1. What is Houston Sales Tax?

Houston, Texas has a combined sales tax rate of 8.25%, which includes 6.25% Texas state sales tax, 1% Harris County sales tax, and 1% Metropolitan Transit Authority (MTA) sales tax.

2. How Does the Calculator Work?

The calculator uses the Houston sales tax equation:

Where:

• \( Amount \) — Purchase amount before tax (USD)
• \( 0.0825 \) — Houston's combined sales tax rate (8.25%)

3. Importance of Sales Tax Calculation

Details: Accurate sales tax calculation is important for budgeting, financial planning, and ensuring proper tax collection for businesses operating in Houston.

4. Using the Calculator

Tips: Enter the purchase amount in USD (without tax). The calculator will compute the 8.25% tax that would be added in Houston.

5. Frequently Asked Questions (FAQ)

Q1: Is the sales tax rate the same throughout Houston?
A: Yes, the 8.25% rate applies throughout Houston and most of Harris County.

Q2: Are all items taxed at 8.25% in Houston?
A: No, some items like groceries and prescription drugs are exempt from sales tax.

Q3: How does Houston's tax compare to other Texas cities?
A: Houston's 8.25% is the maximum allowed by Texas law. Some cities have slightly lower rates.

Q4: When was the current tax rate established?
A: The current rate has been in effect since October 1, 1999.

Q5: Is there a difference between sales and use tax?
A: The rate is the same, but use tax applies to items purchased outside Houston but used within the city.