Austin, Texas Sales Tax 2026

Austin is located between Travis, Williamson, and Hays counties in Texas. The combined sales tax rate is 8.25%.

The total sales tax rate in Austin comprises the Texas state tax and any applicable special or district taxes. The city also imposes an additional sales tax of 1.00%. The table below provides a breakdown of the sales tax rate by jurisdiction.

Combined Sales Tax Rate	8.25%
Texas	6.25%
Travis County	0.00%
Austin	1.00%
Capital Metro (CapMetro) Transit Tax	1.00%

Austin Sales Tax Calculator

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The TaxHero sales tax calculator provides a combined sales tax rate based on a full address lookup. A complete address ensures precision since ZIP codes may cross different tax jurisdictions. Results are for reference and may need additional context for compliance. Contact us today for a demo and learn how TaxHero can support your business.

Who Needs to Collect Sales Tax in Austin, Texas?+

A city with live music, a thriving startup ecosystem, and major tech employers, Austin is a fast-growing hub for businesses of all sizes.

In Texas, businesses must collect sales tax if they have a sales tax nexus and make taxable sales in the state. This applies to businesses with a physical presence in Austin and to remote sellers that meet Texas’s economic nexus threshold.

Remote sellers without a physical presence may collect a single local use tax rate of 1.75%, rather than calculating and remitting tax for each individual taxing district within Houston.

What Creates Sales Tax Nexus in Austin, Texas?+

A sales tax nexus is created based on your business’s significant presence in a state. Two types of sales tax nexus determine your business’s presence in a state: physical nexus and economic nexus.

Physical Nexus+

A physical nexus is established by having a substantial physical presence or engaging in enough taxable sales activities within a state. Several factors determine a physical nexus in Texas.

Physical Location: This means having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This applies to situations where you store products within the state, whether it’s done via a third-party fulfillment center or 3PL (such as Amazon FBA) or an online marketplace.
Business Representatives: Having employees, independent contractors, agents, or other representatives operating within the state on your behalf.
Affiliate Nexus: An out-of-state seller may establish a taxable presence in Texas if there is a significant ownership link with any entity in Texas that fulfills orders, shares a brand or product line, or conducts business activities that bolster the seller’s market within the state.
This includes affiliates that manage distribution centers, conduct business under a similar name, or engage in activities on the seller’s behalf, such as handling returns.
Presence at Trade Show: Attending a trade show in Texas to promote products or take orders is considered doing business in the state and requires collecting Texas use tax, regardless of where orders are processed or fulfilled. Even a single day of participation creates a sales tax nexus for a full year after the event.

Economic Nexus+

Economic nexus is established based on two common factors. First is your business’s total sales revenue, and second is the number of transactions you’ve had within the state. In Austin, Texas, the economic nexus threshold is:

$500,000 in gross revenue

To read a comprehensive list of all sales tax rules in Texas, you may visit and refer to the governing sales tax nexus requirements in Texas.

What are Taxable and Non-Taxable Products in Austin, Texas?+

Every state has different rules regarding the taxability of goods and services. In Austin, Texas, a variety of goods are subject to sales tax, and a few are exempt. Check the table below for reference:

PRODUCT	TAXABLE	EXEMPT
Tangible Products	Clothing Jewelry Cosmetics Home Goods	Groceries Baby Products (i.e., Diapers, Baby Food, Baby Bottles, Baby Wipes, Milk, Formula, Medicated products) – exempted according to SB 379 enacted last September 2023 Feminine Hygiene Products – exempted according to SB 379, enacted last September 2023 Prescription Medications Nutritional Supplements Over-the-Counter Drugs and Medicines Textbooks Medical Devices Energy-efficient Appliances
Services	Majority of service-based transactions are generally not taxable in Texas.	Medical Services Project Management Employment Services
SaaS and Digital Products	SaaS and digital products are taxable in Texas because they’re classified as data processing services. However, Texas offers a 20% exemption, meaning sales tax applies to only 80% of the invoice.	n/a
Shipping and Handling	Shipping and handling charges are taxable in Texas if the item being sold is taxable. Texas is a delivery-inclusive state, meaning delivery fees are part of the taxable sales price	Shipping and Handling charges in Texas are non-taxable if the following conditions are met: the buyer/customer paid the shipping charge separately from the sale of the product to the shipping carrier, or delivery/freight company, or The item is exempt.

For in-depth guidance on taxabilities and exemptions on goods and services, read our Ultimate Business Guide to Sales Tax in Texas.

How to Get a Sales Tax Permit in Austin, Texas?+

Once you’ve established a sales tax nexus in Austin, Texas, your next step is making sure you stay compliant by registering your business for a sales tax permit, also known as a seller’s permit or a business license in other states.

To get a sales tax permit in Austin, follow our step-by-step guide:

Step 1: Visit the Texas Comptroller of Public Accounts eSystems website and select “First Time User – Sign Up” to set up your profile.
Step 2: From the eSystems Menu, choose “Texas Sales and Use Registration” to begin the sales tax permit application.
Step 3: Gather and submit the necessary business details and documents required to complete your Texas seller’s permit registration.
Step 4: Complete the registration process until your account is fully set up.

After receiving your Texas sales tax permit, you must keep it displayed at all times in your business’s physical locations. Renewal is not required; it remains valid as long as the business exists, with no changes in ownership or structure.

How Do You File and Remit Sales Tax in Austin, Texas?+

After registering your business in Austin, Texas, your next step is filing and remitting sales tax returns on time. But before filing your sales tax returns, you must know the filing schedule assigned to you by the state.

To begin filing and remitting your sales tax returns in Texas, follow our step-by-step guide:

Step 1. Go to the state sales tax portal website – eSystems Webfile.
Step 2. Prepare your Ecommerce Sales Tax Data (e.g., Taxes Report from Shopify).
Step 3. Log in using your username and password. Check your shared email or phone number, and input the OTP when applicable.
Step 4: Under the Assigned Tax/Fee section, click Sales and Use Tax.
Step 5: In the File and Pay Taxes section, select File Original Return, then click Continue.
Step 6: Choose the period you are filing, then click Continue.
Step 7: Enter the total sales made in Texas, including the taxable sales based on your ecommerce sales tax report.
Step 8: Review the summary of your return. After that, click Continue.
Step 9: Enter your bank information and select the payment date, then click Agree and Continue.
Step 10: After confirming the payment details, click “Submit Payment.”
Step 11: Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common practice.

NOTE: Late filings result in penalties and fees. Texas offers several incentives and rules that can reduce sales tax costs or penalties if you file and pay correctly. The timely filing discount is 0.5%, but businesses can also claim an additional 1.25% for prepaying.

For more filing tips, you can read our comprehensive guide: How To File Texas Sales Tax Online.

Austin District and Special Tax Rates: CapMetro Transit Tax+

If your business makes taxable retail sales in Austin from a location within a taxing district, you may be required to collect the Capital Metropolitan Transportation Authority (CapMetro) sales tax. This 1.00% special district sales tax applies to sales of taxable tangible personal property made within the CapMetro service area and is in addition to the Texas state and local sales tax rates.

To confirm whether your business address is located within the CapMetro district and to find the correct combined sales tax rate, you can look up the rate by address or ZIP code using our sales tax calculator.

Austin, Texas Contact Information+

State: Texas Comptroller of Public Accounts

City: City of Austin Tax Department

Contact: 800-252-5555

Popular ZIP codes in Austin, Texas+

73301 78701 78702 78704 78723 78741 78744 78745 78748 78753

Frequently Asked Questions+

1. How much is sales tax in Austin, TX?

For 2026, the minimum combined state, county, and city sales tax rate for Austin, Texas is 8.25%. Texas, on the other hand, is currently at 6.25%.

2. Is sales tax 8.25% everywhere in Texas?

Texas has a state sales and use tax rate of 6.25 %. In addition, local jurisdictions such as cities, counties, special-purpose districts, and transit authorities can levy their own sales and use taxes of up to 2%, bringing the maximum combined rate to 8.25%.

3. What is Texas grocery tax?

Most grocery items in Texas are exempt from sales tax. Essential foods such as milk, bread, eggs, fresh fruits and vegetables, canned goods, and other pantry staples are not taxed, helping keep basic necessities affordable for consumers.

Having Trouble Navigating Austin, Texas Sales Tax?

Skip the hassle and let TaxHero manage your sales tax in Austin, Texas.

From tracking your nexus, registering your business, and filing your sales tax returns, we do it all for you so you can keep focusing on growing your business.

Discover how TaxHero can support your business and ensure you stay compliant nationwide, book a free demo today!

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