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Calculating sales tax is an important part of doing business in Texas. Need help figuring out how much to charge your clients? Our easy-to-use calculator will do the work for you. Enter the total purchase amount and the sales tax rate, and let us crunch the numbers.
The state of Texas imposes a base sales tax rate of 6.25% on retail sales, leases and rentals of most goods and other taxable services.1 However, local jurisdictions—such as cities and counties—may impose an additional sales tax of up to 2% for a maximum combined rate of 8.25%.
Your sales tax rate will depend on where you purchase or sell goods in Texas. Use our calculator to find exactly how much sales tax you owe.
To calculate your Texas sales tax, you will need to know the purchase amount and your local sales tax rate. Your tax rate will depend on your location and range anywhere between 6.25% to 8.26%.
Multiply the Purchase Amount by the applicable Sales Tax Rate to get the Sales Tax amount
Add the Sales Tax to the original Purchase Amount to find the Total Cost
You can use these formulas or use our calculator for a faster answer.
Sales Tax = Purchase Amount × Sales Tax Rate
Total Cost = Purchase Amount + Sales Tax
Texas, like many states, exempts some items from sales tax to lessen the financial burden on consumers and support essential needs. Common exemptions include:
Most grocery items are exempt, but prepared foods and drinks are taxed2
Medications prescribed by a licensed healthcare professional and over-the-counter medicines for human consumption are tax-exempt3
Certain medical supplies and devices, such as wheelchairs and prosthetics, are exempt
Residential use of gas and electricity is exempt from sales tax in most of Texas, with a few exceptions4
Farmers, ranchers and timber producers can claim exemptions when purchasing items they will use in the production of agricultural and timber products intended for sale5
Handle your business’ sales, payments and budgeting —all in one platform.
1 Texas Comptroller: Sales and Use Tax
2 Texas Comptroller: Grocery and Convenience Stores
3 Texas Comptroller: Sales Tax Exemptions for Healthcare Items
4 Texas Comptroller: Local Sales and Use Tax on Residential Use of Gas and Electricity
5 Texas Comptroller: Agricultural and Timber Exemptions
6 Texas Comptroller: Texas Sales and Use Tax Frequently Asked Questions
