# Texas Sales Tax Guide (2026)

Canonical: https://trykintsugi.com/sales-tax-guides/usa/texas
Published: June 17, 2026

Texas charges 6.25% at state level, up to 8.25% with local taxes, and taxes SaaS on 80% of its value. Economic nexus starts at $500,000.

- **SaaS:** Taxable
- **Clothing:** Taxable
- **Groceries:** Exempt
- **Digital Goods:** Taxable

- **Effective date::** 
- **Scheduled change::** 

## Key Takeaways

Texas levies a 6.25% state sales tax, plus local taxes up to 2%, capping the combined rate at 8.25% [1]. You have economic nexus once total Texas revenue exceeds $500,000 over the preceding twelve calendar months, with no transaction-count trigger [2]. Texas taxes SaaS as a data processing service with 20% of the charge exempt, so 80% is taxable, and it taxes digital products; food for home consumption is exempt while clothing is taxable [3][4]. Request a redetermination hearing within 60 days of an assessment [6].

## Taxability Snapshot

## Sales Tax Rates

Texas levies a 6.25% state sales and use tax. Local jurisdictions can add up to 2%, capping the combined rate at 8.25%. Roughly 77% of Texas cities sit at the 8.25% maximum.

| Component | Rate | Scope |
| --- | --- | --- |
| State | 6.25% | Statewide |
| Local (combined) | up to 2.00% | Varies by location |
| Combined | up to 8.25% | Varies by location |

Combined rates in major Texas cities (2026):

| City | Combined rate |
| --- | --- |
| Houston | 8.25% |
| San Antonio | 8.25% |
| Dallas | 8.25% |
| Austin | 8.25% |
| Fort Worth | 8.25% |
| El Paso | 8.25% |

Texas sources in-state sales to the seller's location (origin-based); remote sales are destination-based. For 2026, remote sellers may elect a single local use tax rate of 1.75% — a combined 8.00% — instead of tracking every local rate. To find the combined rate for a specific address, use our [US sales tax calculator](/us-sales-tax-calculator).

## Registration or Nexus Threshold

Texas economic nexus is triggered when your gross revenue from sales into the state exceeds $500,000 over the preceding twelve calendar months. Gross revenue includes taxable, exempt, and marketplace sales. Once you cross the $500,000 safe harbor, you must obtain a permit and begin collecting no later than the first day of the fourth month after the month you exceeded it. Physical presence creates nexus immediately.

## Marketplace Facilitator Law

Under Texas Tax Code § 151.0242, a marketplace provider engaged in business in Texas has the rights and duties of a seller or retailer and must collect, report, and remit Texas sales and use tax on all taxable items sold through its marketplace, certifying to marketplace sellers that it will do so. A remote marketplace provider is not required to obtain a permit and begin collecting solely due to marketplace activity until total sales through its marketplace exceed $500,000 in the preceding twelve calendar months — the same $500,000 figure used in Texas's remote-seller economic nexus safe harbor — unless it is otherwise engaged in business in Texas. A remote marketplace seller whose only Texas sales run through a provider that has certified collection does not need a Texas sales-tax permit, though it must still include those marketplace sales when calculating its own $500,000 safe-harbor amount.[9]

## Filing Frequency & Deadlines

The Texas Comptroller assigns monthly, quarterly, or annual filing based on tax volume. Returns and payment are due the 20th of the month following the reporting period; if the 20th falls on a weekend or holiday, the deadline moves to the next business day. Timely filers can take a 0.5% collection allowance.

#### Exemptions

Texas exempts grocery food (flour, milk, produce, bread), prescription drugs, and over-the-counter medicines labeled with a Drug Facts panel; insulin is exempt regardless of prescription. Candy, soft drinks, and prepared food are taxable. Texas taxes many services, and SaaS is treated as a taxable data processing service — 20% of the charge is exempt, so 80% is subject to tax.

## Resale & Exemption Certificates

Texas buyers give the seller Form 01-339 (Texas Sales and Use Tax Resale Certificate) to buy items for resale instead of paying tax [5]. The seller keeps it as proof for at least four years [5].

## Penalties

A payment 1–30 days late incurs a 5% penalty; more than 30 days late raises it to 10%. Ignoring the Comptroller's notice adds another 10%. A $50 late-filing fee applies to every late report, even one showing no tax due.

## Audits & Appeals

You have 60 days from the date of a notice of tax due or deficiency determination to request a redetermination hearing [6]. Missing the deadline makes the determination final [6].

## Sources

- [1] [Texas Comptroller — Sales and Use Tax (6.25% state, local cap 8.25%)](https://comptroller.texas.gov/taxes/publications/94-171.php)

- [2] [Texas Comptroller — Remote Sellers ($500,000 economic nexus)](https://comptroller.texas.gov/taxes/sales/remote-sellers.php)

- [3] [Texas Comptroller — Data Processing Services (SaaS, 80% taxable)](https://comptroller.texas.gov/taxes/publications/94-127.php)

- [4] [Texas Comptroller — Grocery and Clothing Taxability](https://comptroller.texas.gov/taxes/publications/96-280.php)

- [5] [Texas Comptroller — Form 01-339 (Resale Certificate)](https://comptroller.texas.gov/forms/01-339.pdf)

- [6] [Texas Comptroller — Redetermination and Appeals (60 days)](https://comptroller.texas.gov/taxes/audit/manuals/fundamentals/ch8.php)

- [7] [Texas Comptroller — Sales Tax Holidays](https://comptroller.texas.gov/taxes/publications/98-490/)

- [8] [Texas Comptroller — Sales Tax Permit Registration](https://comptroller.texas.gov/taxes/permit/)

- [9] [Texas Comptroller — Marketplace Providers and Marketplace Sellers](https://comptroller.texas.gov/taxes/sales/marketplace-providers-sellers.php)

Verified July 2026 against Texas Comptroller of Public Accounts published guidance.

## Frequently Asked Questions

### What is the Texas sales tax rate in 2026?

6.25% state, plus up to 2% local for a maximum combined 8.25%. Remote sellers can use a single local use rate of 1.75% in 2026 (8.00% combined).

### What is the Texas economic nexus threshold?

$500,000 in gross Texas revenue over the preceding 12 months, including taxable, exempt, and marketplace sales.

### Is SaaS taxable in Texas?

Yes. SaaS is a taxable data processing service; 20% of the charge is exempt, so 80% is subject to sales tax.

### Are groceries taxed in Texas?

No. Grocery food is exempt, but candy, soft drinks, and prepared food are taxable.

### When are Texas sales tax returns due?

The 20th of the month after the reporting period, shifting to the next business day on weekends or holidays.

### What is the penalty for late Texas sales tax?

5% if 1–30 days late, 10% if more than 30 days late, plus a $50 fee per late report.

## Related Reading

- [Alcohol Tax in Texas: What Online Retailers Need to Know](/blog/alcohol-tax-in-texas)

- [Does Texas Have Sales Tax on Clothes: 2026 Guide for Businesses](/blog/does-texas-have-sales-tax-on-clothes)

- [How to Get a Texas Sales Tax Permit for Businesses Step by Step](/blog/how-to-get-texas-sales-tax-permit-for-businesses)

## US Sales Tax Calculator