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%.
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.
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.
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.
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State-specific formation guides, cost breakdowns, compliance checklists, and expert comparisons — updated for 2026.