The Texas (TX) state sales tax rate is currently 6.25%. Depending on local municipalities, the total tax rate can be as high as 8.25%.
At the local levels, city taxes can range from .25% – 2%; county rates vary from .5% – 1.5%; transit from .25% – 1%; and special purpose districts from .125% – 2%. However, the combined rate of local sales and use taxes cannot exceed 2%, making the highest possible combined tax rate 8.25%.
Not all cities and counties have a local code. Cities and counties without a local code do not charge a local sales and use tax. An example of the complexity of Texas state law is Spring, Texas. Spring is unincorporated but is located within a special purpose district. Local sales and use tax collected is not reported to Spring but to one of two possible tax jurisdictions.
Amazon.com owns and operates several fulfillment centers in Texas. This physical presence, or nexus, creates a sales tax obligation for Amazon and many sellers participating in Amazon’s Seller Central and Fulfillment By Amazon (FBA) programs.
Interest on past due taxes begins 61 days after the due date.
Avalara Sales and Use Tax Products for Texas
AvaTax – AvaTax is a powerful, online sales tax compliance solution that provides all businesses with a level of sales tax automation that until now has been available only to Fortune 500 companies. AvaTax’s transaction-based service model and seamless integration into business applications gives you rapid access to all jurisdiction assignments and real-time sales tax calculations. Cutting-edge technologies and superior processing logic can manage even the most complicated tax issues, such as situs, nexus, tax tiers, tax holidays, exemptions, certificate management and product taxability rules.
TrustFile - Avalara TrustFile provides detailed sales tax reporting for online sellers. Allowing businesses to know exactly where, when and how much to file. Ecommerce business owners can use TrustFile to determine whether or not they are collecting the right amount of sales tax in each individual state, and then store a record of their sales tax history securely in the cloud for free.