--- title: "Sales and use tax: Definition and Sources | Tax Glossary" description: "Sales and use tax is the Texas tax on retail sales and taxable services; the state rate is 6.25 percent and local rates can bring the total to 8.25 percent." url: https://wallacecpa.multisites.ai/glossary/sales-and-use-tax publisher: Wallace CPA phone: +1-877-682-1171 quote: https://wallacecpa.multisites.ai/contact --- Texas tax # Sales and use tax Sales and use tax is the Texas tax on retail sales and taxable services; the state rate is 6.25 percent and local rates can bring the total to 8.25 percent. Texas charges a state sales and use tax on most retail sales, leases and rentals of goods, and on taxable services. The Comptroller lists the state rate at 6.25 percent. Cities, counties and special districts can add up to 2 percent, for a combined top rate of 8.25 percent. A seller needs a permit from the Comptroller, collects the tax and files returns. Use tax applies when you buy taxable items without paying sales tax, such as from an out of state seller. Sellers keep records of taxable and exempt sales, which ties to good [bookkeeping](https://wallacecpa.multisites.ai/glossary/bookkeeping). The [Texas business taxes guide](https://wallacecpa.multisites.ai/guides/texas-business-taxes) covers the rules, and the [Texas franchise tax](https://wallacecpa.multisites.ai/glossary/texas-franchise-tax) is a separate tax. [Wallace CPA can helpSmall business accounting](https://wallacecpa.multisites.ai/services/small-business-accounting) ## Related terms - [Texas franchise tax](https://wallacecpa.multisites.ai/glossary/texas-franchise-tax) - [Bookkeeping](https://wallacecpa.multisites.ai/glossary/bookkeeping) - [Chart of accounts](https://wallacecpa.multisites.ai/glossary/chart-of-accounts) ## Sources 1. [Texas Comptroller: Sales and use tax](https://comptroller.texas.gov/taxes/sales/) ## Talk to Wallace CPA Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one. [Call (877) 682-1171](tel:+1-877-682-1171)[Send a message](https://wallacecpa.multisites.ai/contact) 180 State Street, Suite 225, Southlake, TX 76092