Texas Sales Tax: Rates, Rules, and How to Calculate It (2026)

How much is sales tax in Texas?

The state base is 6.25%, and combined rates range from 6.25% to 8.25%, averaging 7.82%. Texas stands out with 2,678 taxing jurisdictions—more than any other state—reflecting its size and complexity. The highest rate is 8.25% in Hebbronville. Managing tax compliance in Texas requires precision.

With so many jurisdictions, a ZIP code doesn't cut it. Use an address-based lookup or an API like Sefro's to get the exact combined rate for any location in Texas. Location precision is crucial here.

What's taxed and what's exempt in Texas

Groceries are exempt from Texas sales tax, which is a benefit. Clothing is taxable. The exemption on food helps with consumer affordability.

SaaS and digital software are taxable in Texas, and restaurant food is also taxable. Prescription medicines are exempt. Verify the category of each item you're dealing with.

Do you have to collect Texas sales tax? (Economic nexus)

If your business is based outside Texas, you generally have to register, collect, and file once your sales into the state pass $500,000 in gross sales during any rolling 12-month period. This is called economic nexus, and it applies even if you have no office or staff in the state.

If you sell into Texas from out of state, the practical question is whether you've crossed that line. Watching your sales into each state is how you know when you're on the hook — and it's the kind of thing that's easy to miss until a notice shows up.

Nexus rules change often and vary by state (reviewed 2026-01-01). This is general information, not tax advice — confirm your obligations with the Texas Department of Revenue or a tax professional.

How to calculate Texas sales tax

The math itself is simple: multiply the taxable price by the combined rate for the buyer's location. A $100 order at 7.825% means about $7.82 in tax. The hard part is getting the right rate for every address, keeping it current as rates change, and doing it fast enough to run inside a checkout.

That's what Sefro does. One API call returns the combined state, county, city, and special-district rate for any US address, sourced from state Departments of Revenue and refreshed weekly. You can also calculate the full tax on an order, validate addresses, and pull return-ready reports. See how the data is sourced or pricing to start.

Look up the Texas sales tax rate for any ZIP

Enter a Texas ZIP code to see the live combined rate from the Sefro API.

Frequently asked questions