Credit card processing and merchant services in El Paso, TX
El Paso's 8.25% sales tax includes a 0.5% El Paso County share, which Houston, Dallas, Austin, San Antonio and Fort Worth don't have. Texas also bans debit card surcharges outright.
El Paso reaches the Texas maximum of 8.25% by a different route than the other big Texas cities we cover. The Comptroller's city rate table shows 1% for the City of El Paso, 0.5% for El Paso County and 0.5% for the El Paso CTD transit tax, on top of the 6.25% state rate. Houston, Dallas, Austin, San Antonio and Fort Worth have no county sales tax in their totals. El Paso does.
That matters when you expand. The Comptroller's transit tax list shows the CTD tax in effect since April 1, 1988, with El Paso as its only participating area. A second store elsewhere in El Paso County won't carry it and may sit under a different city rate, so look up each address before you copy tax settings from one store to the next.
The Census Bureau estimated El Paso's population at 683,012 in July 2025. Whatever you sell them, card fees are where Texas gets complicated. The credit card surcharge ban is still in the statute, a 2018 federal ruling protected only merchants who surcharged at or below their swipe fees, and debit card surcharges are banned outright. Our Texas page walks through all of it.
The statute's definition of a surcharge leaves out a discount for paying cash, so a genuine cash discount is the safer way to reflect card costs in your prices. Our cash discount guide covers how to post one. Paying less for acceptance works too: interchange-plus pricing passes interchange through at cost, and a free statement review shows how your current rate compares.
Payment services we provide
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Common questions
What makes up El Paso's 8.25% sales tax?
The 6.25% Texas rate plus 2% local: 1% for the City of El Paso, 0.5% for El Paso County and 0.5% for the El Paso CTD transit tax, according to the Comptroller's city rate table. The CTD tax has applied since April 1, 1988, and El Paso is its only participating area.
Will a second store elsewhere in El Paso County use the same rate?
Not necessarily. The CTD transit tax applies in El Paso only, and each city has its own rate, so a location in another part of the county can have a different local mix. Look up the exact address with the Comptroller before you copy your tax settings over.
How does a cash discount work at an El Paso register?
You post your regular price and take a discount off when a customer pays cash. Say an item is $40 and you give 3% off for cash: the cash customer pays $38.80 before tax and the card customer pays $40. The Texas statute's definition of a surcharge excludes a discounted price for cash buyers. Our cash discount guide covers signs and setup.
Can an El Paso business add a fee for debit cards?
No. Section 604A.002 of the Business and Commerce Code bans surcharges on debit and stored value cards, and Visa and Mastercard prohibit them too. If an El Paso business knowingly violates the ban, the civil penalty can reach $500 per violation, once the business has had a notice and 30 days to comply.
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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