Texas Sales Tax: the 6.25% Rate, Local Add-Ons, Due Dates and Penalties

That's the short version. The detail that matters is where the local 2% comes from and what happens if you file a day late. This guide uses the Texas Comptroller's own sales and use tax pages, read in October 2026.

The Texas rate stack

Layer	Rate (as of October 2026)	Who sets it
State sales and use tax	6.25%	State of Texas
City, county, transit and special purpose district tax	Up to 2% combined	Local taxing jurisdictions
Maximum combined rate	8.25%	Set by the state cap

The state tax covers retail sales, leases and rentals of most goods, plus a list of taxable services. Local jurisdictions share the extra 2% between them, which is why two shops a few miles apart can charge different totals. The Comptroller publishes separate tables for city, county, transit and special purpose district rates, and a combined area table that shows how they stack.

How to find the right rate for an address

1. Open the Comptroller's Sales Tax Rate Locator and search the delivery or business address.
2. Check the combined rate it returns against the local codes table if the address sits near a city boundary.
3. Look at the quarterly updates list. The Comptroller posts rate changes and city annexed areas each quarter, so a rate that was right in spring can be wrong by autumn.
4. Set the rate in your till or checkout software and note the date you checked it.

When Texas sales tax reports are due

You don't choose your filing frequency. After your sales tax permit is approved, the Comptroller writes to tell you whether you'll file monthly or quarterly. If a due date lands on a Saturday, Sunday or legal holiday, it moves to the next working day.

Filing frequency	Report due
Monthly	The 20th of the following month (the April report is due May 20)
Quarterly, January to March	April 20
Quarterly, April to June	July 20
Quarterly, July to September	October 20
Quarterly, October to December	January 20
Yearly	January 20 for the previous year's sales

Bigger payers can be told to pay electronically through TEXNET. The Comptroller sends a letter when you cross that threshold, and payments over $1,000,000 must be started by 8 p.m. Central time on the banking day before the due date.

The discount most small sellers forget to claim

Here's the insight that's easy to miss. Texas pays you for filing on time. A permitted seller can keep a discount of 0.5% of the tax it reports and pays on time. If you prepay, you can claim the 0.5% plus another 1.25% for prepaying. It isn't a fortune for a small shop, but it's yours, and you lose it the moment a report is late.

Late filing penalties and interest

• A $50 penalty on each report filed after the due date, as of October 2026.
• A 5% penalty if the tax is paid 1 to 30 days late.
• A 10% penalty if the tax is paid more than 30 days late.
• Interest on past-due tax starting 61 days after the due date.

Put those together and a late report costs you the discount, a flat charge and a percentage penalty, before interest even starts. A report with nothing to pay still has a due date, so file it anyway.

Before you collect a cent

You need a permit before you make taxable sales, and the permit is what triggers your filing letter. My guide to the Texas sales tax permit walks through who needs one and how to apply. If you buy stock to resell, a resale certificate stops you paying tax on it twice.

Paying through TEXNET without missing the cut-off

TEXNET has two deadlines and they're easy to mix up. For a payment of $1,000,000 or less, you have until 10:00 a.m. Central time on the due date itself to start the transaction. For anything bigger, the cut-off is 8 p.m. Central time on the banking day before. The Comptroller only moves you onto TEXNET by letter, so if you haven't had that letter, you file and pay through the normal channels.

A quarterly filer's year, worked through

Say your permit letter puts you on quarterly filing. Your January to March sales are reported by April 20. April to June sales go in by July 20, July to September by October 20, and October to December by January 20. If any of those dates is a weekend or holiday, use the next working day. Each report is filed even if the quarter was quiet.

When you call the Comptroller, have your 11-digit taxpayer number ready. The office says waits are shorter from 8 to 10 a.m. and 4 to 5 p.m. Central time.

Common Texas sales tax mistakes

• Charging the 6.25% state rate and forgetting the local share.
• Using a rate from last year's table instead of the current quarter's.
• Skipping a report because there were no sales that period.
• Paying late and losing the 0.5% timely filing discount.
• Treating every service as exempt without checking the taxable services list.

My verdict

Texas sales tax is simple at the top and fiddly underneath. Start with 6.25%, look up the local share by address every time you open in a new place, and file by the 20th even when there's nothing to pay. Do that and you keep the discount, dodge the $50 charge and never meet the 10% penalty.

Georgia stacks local taxes on its state rate too, with names like LOST and SPLOST, and the Georgia sales tax guide explains how to read its rate chart.

Frequently asked questions

What is the sales tax rate in Texas?

The state rate is 6.25% as of October 2026. Local jurisdictions can add up to 2%, for a maximum combined rate of 8.25%.

When is Texas sales tax due?

Monthly reports are due on the 20th of the following month. Quarterly reports are due April 20, July 20, October 20 and January 20, and yearly reports are due January 20.

What is the penalty for filing Texas sales tax late?

There's a $50 penalty for each late report, plus 5% if tax is paid 1 to 30 days late or 10% if it's paid more than 30 days late, as of October 2026.

Does Texas give a discount for filing sales tax on time?

Yes. Permitted sellers can claim 0.5% of the tax reported and paid on time, plus 1.25% more if they prepay.

Is a Texas sales tax return needed if I had no sales?

Yes. The due date still applies, and a report filed after it's late, so file a return for every period you're assigned.