Texas taxes
Texas Sales Tax Explained
Understand Texas state and local sales tax, exemptions, online purchases, use tax, permits, and official transaction verification.
State and local tax
A taxable transaction may include the statewide rate plus city, county, transit, or special-purpose district components. The correct combined rate depends on the transaction, location, delivery destination, and Texas sourcing rules.
Taxable and exempt purchases
Many sales of tangible personal property are taxable unless an exemption applies. Some services are taxable, while many basic grocery items and qualifying medical, agricultural, manufacturing, resale, or exempt-organization purchases may receive different treatment. Documentation must match the legal exemption.
Online purchases and use tax
Marketplace providers and remote sellers may collect Texas tax at checkout. When tax is not collected on a taxable purchase, Texas use-tax obligations may still apply.
Business permits and records
A seller of taxable goods or services should determine whether a Texas sales-tax permit, collection, filing, and recordkeeping are required. Resale certificates apply to qualifying purchases for resale—not ordinary business consumption.
Verify a transaction
- Identify the exact product or service.
- Confirm whether it is taxable.
- Check any exemption and required certificate.
- Determine the correct transaction location.
- Use the official rate and guidance tools.
- Retain invoices and supporting records.