Texas is one of the largest states in the United States where sales tax plays an impactful role and contributes a huge fund to the state’s public services and infrastructures that include education, transportation, and entertainment. If you own a business in Texas, it is highly important to understand the rules and regulations of Texas sales and use tax to keep your business compliant with state regulatory protocols. At Tax 365, we help our clients abide by state regulatory protocols to ensure a seamless business operation. A sales tax is a consumption tax which is imposed on goods and services. In Texas, this tax is applied to most of the retail and rental goods and services along with this, some professional services are also subjected to sales tax in Texas.

The base Texas sales tax rate is 6.25%. This is a statewide sales tax rate. Along with this, an additional local sales tax rate is applied as per counties and cities, and this may rise up to 2%. Therefore, the total Texas sales tax rate may rise to 8.25% approximately. At Tax 365, our experienced tax professionals always keep themselves updated with the latest tax laws while offering accurate Texas sales tax rates by county through our online Texas sales tax calculator. Because different cities impose different sales tax rates on products and services. Sales tax in Texas is applicable to all tangible goods and services that include clothing, accessories, furniture and appliances, restaurant meals, and retail goods. On the other hand, goods that are exempted from sales tax in Texas include prescription medicine, grocery items, manufacturing equipment, and machinery products. Businesses operating in Texas are subjected to collect remit sales tax to the government to ensure a seamless business operation.