This calculator helps estimate your Texas state sales tax liability and property tax bill. Please note that Texas has no state income tax, but relies on sales tax and property tax as its primary revenue sources. This calculator is for estimation purposes only and does not constitute tax advice.
Understanding Texas Taxes: Sales Tax and Property Tax
Texas is unique among U.S. states for not levying a state income tax on individuals. Instead, its tax system relies heavily on two primary revenue streams: sales tax and property tax. This calculator provides an estimation of these two significant tax burdens for Texas residents.
Texas State Sales Tax
The state sales tax rate in Texas is currently 6.25%. However, local taxing jurisdictions (cities, counties, special districts) are permitted to add their own local sales taxes, bringing the maximum combined sales tax rate to 8.25% in many areas. Some exemptions may apply to certain goods and services, and specific rules govern the taxation of tangible personal property and certain services.
How it's calculated:
Total Sales Tax = (Purchase Price * State Sales Tax Rate) + (Purchase Price * Local Sales Tax Rate)
Or, more commonly expressed as: Total Sales Tax = Purchase Price * (Total Sales Tax Rate as a decimal)
Where Total Sales Tax Rate = (State Sales Tax Rate + Local Sales Tax Rate) / 100.
For example, on a $100 purchase with a 6.25% state rate and a 2% local rate, the total sales tax would be $100 * (0.0625 + 0.02) = $8.25.
Texas Property Tax
Property taxes in Texas are administered at the local level, not by the state. Taxes are levied by independent taxing units such as counties, cities, school districts, and special districts (e.g., hospital districts, utility districts). The rates vary significantly by location. The appraised value of your property is determined by local appraisal districts. The property tax bill is calculated by multiplying the appraised value (or taxable value, which may be lower due to exemptions) by the combined tax rate of all taxing entities that cover your property.
How it's calculated:
Property Tax Bill = Property Appraised Value * (Average Property Tax Rate as a decimal)
Where Average Property Tax Rate = The sum of all applicable local tax rates, divided by 100.
It's important to note that homeowners may qualify for various exemptions (homestead, over-65, disabled veteran) that can reduce the taxable value of their property, thus lowering their tax bill. This calculator uses the total appraised value for simplicity.
Disclaimer
This calculator is a simplified tool. Actual tax liabilities can be affected by numerous factors, including specific local ordinances, tax exemptions, the type of property, and the tax jurisdiction. For precise tax calculations and advice, consult with a qualified tax professional or your local appraisal district.
function calculateTexasTaxes() {
var purchasePrice = parseFloat(document.getElementById('purchasePrice').value);
var stateSalesTaxRate = parseFloat(document.getElementById('stateSalesTaxRate').value);
var localSalesTaxRate = parseFloat(document.getElementById('localSalesTaxRate').value);
var propertyAppraisedValue = parseFloat(document.getElementById('propertyAppraisedValue').value);
var averagePropertyTaxRate = parseFloat(document.getElementById('averagePropertyTaxRate').value);
var resultDiv = document.getElementById('result');
resultDiv.innerHTML = "; // Clear previous results
var salesTaxAmount = 0;
var propertyTaxAmount = 0;
var totalTaxAmount = 0;
if (isNaN(purchasePrice) || purchasePrice < 0) {
resultDiv.innerHTML = 'Please enter a valid Purchase Price.';
return;
}
if (isNaN(stateSalesTaxRate) || stateSalesTaxRate < 0) {
resultDiv.innerHTML = 'Please enter a valid State Sales Tax Rate.';
return;
}
if (isNaN(localSalesTaxRate) || localSalesTaxRate < 0) {
resultDiv.innerHTML = 'Please enter a valid Local Sales Tax Rate.';
return;
}
if (isNaN(propertyAppraisedValue) || propertyAppraisedValue < 0) {
resultDiv.innerHTML = 'Please enter a valid Property Appraised Value.';
return;
}
if (isNaN(averagePropertyTaxRate) || averagePropertyTaxRate < 0) {
resultDiv.innerHTML = 'Please enter a valid Average Property Tax Rate.';
return;
}
var totalSalesRateDecimal = (stateSalesTaxRate + localSalesTaxRate) / 100;
var propertyTaxRateDecimal = averagePropertyTaxRate / 100;
salesTaxAmount = purchasePrice * totalSalesRateDecimal;
propertyTaxAmount = propertyAppraisedValue * propertyTaxRateDecimal;
totalTaxAmount = salesTaxAmount + propertyTaxAmount;
var formattedSalesTax = salesTaxAmount.toLocaleString(undefined, { style: 'currency', currency: 'USD' });
var formattedPropertyTax = propertyTaxAmount.toLocaleString(undefined, { style: 'currency', currency: 'USD' });
var formattedTotalTax = totalTaxAmount.toLocaleString(undefined, { style: 'currency', currency: 'USD' });
resultDiv.innerHTML =
'Estimated Sales Tax: ' + formattedSalesTax + '' +
'Estimated Property Tax: ' + formattedPropertyTax + '' +
'Total Estimated Taxes: ' + formattedTotalTax + '';
}