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Why is tax in Texas lower than expected?

Overview

I'm expecting a rate of 8.5 and I'm only seeing 6.5 in Texas.

Environment

Avalara Avatax

Resolution

If you only see the state rate calculating in Texas chances are you have no local nexus turned on. Local nexus for cities and counties etc will need to be turned on for your composite rate calculated to reflect those on top of the state rate.

 

To check your nexus:

  • Log into the admin console
  • Click Organization>the blue letter J underneath the word Nexus Jurisdictions
  • Click United states
  • Click the blue button to the far right of Texas
  • Turn on any locals you would like or select them all, the choice is yours

 

 

 

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