How to Calculate Sales Tax in Texas
Like many states, the state of Texas imposes a sales tax on purchases made within its borders. In addition, localities in Texas can impose additional taxes to raise revenue, but the total sales tax is capped at a maximum of 8.25 percent as of 2010. According to the Texas Comptroller, the sales taxes apply to "all retail sales, leases and rentals of most goods" in addition to "taxable services."
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Instructions
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Look up the total sales tax rate for the locality in which you are calculating sales tax. The state sales tax rate is 6.25 percent, but each locality can have additional city, county, transit and special purpose district sales taxes that can increase the total tax rate. The Texas Comptroller website lists the rates for each area.
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Divide the sales tax rate for your locality by 100 to convert it from a percentage to a decimal. For example, if you lived in Abilene (Jones County), you would divide 8.25 percent by 100 to find that the sales tax rate expressed as a decimal is 0.0825.
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Multiply the sales tax rate expressed as a decimal by your purchase amount to calculate the sales tax on your purchase. For example, if you made a $660 purchase and the tax rate expressed as a decimal was 0.0825, you would multiply $660 by 0.0825 to get $54.45.
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Comments
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The illusive part of this process is figuring out what the local rates are. They frequently vary with the specific location even within the same city based on whether the MTA tax is applicable or not. "Look up the total sales tax rate for the locality in which you are calculating sales tax" is useless advice.
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what if I'm not purchasing but selling. I work in a tire repair shop and need to know how much sales tax I have to pay forall of work I have done.
