Sales Tax at a Southlake or Grapevine Shop: How the Local Rate Works

What is the sales tax rate in Southlake and Grapevine?

Both cities have a combined rate of 8.25% on the Comptroller’s city rate table. Texas imposes a 6.25 percent state sales and use tax on retail sales, leases and rentals of most goods, and on taxable services. Local jurisdictions can add up to 2 percent, for a maximum combined rate of 8.25 percent.

Both cities use the full 2 percent. Only the split changes. The rates below come from the Comptroller’s table, as read in October 2026.

The City of Grapevine’s tax page agrees. It says the city imposes an additional local sales tax of 2 percent, for a combined 8 1/4 percent.

Why does the split matter if the total is the same?

For a customer at the register, it does not. For your return, it can. The Comptroller reports local tax by jurisdiction, and each city and district has its own local code. Your sales and use tax return needs the right location. A wrong location can send money to the wrong place.

Use the Comptroller’s Sales Tax Rate Locator to search by address. The Comptroller says to use it to look up rates by address. Rates can change, so check it when you open a shop, move, or add a location.

Do I need a permit before I sell?

Yes, if you sell taxable items or services. The Comptroller’s application is for anyone engaged in business in Texas who sells or leases taxable items or taxable services. You apply before you collect tax.

Grapevine ties this to its own process. The city’s certificate of occupancy checklist says a Certificate of Occupancy cannot be issued until the sales tax number is provided. Southlake requires a Certificate of Occupancy for a new tenant, change of use, change of name or new owner. Plan the order of steps. Our guide to starting a business in Texas lists them.

When do I file and pay?

The Comptroller tells you by letter whether you file monthly or quarterly. Monthly filers’ reports are due on the 20th of the month after the reporting month. For example, the April report is due May 20.

Late filing has set penalties. The Comptroller lists a $50 penalty on each report filed after the due date. A 5 percent penalty applies if tax is paid 1 to 30 days late, and 10 percent after 30 days. Keep sales records by location so you can answer a notice quickly. See bookkeeping for what to track.

Does a Southlake or Grapevine address change anything else?

Property and franchise taxes work on separate rules. For the franchise side, read the Texas franchise tax glossary entry. Our pages for Southlake and Grapevine list more local facts.

How do nearby cities compare?

All of them reach the same total, but the split varies. The table uses the same Comptroller city rate table, as read in October 2026.

If you sell in more than one city, track sales by location from the start.

How should a shop keep its sales tax records?

Keep them simple and by location. Record each sale with the tax charged, and reconcile the total to your register or point-of-sale report every month, before the 20th. Save the permit letter that tells you whether you file monthly or quarterly.

1. Confirm the rate for each address you sell from.
2. Record taxable and non-taxable sales in separate lines.
3. Reconcile tax collected to your report before you file.
4. Save each filed report and payment confirmation.

A QuickBooks file set up for this makes the monthly report quick.

Next step

Wallace CPA offers bookkeeping and accounting for small businesses. Call (877) 682-1171 or use the form at /contact to set up sales tax tracking for your shop.

This post is general information, not advice for your situation. Talk to a CPA about your own situation.