What Is the Texas Sales Tax Calculator?
This calculator applies to the United States — specifically Texas (TX). It estimates the sales tax and final total on a purchase using the Texas state sales tax rate of 6.25%, plus any applicable local sales tax (city, county, transit, and special purpose districts), which can total up to 2%. The maximum combined rate in Texas is therefore 8.25%. Rates are current as of the 2024 tax year.
How to Use It
Enter the purchase price (before tax) and your local sales tax rate as a percentage. If you do not know your local rate, leave it at the common maximum of 2% for a worst-case estimate, or set it to 0% to see state-only tax. The calculator returns the dollar amount of sales tax, the combined rate, and the total price you would pay at checkout.
The Formula Explained
Texas uses a destination-based combined rate. First the combined rate is found: combined = 6.25% + local%. The tax is then price × (combined ÷ 100), and the total is simply price + tax. Local rates are capped, so any local figure above 2% is treated as 2%.
$$\text{Total} = \text{Price} \times \left(1 + \frac{6.25 + \text{Local Rate (\%)}}{100}\right)$$$$\begin{gathered} \text{Tax} = \text{Price} \times \frac{6.25 + \text{Local Rate (\%)}}{100} \\[1.5em] \text{Total} = \text{Price} + \text{Tax} \end{gathered}$$
Worked Example
Suppose you buy an item for $100 in a city with a 2% local rate. The combined rate is \(6.25\% + 2\% = 8.25\%\).
$$\text{Tax} = \$100 \times 0.0825 = \mathbf{\$8.25}$$$$\text{Total} = \$100 + \$8.25 = \mathbf{\$108.25}$$
FAQ
Is groceries or medicine taxed in Texas? Most unprepared food and prescription/OTC drugs are exempt from Texas sales tax — this tool assumes a taxable item.
What is the highest sales tax in Texas? The maximum combined rate is 8.25% (6.25% state + 2% local).
Does Texas have a state income tax? No. Texas has no state personal income tax, which is partly why sales tax is a major revenue source.
