Amarillo Sales Tax Guide 2025 (Texas)

Navigating sales tax and use tax compliance in Amarillo, Texas, can be challenging for businesses of all sizes. Understanding the local regulations, Texas sales tax rates, sales tax registration, and filing requirements is critical to staying compliant and avoiding penalties. At Kintsugi, we simplify sales tax compliance and integrations for businesses, helping you focus on growth and increase your revenue without the headache of managing complex tax rules. In this guide, we’ll break down everything you need to know about sales tax in Amarillo for 2025.

Amarillo Sales Tax Rate(Texas)

As of January 1, 2025, the sales tax rate in Amarillo, Texas, is 8.25%, combining the 6.25% state tax and a 2% city tax. In 1993, Amarillo voters approved a 0.5% sales tax increase to fund the Amarillo Economic Development Corporation, promoting local business growth.

Jurisdiction	Sales tax rate
State Tax	6.25%
County Tax	0.00%
City Tax	2.00%
Special Tax	2.00%
Combined Tax	8.25%

(Note: Sales tax rates are subject to change. Check the Texas Comptroller’s website for the latest updates.)

Amarillo Sales Tax Calculator

Imagine you own a sporting goods store in Amarillo, and a customer purchases a high-end mountain bike for $2,000. You need to calculate how much sales tax to charge and determine the total amount the customer must pay.

Step 1: Identify the Sales Tax Rate in Amarillo, TX

As of January 1, 2025, the sales tax rate in Amarillo, TX, is 8.25%. This consists of:

• Texas State Sales Tax: 6.25%
• City of Amarillo Sales Tax: 2.00% (which includes Amarillo’s portion for local improvements and economic development)

Step 2: Convert the Sales Tax Rate to Decimal Form

To use the tax rate in a calculation, convert 8.25% into decimal form by dividing by 100:

8.25% = 8.25 ÷ 100 = 0.0825

Step 3: Multiply by the Sale Price

Now, multiply the price of the mountain bike by the sales tax rate:

2,000 × 0.0825 = 165.00

So, the sales tax on the mountain bike is $165.00.

Step 4: Calculate the Total Amount Due from the Customer

To determine the final total, add the sales tax to the original price:

2,000 + 165.00 = 2,165.00

Final Breakdown:

• Mountain Bike Price: $2,000
• Sales Tax (8.25%): $165.00
• Total Amount Customer Pays: $2,165.00

What If a Customer Buys Multiple Items?

If a customer purchases multiple taxable items, follow the same steps. Let’s say they also buy a helmet ($100) and a set of bike lights ($50) in the same transaction.

1. Add Up All Taxable Items:

2,000 + 100 + 50 = 2,150

2. Multiply by the Sales Tax Rate:

2,150 × 0.0825 = 177.38

3. Add the Sales Tax to the Total:

2,150 + 177.38 = 2,327.38

So, the customer owes $2,327.38 for their entire purchase.

Why This Matters for Your Business

• Ensures compliance with Amarillo sales tax law and prevents legal penalties.
• Accurate tax collection prevents overcharging or undercharging customers.
• Sales tax must be remitted to the Texas Comptroller, so proper calculation ensures accurate reporting.
• Maintaining correct sales tax records simplifies bookkeeping and tax filing**.**

FAQ on Sales Tax in Amarillo TX

What is the Sales Tax in Amarillo Texas?

As of January 1, 2025, the total sales tax rate in Amarillo, Texas, is 8.25%. This rate is a combination of the Texas state sales tax of 6.25% and an additional 2% local tax imposed by the City of Amarillo. Use a sales tax rate lookup tool to verify current rates before each transaction.

Amarillo Sales Tax Filing Steps