- Texas imposes a 6.25% sales tax on most goods and services.
- Local governments can add up to 2% in local sales tax.
- The total sales tax rate cannot exceed 8.25%.
- Use tax is owed if sales tax was not collected at the point of sale.
- Businesses with a physical presence in Texas are subject to physical nexus rules.
- Businesses exceeding a USD 500,000 economic nexus threshold are subject to economic nexus rules.
- Marketplace facilitators and sellers are subject to marketplace nexus rules.
- Nonprofit and government entities are exempt from sales and use tax.
- Food products like flour, sugar, bread, milk, eggs, fruits, and vegetables are not subject to sales and use tax.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
