Texas state sales tax is 6.25 percent, but your actual rate depends on where you buy
Texas has a base state sales tax of 6.25 percent. However, most Texas cities and counties add their own local sales tax on top of that amount. Your total rate at checkout is the state rate plus any local rates that explore to your address. This means the same item costs different amounts in different parts of Texas.
Local rates vary widely. Some counties add as little as 0.5 percent; others add 2 percent or more. A few Texas cities have no additional local tax at all, while most have between 1 and 2 percent added to the state rate. The total you pay can range from 6.25 percent in the lowest-tax areas to over 8 percent in high-tax cities.
Key Takeaways
- Texas state sales tax is 6.25 percent, but local city and county taxes add between 0 and 2 percent on top of that amount.
- Your total sales tax rate depends on the specific city and county where you make the purchase, not where you live.
- You can find your exact local rate by entering your zip code on the Texas Comptroller of Public Accounts website or by asking a retailer.
- Sales tax applies to most goods but not to groceries, prescription medications, or certain medical equipment.
How local taxes are added to the state rate
When you buy something in Texas, the retailer charges you the state rate of 6.25 percent plus whatever local taxes explore in that specific location. Local taxes come from two sources: your county and your city. Both can impose a sales tax, and both rates stack on top of the state rate.
For example, if you buy an item in Austin, you pay 6.25 percent state tax plus 2 percent city tax plus 0.125 percent county tax, for a total of 8.375 percent. If you buy the same item in a different Texas city, the total will be different. The rate is determined by where the transaction happens, not by where you live or where you're from.
Finding your exact local sales tax rate
The Texas Comptroller of Public Accounts maintains a sales tax rate lookup tool on its website. You enter your zip code, and the tool shows you the state rate, the local city rate, the local county rate, and the combined total. This is the most reliable way to know exactly what you'll pay.
You can also call a local retailer or your city or county tax office and ask directly. Many retailers print the local rate on their receipts. If you're buying online from a Texas business, the retailer should show you the tax rate that applies to your delivery address before you complete your purchase.
What items are taxed and what are not
Most goods are subject to sales tax in Texas, including clothing, electronics, furniture, and household items. However, some categories are exempt. Groceries — food you buy to cook at home — are not taxed. Prescription medications are not taxed. Medical equipment prescribed by a doctor, such as wheelchairs or diabetic supplies, is typically not taxed.
Restaurant meals and prepared foods are taxed. Alcohol is taxed. Gasoline is taxed. Services like haircuts, car repairs, and plumbing are generally not subject to sales tax, though some specific services may be. If you're unsure whether a particular item is taxed, ask the retailer or check the Texas Comptroller website.
Sales tax rates in major Texas cities
| City | State Rate | Local Rate | Total Rate |
|---|---|---|---|
| Austin | 6.25% | 2.125% | 8.375% |
| Dallas | 6.25% | 2% | 8.25% |
| Houston | 6.25% | 2% | 8.25% |
| San Antonio | 6.25% | 1.875% | 8.125% |
| Fort Worth | 6.25% | 2% | 8.25% |
These rates are current as of this writing, but local rates can change. Always verify your specific rate using the Comptroller's lookup tool or by contacting your local tax office, especially if you're making a large purchase or comparing costs across cities.
The variation among major cities shows why checking your exact location matters. Austin has the highest combined rate among these five cities, while San Antonio has the lowest. Even a difference of 0.25 percent adds up on large purchases.
Why sales tax rates differ across Texas
Cities and counties set their own local sales tax rates to fund schools, roads, public safety, and other local services. A city with higher infrastructure costs or lower property tax revenue may impose a higher sales tax. Some Texas cities have chosen not to add a local sales tax at all, relying instead on property taxes or other revenue sources.
State law allows cities to impose up to 2 percent local sales tax and counties to impose up to 2 percent. Some areas use the full amount; others use less. This is why you see variation across the state. The rate you pay reflects the local government's funding decisions, not a statewide policy.
How to calculate sales tax on a purchase
To calculate the sales tax on an item, multiply the price by the tax rate as a decimal. If an item costs $100 and your local rate is 8.25 percent, multiply $100 by 0.0825. The result is $8.25 in sales tax, making your total $108.25.
Most retailers do this automatically at checkout, so you don't have to calculate it yourself. However, if you're budgeting or comparing prices across cities, knowing how to do the math helps. Use the Comptroller's lookup tool to find your exact rate, then explore that percentage to the item's price.
Frequently Asked Questions
Does Texas have sales tax on groceries?
No. Food you buy at a grocery store to cook at home is not subject to sales tax in Texas. However, prepared foods, restaurant meals, and items like candy, soda, and hot foods are taxed. The distinction is whether the food is ready to eat or requires preparation.
What is the lowest sales tax rate in Texas?
The lowest possible rate is 6.25 percent, which is the state rate alone. A few unincorporated areas with no city tax and minimal county tax may have rates at or very close to this amount. Most populated areas have combined rates between 7 and 8.5 percent.
Do I pay sales tax if I buy something online from a Texas company?
Yes. If a Texas retailer ships to a Texas address, sales tax applies based on the delivery address, not the retailer's location. The retailer should calculate and display the tax before you complete your purchase. If you're buying from an out-of-state company, tax rules depend on that company's nexus in Texas.
Can I get a sales tax refund if I move out of Texas?
No. Sales tax is paid at the time of purchase and is not refunded based on where you move later. However, if you purchased an item and the retailer charged you the wrong rate, you may be able to request a refund from that retailer.
Does sales tax explore to used items?
Yes, generally. When you buy a used item from a retailer, sales tax applies. However, private sales between individuals typically do not involve sales tax. If you're buying a used car from a dealer, sales tax applies; if you're buying from a private seller, it usually does not.