The Corpus Christi sales tax rate is 8.25 percent, the maximum allowed under Texas law. That figure combines the 6.25 percent state rate set by Texas Tax Code Section 151.0511State of Texas. Texas Tax Code Section 151.051 – Sales Tax Imposed with 2.0 percent in local taxes that fund city operations, transit, and public safety. The rate is the same whether the address sits in Nueces County or the small slice of Corpus Christi in San Patricio County.
Where the Local 2.0 Percent Goes
Texas caps combined local sales tax at 2.0 percent, and Corpus Christi is at that ceiling. According to the Comptroller’s rate tables, the local portion splits three ways:2Texas Comptroller of Public Accounts. City Sales and Use Tax
- City of Corpus Christi: 1.375 percent, covering general revenue, street maintenance, and economic development.
- Corpus Christi Regional Transportation Authority: 0.5 percent for public transit.
- Crime Control and Prevention District: 0.125 percent for public safety programs.
Each of these was approved by voters and applies uniformly across the city.3Texas Comptroller of Public Accounts. Texas Sales and Use Tax Rates – April 2026
What’s Taxed at 8.25 Percent
Physical Goods
Most tangible personal property is taxable. Electronics, furniture, clothing, building materials, and motor vehicles all qualify unless a specific exemption applies. Texas defines tangible personal property broadly enough to cover computer programs and prepaid calling cards.4State of Texas. Texas Tax Code Section 151.009 – Tangible Personal Property
Services
Texas taxes 17 categories of services. The ones Corpus Christi residents encounter most often:5Texas Comptroller of Public Accounts. Taxable Services
- Amusement services, including movie tickets, concerts, and live performances.
- Cable television, streaming video, telecommunications, and internet. Satellite TV delivered directly to the home is exempt from the local portion but still subject to the 6.25 percent state rate.
- Data processing and credit reporting, with 20 percent of data processing charges exempt.
- Security services, debt collection, and insurance services.
Commercial Repair and Remodeling
Repairs, remodeling, or restoration of a commercial building — office, warehouse, restaurant, retail — is fully taxable on the total charge, labor and materials together, minus any separately stated building permit fees paid on the customer’s behalf.6Texas Comptroller of Public Accounts. Real Property Repair and Remodeling Residential work is different: labor on homes, apartments, condos, and nursing homes is not taxable. Hotels and short-term rentals under 30 days count as nonresidential for this rule.
What’s Exempt
Groceries
Most unprepared food is tax-free. Flour, sugar, bread, milk, eggs, fruits, vegetables, and unprocessed meat all qualify.7Texas Comptroller of Public Accounts. Grocery and Convenience Stores Prepared food is fully taxable, and the definition is wide: hot food, sandwiches (unless sold frozen), food sold with utensils, ready-to-eat deli items, and vending machine purchases.
Drugs and Medical Supplies
Prescription medications, insulin, and over-the-counter drugs labeled with an FDA “Drug Facts” panel are exempt.8State of Texas. Texas Tax Code Section 151.313 – Health Care Supplies Corrective lenses, hearing aids, hypodermic needles, and therapeutic devices also qualify. Cosmetics, toiletries, shampoo, and lotion are taxable even if sold in a pharmacy.
Garage Sales and Occasional Sales
Individuals can sell personal property tax-free within two limits:9Texas Comptroller of Public Accounts. Garage Sales and Occasional Sales
- No more than two taxable items in any rolling 12-month period, regardless of price.
- Personal-use items totaling less than $3,000 in a calendar year.
Cross either threshold and you’re treated as “engaged in business,” which means getting a permit and collecting tax on subsequent sales. The exemption also fails if you bought the items intending to resell them, or if you pay a fee to participate in a flea market or craft show.
Nonprofits and Government
Nonprofits must apply to the Comptroller for exempt status separately from federal 501(c)(3) recognition; federal recognition alone doesn’t qualify a group for the Texas exemption.10Texas Comptroller of Public Accounts. Nonprofit and Exempt Organizations – Purchases and Sales Approved purchases must relate to the exempt purpose, and employees cannot use the exemption for personal items on official trips. Federal and Texas government entities are exempt by law without applying.
The August Sales Tax Holiday
Each August, Texas suspends state and local sales tax on most clothing, footwear, school supplies, and backpacks priced under $100 per item. The 2026 holiday runs Friday, August 7, through midnight Sunday, August 9.11Texas Comptroller of Public Accounts. Sales Tax Holiday The full 8.25 percent is waived, and there’s no cap on how many qualifying items you buy. Backpacks with wheels qualify as long as they can also be worn on the back; luggage, gym bags, and computer bags don’t.12State of Texas. Texas Tax Code Section 151.327 – School Supplies and School Backpacks Before Start of School
Use Tax on Online and Out-of-State Purchases
When a Corpus Christi buyer purchases something and the seller doesn’t collect Texas sales tax, the buyer owes an equivalent 8.25 percent use tax. Texas credits any sales tax paid to another state: a higher rate elsewhere means nothing extra is owed, a lower rate means the difference is due.
Individuals and businesses without a sales tax permit report use tax on Form 01-156, due by the 20th of the month after the item enters Texas.13Texas Comptroller of Public Accounts. Texas Use Tax Return If the 20th falls on a weekend or holiday, the deadline shifts to the next business day.
Getting a Sales Tax Permit
Any business selling taxable goods or services in Corpus Christi needs a Texas Sales and Use Tax Permit before making its first sale. The permit is free, and the fastest route is the Comptroller’s online application through eSystems.14Texas Comptroller of Public Accounts. Texas Online Tax Registration Application You’ll need:
- Social Security number for sole owners, or FEIN for partnerships and corporations.
- A NAICS code for your business activity.
- Your physical business address, which determines the local jurisdictions that apply.
Sole owners without a Social Security number cannot use the online system and must submit paper Form AP-201 by email or fax. The Comptroller assigns your filing frequency — monthly, quarterly, or annually — by letter after approval.
Filing, Discounts, and Penalties
Returns are filed through the Comptroller’s Webfile system, accessed through eSystems.15Texas Comptroller of Public Accounts. File and Pay You can file early and schedule the electronic payment for a later date. Quarterly returns are due April 20, July 20, October 20, and January 20. Monthly filers follow the same 20th-of-the-month pattern. The Comptroller sets your frequency based on collection volume.16Texas Comptroller of Public Accounts. Sales and Use Tax
File and pay on time and you keep a 0.5 percent discount on tax due. Miss the deadline and you owe a flat $50 penalty per late report, plus 7.75 percent annual interest starting 61 days after the due date.17Texas Comptroller of Public Accounts. Interest Owed and Earned
Overpaid or reported incorrectly? File Form 00-957 to claim a refund. The window is generally four years from the date the tax was originally due, though that can be extended if the Comptroller opens an audit and both parties sign an agreement.18Texas Comptroller of Public Accounts. Sales Tax Refunds The clock only stops once all refund claim requirements are met, so incomplete filings don’t preserve your deadline.
Keep all sales and use tax records for at least four years. Destroying them earlier requires written authorization from the Comptroller, and inadequate records can lead to estimated assessments or a suspended permit.19Texas Comptroller of Public Accounts. Texas Sales and Use Tax Frequently Asked Questions
Rules That Catch Sellers Off Guard
Where Local Tax Is Sourced
Local tax doesn’t automatically follow the buyer’s address. Texas uses a hybrid sourcing rule: when an order is fulfilled from a seller’s place of business, the seller’s local rate applies regardless of where the buyer is. When orders aren’t fulfilled from a place of business and aren’t taken by sales personnel, the destination’s local rate applies. A seller shipping into an area with a higher combined local rate must collect the additional local use tax to make up the difference.20Texas Comptroller of Public Accounts. Local Sales and Use Tax Collection – A Guide for Sellers
Remote Sellers and Marketplaces
Out-of-state sellers with no Texas physical presence must collect and remit tax once total Texas revenue exceeds $500,000 in the preceding 12 calendar months. That threshold counts marketplace sales, wholesale, and exempt sales.21Texas Comptroller of Public Accounts. Marketplace Providers and Marketplace Sellers Certified marketplace providers such as Amazon and Etsy collect and remit on behalf of sellers who use the platform, and sellers who work exclusively through such a marketplace don’t need a Texas permit — though four years of sales records are still required. Texas-based sellers need their own permit and must file returns even when every sale runs through a marketplace.
Buying an Existing Business
Successor liability is the trap here. If a previous owner has unpaid sales tax debts, the buyer can be held responsible up to the full purchase price, including assumed debts.22Texas Comptroller of Public Accounts. Buying an Existing Business Before closing, buyer and seller jointly submit Form 86-114 to request a Certificate of No Tax Due. If no audit is needed, the certificate usually arrives within 10 business days; an audit can push that to 90 days. Without the certificate, the buyer is personally on the hook for the seller’s unpaid tax.