Texas Sales Tax

The Texas sales tax rate, which is levied by the state legislature, is 6.25 percent. Additional local taxes implemented in Texas may be up to 2 percent; hence, the combined sales tax on any purchase may be 8.25 percent in Texas.
Sales tax is levied on purchases of taxable items and imposed on consumers. Merchants collect the sales tax from each transaction on taxable goods, and file the sales tax with the Texas Comptroller of Public Accounts annually, quarterly or monthly, depending on the amount of sales.

The local bodies that may implement sales tax in Texas are counties, cities, and transit or special purpose districts. The Texas Comptroller of Public Accounts assesses and maintains the sales tax service. Selling any taxable product or service requires the seller to have a Texas sales tax permit.

Purchase or transaction of any tangible private property is taxable in Texas, except for products such as medicine, meats, eggs, produce, bakery products and a a variety of other food products. Since May, 2006, the state also imposes a 1% tax on the gross receipts of businesses.
General partnerships and sole proprietorships are exampt from this tax.

Data collected on the sales tax allocation show that the Comptroller's office has processed approximately 2.6 million sales and use tax returns during the year of 2006. From over 1,350 cities, counties, transit authorities and special purpose districts an amount of $4.9 billion is collected as local sales tax.

The Comptroller has a well maintained website with all relevant information on the Texas sales tax, and also gives the option to file sales tax online. The e-filing of sales tax in Texas has made sales tax payment easier. The commission also publishes news letters from time to time on the receipts of the sales tax in a specific financial year.