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Texas Sales Tax Guide for Small Businesses

Everything you need to know about sales tax in Texas — rates, deadlines, exemptions, and how to stay compliant without the headache.

Last updated March 2026

Quick Facts

State Rate

6.25%

Avg. Combined

8.19%

Filing Frequency

Monthly, Quarterly, or Annual

Vendor Discount

Yes

Home Rule

No

Texas Sales Tax Rates

Texas's state sales tax rate is 6.25%. Cities and counties can add local taxes on top. The average combined rate across Texas is 8.19%.

The highest combined rate in the state can reach up to 8.25% in some jurisdictions.

Filing Deadlines & Frequency

Filing Frequency

Monthly, Quarterly, or Annual — assigned by TX Comptroller based on tax liability

Due Dates

20th of the month after the reporting period

File Online

Texas Comptroller of Public Accounts — WebFile: https://comptroller.texas.gov/taxes/sales/

Prepayment Required

Prepayment required if your tax liability exceeded $100,000 in the prior state fiscal year.

What's Taxable for Restaurants & Food Businesses

Prepared Food

Yes — prepared food and restaurant meals are taxable at the full 8.19% combined rate.

Grocery Food

Exempt from sales tax. Grocery food is exempt. Prepared food, candy, and soft drinks are taxable. Bakery items are exempt if sold without eating utensils.

Alcohol

Subject to sales tax plus a 6.7% mixed beverage gross receipts tax on cocktails and a $0.198/gallon beer tax

Vendor Discount

Texas offers a vendor discount

0.5% of tax due (timely filing discount) if filed and paid on time

This is money back in your pocket for filing on time. TaxAside files on time, every time — so you capture this discount automatically.

Penalties for Late Filing

Late Filing Penalty

5% if 1–30 days late, 10% if 31+ days late

Interest

Prime rate + 1%, adjusted annually (minimum 5%)

Miss a deadline and Texasstarts charging penalties and interest immediately. That adds up fast on a busy restaurant's tax bill.

TaxAside's On-Time Guarantee covers up to $5,000 in penalties if we ever file late.

Calculate Your Texas Sales Tax

Texas Sales Tax Calculator
$
State tax (6.25%)$0.00
Est. local tax (1.94%)$0.00
Total tax (8.19%)$0.00
Total with tax$0.00

This calculator uses average combined rates. Your actual rate depends on your exact location.

Get your exact rate →

How TaxAside Helps in Texas

  • We file on time so you capture Texas's vendor discount automatically.
  • Daily set-asides mean no tax-day surprises. We pull, calculate, set aside, and file — you do nothing.
  • On-Time Guarantee covers up to $5,000 in penalties if we're ever late filing your Texas return.
Start Your Free Trial

5-minute setup. No credit card required.

Related State Guides

New Mexico

7.81% avg. combined

Oklahoma

8.94% avg. combined

Arkansas

9.47% avg. combined

Louisiana

10.01% avg. combined

Tired of worrying about Texas sales tax?

Let TaxAside handle it. We connect to your POS, set aside the right amount every day, and file your return on time — guaranteed.

Start Your Free Trial

5-minute setup. No credit card required.

Additional Notes

  • • Texas has a maximum combined rate of 8.25% (6.25% state + 2% local cap)
  • • No state income tax — the state relies heavily on sales tax revenue