Sales Tax in Texas

Sales tax in Texas is a critical compliance requirement for businesses operating in the state. The current state sales tax in Texas is 6.25%, but local taxing jurisdictions (cities, counties, and transit authorities) can add up to 2%, making the maximum combined rate 8.25%.

Do I Need a Texas Sales Tax Permit?

You need a Texas sales tax permit if you are engaged in business in Texas and sell, lease, or rent tangible personal property or provide taxable services. This applies whether your LLC is formed in Texas or operates as a foreign entity.

What Services Are Taxable?

While most physical goods are taxable, Texas also taxes 17 specific service categories. These include data processing, debt collection, information services, and real property repair. SaaS (Software as a Service) is generally considered a taxable data processing service in Texas.

Filing Deadlines

Sales tax in Texas must be remitted monthly, quarterly, or yearly, depending on your volume of sales. The Texas Comptroller will assign your filing frequency when you register for your permit.

Official Resources & Filing Information

The U.S. Small Business Administration provides an official comparison of business structures including LLCs, corporations, and sole proprietorships. See SBA Choose Your Business Structure.

For Texas-specific filing requirements, visit the Texas Secretary of State official business portal.

Official SBA guidance on registering your business with federal, state, and local agencies. See SBA Register Your Business Guide.

Start your formation with Lovie — $499 one-time, state filing fee included.