Waco Sales Tax Guide 2025 (Texas)

Navigating sales tax compliance in Waco, 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 for businesses, helping you focus on growth and increasing revenue by navigating the streamlined sales tax system without the headache of managing complex tax rules. In this guide, we’ll break down everything you need to know about sales tax in Waco for 2025.

Waco Sales Tax Rate(Texas)

As of January 1, 2025, the sales tax rate in Waco, Texas, is 8.25%, combining the 6.25% state tax and a 2% local tax. In 2021, Waco's sales tax collections exceeded budget expectations, reflecting economic growth.

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.)

Waco Sales Tax Calculator

Imagine you own a hardware store in Waco, and a customer uses the tax rate lookup tool to purchase a power drill for $250. You need to calculate how much sales tax to charge and determine the final total the customer must pay.

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

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

• Texas State Sales Tax: 6.25%
• City of Waco 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 power drill by the sales tax rate:

250 × 0.0825 = 20.63

So, the sales tax on the power drill is $20.63.

Step 4: Calculate the Total Amount Due from the Customer

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

250 + 20.63 = 270.63

Final Breakdown:

• Power Drill Price: $250
• Sales Tax (8.25%): $20.63
• Total Amount Customer Pays: $270.63

What If a Customer Buys Multiple Items?

If a customer purchases multiple taxable items, the process remains the same. Suppose they also buy a toolbox ($75) and a set of drill bits ($50) in the same transaction.

1. Add Up All Taxable Items:

250 + 75 + 50 = 375

2. Multiply by the Sales Tax Rate:

375 × 0.0825 = 30.94

3. Add the Sales Tax to the Total:

375 + 30.94 = 405.94

So, the customer owes $405.94 for their entire purchase.

Why This Matters for Your Business

• Ensures compliance with Waco taxes, including sales tax law, and prevents penalties.
• Accurate tax collection and integrations help 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 Waco TX

What is the Sales Tax in Waco TX?

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

Waco Sales Tax Filing