendar-month test.
- Review inventory, employees, and other physical presence separately.
Actual local rates or the single local use tax rate
A qualifying remote seller can collect local use tax using the rate at the ship-to destination. Texas also permits an election to use a single local use tax rate. The published single rate for 2026 is 1.75%, producing an 8% combined rate when added to the 6.25% state rate.
The single rate is not an automatic shortcut. The remote seller must notify the Comptroller using the required election process, and the effective date follows reporting-period rules. Texas businesses and marketplace providers cannot use the remote-seller single local use tax rate for their sales.
Document the election and do not switch methods order by order. If the business revokes the election, preserve the effective date and update checkout, returns, customer support, and reconciliation procedures together.
- Choose one approved method for covered remote sales.
- Retain Form 01-799 and acceptance evidence.
- Do not offer the single rate to in-state sellers or marketplace providers.
- Test the first reporting period after an election change.
Permits and marketplace responsibility
A person engaged in business in Texas and selling taxable goods or services generally needs a Texas sales and use tax permit. Texas taxes many tangible goods and specifically identified services, including certain amusement, cable television, data processing, and telecommunications services. Product and service mappings should be based on the Comptroller’s definitions rather than a national tax code.
A marketplace provider must certify that it will collect and remit Texas sales and use tax on covered marketplace sales. A remote seller selling only through a certified marketplace may not need a Texas sales tax permit, though it must retain marketplace records. A seller located in Texas generally still needs a permit and must file even when all sales occur through a collecting marketplace.
Hybrid sellers report and remit their direct taxable sales while keeping marketplace activity separate. The return presentation can include marketplace sales in total Texas sales and exclude certified facilitator sales from taxable sales, following the Comptroller’s instructions.
- Keep marketplace certifications for at least the required record period.
- Separate seller-collected and facilitator-collected tax.
- Review direct website, invoice, and wholesale sales.
- Do not use net marketplace payouts as gross sales.
Returns, zero periods, and reconciliation
After a permit is approved, the Comptroller assigns monthly or quarterly filing. Monthly and quarterly returns are generally due on the 20th day after the reporting period, adjusted when the date falls on a weekend or legal holiday. A required return must be filed even when there are no taxable sales or purchases to report.
Close the period by reconciling total Texas sales, direct taxable sales, deductions, exempt and resale transactions, marketplace sales, state tax, each local component, refunds, and payments. Review whether the single-rate election or actual destination rates were applied consistently.
Texas sales tax registration can also have consequences outside the sales tax return, including possible franchise tax responsibilities for taxable entities. Keep that analysis separate rather than assuming a sales tax permit settles every Texas tax obligation.
- Follow the assigned frequency until officially changed.
- File zero returns when required.
- Tie local tax schedules to transaction addresses.
- Retain Webfile confirmation and payment evidence.
Frequently asked questions
What is the Texas sales tax rate in 2026?
Texas imposes a 6.25% state rate. Combined local sales and use taxes may add up to 2%, so the maximum combined rate is 8.25%.
What is the Texas economic nexus threshold for remote sellers?
Texas uses a safe harbor based on total Texas revenue. A remote seller with less than $500,000 during the preceding 12 calendar months generally is not required to obtain a permit and collect use tax solely under the remote-seller rule.
What is the Texas single local use tax rate for 2026?
The published 2026 single local use tax rate is 1.75%. Eligible remote sellers must elect it through the Comptroller’s process; it does not apply automatically.
Do marketplace sales count toward the Texas safe harbor?
Yes. Marketplace sales are included in total Texas revenue for the remote-seller safe-harbor test even when the marketplace provider collects the tax.
Must a Texas sales tax return be filed when no tax is due?
Yes, if the account has an assigned filing obligation. Texas requires the return even when there are no taxable sales or purchases for the period.
Official sources
Reviewed against the following primary sources on Aug 23, 2026.