Understanding sales tax in Houston, Texas, doesn’t have to be complicated. Whether you’re a local business or selling remotely to Houston customers, knowing when and how to collect sales tax can save you from costly penalties and confusion.
At Pumpkin Tax Co., we’re here to help you stay fully compliant with state and local sales tax regulations — without the stress.
🚨 What is the Sales Tax Rate in Houston, TX?
If you’re selling to customers in Houston, the combined sales tax rate is 8.25%, which is made up of:
- Texas State Tax: 6.25%
- Harris County Tax: 0%
- City of Houston Tax: 1%
- Special District Tax: 1%
That’s a total of 8.25% for most goods and services sold in Houston.
🏙️ Harris County vs. Houston City Sales Tax — What’s the Difference?
Harris County itself does not charge any additional sales tax. However, the City of Houston and local districts within it may charge up to 2% in combined city and special district taxes.
So, even if you’re selling within Harris County, the exact rate depends on the city or area your buyer is located in. That’s why it’s important to track where your sales are going — something Pumpkin Tax Co. can help automate!
📍 Sales Tax Rates by ZIP Code in Houston
Here are sales tax rates for some of the most populated ZIP codes in Houston:
| ZIP Code | State | County | City | Special | Total |
| 77001 | 6.25% | 0% | 1% | 1% | 8.25% |
| 77002 | 6.25% | 0% | 1% | 1% | 8.25% |
| 77003–77010 | Same across all – 8.25% total |
Pumpkin’s advanced tools make it easy to apply the right rate based on ZIP code every time.
🛍️ What’s Taxable in Houston?
Most tangible personal property and some services are subject to sales tax in Houston. Here are common taxable categories:
| Item | Description | TIC Code |
| Clothing | General apparel | 10010 |
| Electronics | Consumer gadgets | 20020 |
| Furniture | Home furnishings | 30030 |
| Prepared Foods | Restaurant meals | 40040 |
| Toys | Children’s toys | 50050 |
Pumpkin recommends assigning Tax Information Codes (TICs) to your inventory for accurate taxation.
✅ What’s Exempt from Sales Tax?
Not everything is taxed. Here are some sales tax-exempt items in Houston:
| Item | Description | TIC Code |
| Prescription Drugs | Medical medications | 60060 |
| Educational Items | School books | 70070 |
| Grocery Staples | Unprepared foods | 80080 |
| Medical Equipment | Health devices | 90090 |
Pumpkin’s software helps ensure you never charge tax on exempt items by mistake.
💼 Who Needs to Collect Sales Tax in Houston?
You must collect Houston sales tax if your business meets either of these two conditions:
1. Physical Nexus
If you have a storefront, office, warehouse, employees, or inventory in Texas — that counts as a physical presence.
2. Economic Nexus
If you make over $500,000 in sales to Texas residents in a calendar year, even without a physical location, you are required to collect and remit Texas sales tax.
📝 How to Register for a Texas Sales Tax Permit
Registering is free and easy via the Texas Comptroller’s Website. You’ll need to:
- Provide your business info
- Identify your business structure
- Answer a few questions about your sales
- Receive your Texas Sales and Use Tax Permit
Pumpkin’s team can walk you through the process if you need help.
💵 How to Collect the Right Amount of Sales Tax
Here’s how to stay accurate with your tax collection in Houston:
- ✅ Use automated tax software like Pumpkin’s platform to apply the correct rate
- ✅ Check the latest tax rules via the Texas Comptroller’s site
- ✅ Assign TICs to all your products and services
📬 How to File and Remit Sales Tax in Texas
If you’re registered in Texas, you’ll file a single state sales tax return. The Texas Comptroller’s Office will handle distribution of funds to the correct cities and districts.
Pro tip: Filing frequency (monthly, quarterly, annually) depends on your sales volume. Pumpkin’s software keeps track and reminds you when to file — or we can file for you!
🧠 Extra Tax Scenarios You Should Know
| Seller Type | State | City | Special | County |
| Non-Nexus Seller (Use Tax) | 6.25% | 1% | 1% | 0% |
| Out-of-State Seller | 6.25% | 1% | 1% | 0% |
| Marketplace Facilitator | 6.25% | 1% | 1% | 0% |
Even if you don’t have nexus, customers may still owe use tax — and marketplaces may need to collect it on your behalf.
🎯 Why Choose Pumpkin Tax Co. for Sales Tax?
With thousands of tax jurisdictions, ever-changing rates, and strict compliance laws, managing sales tax manually is a risk you don’t need to take.
Pumpkin Tax Co. offers:
- 💻 Automated sales tax calculation
- 📦 Nexus tracking for every state
- 📊 Detailed reports and reminders
- 📥 Hassle-free tax filing services
- 🧑💼 Expert support for audits or questions
🚀 Get Sales Tax Confident with Pumpkin
Don’t wait until tax time to get organized. Let Pumpkin Tax Co. help you stay compliant, confident, and focused on growing your business in Houston and beyond.
👉 Ready to automate your sales tax management?
Contact Pumpkin Tax Co. today!