Sales tax is a tax imposed by state and local governments on the sale of goods and services and is usually calculated as a percentage of the sale price. Sales tax is sometimes referred to as retail sales tax.
In Texas, sales tax is imposed on the sale of tangible personal property and certain services. The state sales tax rate is 6.25%, but local jurisdictions such as cities, counties, transit authorities, and special purpose districts can also impose additional sales tax, which can make the total combined rate as high as 8.25%. Businesses selling goods or services in Texas are generally required to collect sales tax from customers and remit it to the Texas Comptroller of Public Accounts. The sales tax is a consumption tax, meaning it is paid by the end consumer of the goods or services. Certain items may be exempt from sales tax, such as groceries, prescription medicines, and some agricultural items. It's important for businesses to stay informed about the specific tax obligations they have, as failure to properly collect and remit sales tax can result in penalties and interest.