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Sales tax in Texas

Sales tax rates across the state of Texas vary from city to city and county to county. Unlike a flat statewide sales tax, the complex mix of state, regional, city, transit and other special taxes means Texans don’t pay uniform rates.

Texas State Sales and Use Tax

Texas has a 6.25% baseline statewide sales tax called the Texas state sales and use tax. This applies broadly to retail goods as well as some specific services purchased anywhere in the Lone Star State.

Additional Local Sales Taxes

On top of the 6.25% state tax, local city, county, transit and special purpose taxes add more percentages atop the base rate. These extra regional and local sales taxes in Texas mean final rates paid depend heavily on precise geographic location within the state.

Average Sales Tax Rates in Texas Cities

Most larger Texas cities have higher sales taxes due to various city and county-level add-ons. The average sales tax rate across Texas cities falls between 8% and 9% - notably above the 6.25% state tax.

Dallas sales tax hits 8.25%, Houston sales tax comes out to 8.25%, while Austin sales tax averages 8.25% also once all local contributions are included.

Highest Texas Sales Tax Rates

Currently Pecos, Texas has the highest city sales tax in the state at just over 9.25%. This exceptionally high rate includes a 8.25% base city tax plus Reeves County’s 1% sales tax piled on top.

While Texas has a state sales tax of 6.25%, actual sales tax paid varies widely across Texas’ cities and counties. Average local taxes tack on 1-3 extra percentage points. It’s essential Texans check their local rates to accurately budget for overall costs of goods and services.

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