Killeen Sales Tax Guide 2025 (Texas)

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

Killeen Sales Tax Rate(Texas)

As of January 1, 2025, the sales tax rate in Killeen, Texas, is 8.25%, comprising a 6.25% state tax and a 2% local tax. In 2024, Killeen adopted comprehensive financial governance policies to enhance fiscal management and transparency.

Jurisdiction	Sales tax rate
State Tax	6.25%
County Tax	0.50%
City Tax	1.50%
Special Tax	0.00%
Combined Tax	8.25%

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

Killeen Sales Tax Calculator

Imagine you own a sporting goods store in Killeen, and a customer purchases a high-end mountain bike for $1,200. You need to calculate the correct sales tax using the specified tax rates and determine the final total the customer needs to pay.

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

As of January 1, 2025, the sales tax rate in Killeen, TX, is 8.25%. This is made up of:

• Texas State Sales Tax: 6.25%
• City of Killeen Sales Tax: 2.00% (used for city services 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:

1,200 × 0.0825 = 99.00

So, the sales tax on the mountain bike is $99.00.

Step 4: Calculate the Total Amount Due from the Customer

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

1,200 + 99.00 = 1,299.00

Final Breakdown:

• Mountain Bike Price: $1,200
• Sales Tax (8.25%): $99.00
• Total Amount Customer Pays: $1,299.00

What If a Customer Buys Multiple Items?

If a customer purchases multiple taxable items, follow the same process. Suppose they also buy a helmet ($100) and a pair of gloves ($50) in the same transaction.

1. Add Up All Taxable Items:

1,200 + 100 + 50 = 1,350

2. Multiply by the Sales Tax Rate:

1,350 × 0.0825 = 111.38

3. Add the Sales Tax to the Total:

1,350 + 111.38 = 1,461.38

So, the customer owes $1,461.38 for their entire purchase.

Why This Matters for Your Business

• Ensures compliance with Killeen sales tax law and prevents penalties.
• Accurate tax collection helps avoid overcharging or undercharging customers.
• Sales tax must be remitted to the Texas Comptroller, so proper calculation ensures accurate reporting.
• Keeping track of sales tax simplifies bookkeeping and tax filing.

FAQ on Sales Tax in Killeen TX

What is the Sales Tax in Killeen TX?

As of January 1, 2025, the total sales tax rate in Killeen, Texas, is 8.25%. This rate comprises the Texas state sales tax of 6.25%, a 0.50% tax levied by Bell County, and an additional 1.50% local tax imposed by the City of Killeen.

Killeen Sales Tax Filing Steps