Please Read the Following Information Before Completing Your Sales and Use Tax Return
Sales tax allocation data collected during the past year showed the Comptroller’s office processed more than 2.9 million sales and use tax returns, allocating $5.9 billion in local sales tax to more than 1,400 cities, transit authorities, counties and special purpose districts. Taxpayer accuracy in collecting and reporting local sales tax is a vital part of the allocation process because the data reported on sales and use tax returns are used to determine the amount of local tax each of these jurisdictions receives.
Local sales and use tax rate information is available to search, view or download from the Comptroller’s website, Comptroller.Texas.gov, Local Sales and Use Tax. The Comptroller’s website is updated on the first day of each quarter (January, April, July and October) with the most current sales and use tax rate information. Notice of changes effective each quarter are posted on the website approximately four weeks in advance.
The state sales and use tax rate is 6.25 percent. State law limits the collection of local sales and use tax to no more than 2 percent. The combined state and local rate may not exceed 8.25 percent. Please refer to publication #94-105, Guidelines for Collecting Local Sales and Use Tax, for more detailed information.
The local sales and use tax rates for Texas cities, transit authorities, counties, special purpose districts (SPDs) and combined areas are on the Comptroller’s website, Local Sales and Use Tax. The name, local code, local rate, and total rate are listed for each taxing jurisdiction. The total rate for a city comprises the state tax rate, the city rate (if applicable) and the rates for the associated taxing jurisdictions listed beneath the city name.
The local code for each taxing jurisdiction begins with a specific number. Cities start with a “2,” transit authorities start with a “3,” counties start with a “4,” SPDs start with a “5” and combined areas start with a “6.” Cities and counties without an assigned local code do not impose a local sales and use tax and should not be reported on the sales and use tax return.
Transit authorities, counties and SPDs that impose a local sales and use tax, such as San Antonio MTA and ATD (Advanced Transportation District), Delta and Fannin counties and Delta County Emergency Services District in the examples below, are listed beneath the associated city’s name with their local code and local rate. County names shown in parentheses next to a city name, such as Bexar and Hidalgo in the examples below, are shown as a reference only. These counties have not adopted a county sales and use tax and should not be listed on the sales and use tax return supplement to report local data. If a city is in more than one county, the total tax due may be different in each county, as with Pecan Gap below.
|Example:||Local Code||Local Rate||Total Rate|
|Alamo (Hidalgo Co)||2108092||.020000||.082500|
|Delta Co Emergency Services District||5060506||.005000|
|San Antonio (Bexar Co)||2015012||.012500||.082500|
|San Antonio ATD||3015664||.002500|
|San Antonio MTA||3015995||.005000|
Cities, transit authorities, counties and SPDs are separate taxing jurisdictions. Sales and use tax data should be reported for individual local taxing jurisdictions on the sales and use tax return supplement, as shown in the example below, and not combined and reported to one taxing jurisdiction. Unincorporated areas without an assigned local code should not be reported on the sales and use tax return supplement. These areas are shown in the main alphabetical listing of this book only if there is a local tax responsibility in a geographically defined area.
|Amount Subject To Tax
(Whole Dollars Only)
|Tax Rate||Amount Of Tax Due
(Multiply Item 3 by Item 4)
|San Antonio ATD||3015664||XX,XXX||.002500||XXX.XX|
|San Antonio MTA||3015995||XX,XXX||.005000||XXX.XX|
|Delta Co Emergency Services District||5060506||XX,XXX||.005000||XXX.XX|
Answers to Frequently Asked Questions About Local Sales Tax
Spring is an unincorporated area, without geographically defined boundaries, that does not impose a local sales and use tax. The portion of the area known as Spring in Harris County is located in the Houston MTA area. There are other local jurisdictions in that area that do impose a sales and use tax. A very small portion of the area known as Spring is located within the Old Town Spring Improvement District, which is a special purpose district (SPD) with a sales and use tax. Other portions of the area known as Spring may be located in Harris County Emergency Services Districts No. 7 or 28. These SPDs are referenced on the Comptroller’s website, SPDs with Other Boundaries section, with instructions to call the district to determine if an address is located inside the SPD. Local sales and use tax collected in the Houston MTA or the special purpose districts should be reported to the appropriate taxing jurisdiction, not to Spring.
The Woodlands is an unincorporated area, without geographically defined boundaries, located in Montgomery County and Harris County. The area known as The Woodlands does not impose a city sales and use tax. The special purpose district known as The Woodlands Township is located within the unincorporated areas of Montgomery and Harris counties known as The Woodlands and does impose a sales and use tax. The Woodlands Township Economic Development Zone and the Town Center Economic Development Zones No. 1, No. 2, No. 3 and No. 4 each have special purpose district sales and use tax and are located within The Woodlands Township. The portion of The Woodlands Township that is in the unincorporated area of Harris County is part of The Woodlands Economic Development Zone and not in the Houston MTA. These SPDs are referenced in the SPDs with Other Boundaries section, with instructions to call the districts to determine if an address is located inside any of these SPDs. Local sales and use tax collected in these SPDs should be reported to the appropriate special purpose district.
Municipal Utility District (MUDs) do not impose local sales tax; however, some utility districts have entered into strategic partnership agreements (SPAs) with neighboring cities. These agreements allow the city sales and use tax to be imposed and collected in a specific area of the utility district. For local sales taxing purposes these areas are treated as if they are in the city limits.
The DFW Airport is not a taxing jurisdiction with an assigned code. The DFW Airport area is located within the cities of Euless, Grapevine and Irving. To determine the correct taxing jurisdiction, please use a street locator map, verify the address by calling the city in which the sale or delivery was made, or use our Tax Rate Locator.
Local sales and use tax should be reported based on the physical location address and not a postal address.
- Lakeline Mall has a postal address of Cedar Park, Texas, but is physically located within the city of Austin. Local sales and use tax collected in Lakeline Mall should be reported to the city of Austin and the Austin MTA, not to Cedar Park.
- Baybrook Mall has a postal address of Friendswood, Texas, but is physically located within the city of Houston. Local sales and use tax collected in the Baybrook Mall should be reported to the city of Houston and the Houston MTA, not to Friendswood.
The area known as Kingwood, in Harris County, was annexed by the city of Houston effective January 1, 1997. Although it has a postal address of Kingwood, local sales and use tax collected in this area should be reported to the city of Houston and the Houston MTA, not to Kingwood.
Because many cities in Texas share a common ZIP Code and many ZIP Codes encompass an area both inside and outside a taxing jurisdiction, we do not recommend using them as a method of reporting local sales and use tax.
We now have a Tax Rate Locator on our website, which allows you to enter a specific address to determine the taxing jurisdiction(s) at that address. Simply enter the address and we’ll tell you which taxing jurisdiction(s) apply.