Minimum Sales Rate Tax for 2024
| 7% | Column content | Column content | Column content | Column content | |
| 1% | Column content | Column content | Column content | Column content | |
| 0% | Column content | Column content | Column content | Column content | |
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| 1% | Column content | Column content | Column content | Column content | |
| Rtd Greater Denver | Column content | Column content | Column content | Column content | |
| Scientific & Cultural Fac.(cd) | Column content | Column content | Column content | Column content | |
| Regional Transport Authority | Column content | Column content | Column content | Column content | |
| Minimum combined sales tax rate value | 8.25% | Column content | Column content | Column content | Column content |
| Special tax | Column content | Column content | Column content | Column content | |
| Economic sales nexus threshold | $500,000 | Column content | Column content | Column content | Column content |
| Transactions threshold | N/A | Column content | Column content | Column content | Column content |
| Sales tax return filing due date | Last day of the month following the reporting period | Column content | Column content | Column content | Column content |
The base state sales tax rate in Texas is 6.25%, but since the city-specific tax rate is 1%, the Travis County tax rate is 0% and the Austin Mta Transit tax is 1%, the minimum sales tax rate for Austin is 8.25%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Looking for help calculating your sales tax? Contact us today to book a free consultation!
What is nexus?
In Austin, businesses must understand “nexus” to determine their tax obligations. Nexus refers to the connection that requires a business to collect sales tax in a state. This concept became even more important after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., which allowed states to require sales tax collection based on economic activity rather than just a physical presence.
Specific sales tax rules for Austin
In Austin, Texas, the hotel and motel occupancy tax is 11% of the room rate, while the motor vehicle rental tax is set at 5% of gross rental receipts. For mixed drinks, the state imposes a 6.7% gross receipts tax along with an 8.25% sales tax on mixed beverages, with the city receiving 10.7143% of the total mixed beverage tax collected. Additionally, the state charges a 5% prize fee on bingo winnings exceeding $5, and the city retains 25% of this fee for prizes awarded at bingo games held in Austin.
Services
Some services are taxable and some are exempt
Goods
Most items, such as appliances, vehicles, furniture, sporting goods, and electronics, are subject to sales tax.
Clothing
Taxable
Electronics
Taxable
SaaS
Taxable
Digital Products
Taxable
Software
Pre-packaged software is taxable, custom software may be exempt.
Freight/Shipping
Taxable when included with the sale of taxable items.
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