Texas charges 6.25% state sales tax, plus local taxes that vary by county and city

Texas has a state sales tax of 6.25%, which applies to most goods and some services. On top of that, your city and county can each add their own local sales tax. The total you pay depends on where you buy something, not where you live. A purchase in Austin will have a different rate than the same purchase in Dallas or a rural county, even if you live in the same state.

The combined rate in most Texas cities ranges from 8.0% to 8.25%, but some areas go as high as 8.5% or slightly above. There is no single "Texas sales tax rate" — you need to know your specific location to find the exact number.

Key Takeaways

  • Texas state sales tax is 6.25%, and every county and most cities add local tax on top of it, so your total rate depends on your exact location.
  • You can find your local combined rate on the Texas Comptroller of Public Accounts website by entering your address or ZIP code.
  • Groceries, prescription medications, and some medical equipment are exempt from sales tax in Texas, but restaurant meals and prepared foods are not.
  • Sales tax applies to most goods and an increasing number of services, including some digital services, but the rules vary by what you are buying.

How local taxes stack on top of the state rate

The 6.25% state rate is the floor. Your county can add up to 2%, and your city can add up to 2% more. Some special districts — for transit, economic development, or other purposes — can add another 0.5% or more. This means a single purchase can be taxed by the state, the county, the city, and one or more special districts all at once.

For example, Austin's combined rate is 8.25% (6.25% state + 1.0% county + 1.0% city). San Antonio's is 8.125% (6.25% state + 1.0% county + 0.875% city). A small town in a rural county might be 6.25% + 0.5% county = 6.75%. The variation is real and significant — a $100 purchase costs $8.25 in tax in Austin but only $6.75 in that rural county.

Finding your exact local rate

The Texas Comptroller of Public Accounts maintains a sales tax rate lookup tool on its website at comptroller.texas.gov. You can enter your street address or ZIP code and get the exact combined rate for that location. This is the official source and accounts for all state, county, city, and special district taxes.

If you are buying online and the seller is based in another state, Texas sales tax still applies to the purchase if it is delivered to a Texas address. The seller is responsible for collecting it, though enforcement varies. If you buy from a seller who does not collect Texas tax, you may owe use tax — which is the same rate as sales tax — when you file your state tax return, though most individuals do not report this.

What is and is not taxed in Texas

Groceries and food you cook at home are exempt from sales tax. This includes bread, milk, vegetables, meat, and other items you buy at a grocery store. However, prepared foods — restaurant meals, deli items, hot foods from a grocery store — are taxed. A cold sandwich from a deli counter is usually exempt, but a hot one is taxed.

Prescription medications are exempt, as are some medical devices like diabetic supplies and mobility aids. Over-the-counter medications like cold medicine or pain relievers are taxed. Clothing and shoes are taxed in Texas, unlike some other states. Services like haircuts, repairs, and professional fees are generally not taxed, but some digital services — streaming, software, digital downloads — increasingly are.

Sales tax on specific purchases

Gasoline is taxed at the pump as part of the sale price. The state excise tax on fuel is separate from sales tax and is included in what you see on the pump display. Vehicle purchases are taxed on the full sale price, and the tax is usually collected when you register the vehicle with the Texas Department of Motor Vehicles.

Alcohol is taxed at the sales tax rate, plus it has its own excise taxes that vary by type (beer, wine, spirits). Cigarettes and tobacco products are taxed at the sales tax rate plus a state excise tax. Lottery tickets are not subject to sales tax, but winnings are subject to income tax.

Who collects and where the money goes

The seller — the store, restaurant, or online retailer — collects sales tax at the point of sale and sends it to the state. The state then distributes the revenue: the state keeps its 6.25%, and the local portions go to the county and city where the sale occurred. This is why online sales matter — if you buy from an out-of-state seller, the local tax revenue that would have gone to your city or county is lost.

Businesses file sales tax returns monthly or quarterly, depending on their size and the amount of tax they collect. Large retailers file monthly; smaller businesses may file quarterly. The Texas Comptroller's office oversees collection and enforcement.

Tax-free periods and exemptions

Texas holds a back-to-school sales tax holiday each August, usually for one week. During this period, clothing, shoes, school supplies, and backpacks under certain price limits are sold without sales tax. The exact dates and item limits change each year, so check the Comptroller's website in July for the current year's details.

Certain organizations — nonprofits, religious institutions, and government agencies — can be exempt from paying sales tax on their purchases if they have the proper exemption certificate. Individuals cannot claim a blanket exemption, though specific items like groceries and medications are exempt for everyone.

Frequently Asked Questions

Does Texas have sales tax on groceries?

No, groceries for home preparation are exempt. This includes bread, produce, meat, dairy, and canned goods. However, prepared foods like restaurant meals, hot deli items, and ready-to-eat foods are taxed at the full rate.

What is the sales tax rate in my city?

Use the Texas Comptroller's sales tax rate lookup tool at comptroller.texas.gov. Enter your address or ZIP code to see your exact combined state, county, city, and special district rate. Rates vary significantly by location.

Do I pay sales tax on online purchases from out-of-state sellers?

Yes, sales tax applies to items shipped to a Texas address, regardless of where the seller is located. Large online retailers collect and remit Texas tax. Smaller sellers may not, in which case you technically owe use tax when you file your state return, though this is rarely enforced for individuals.

Is clothing taxed in Texas?

Yes, clothing and shoes are subject to sales tax in Texas. However, during the annual back-to-school holiday in August, certain clothing and school supplies are sold tax-free for one week. Check the Comptroller's website for exact dates and item limits.

What happens if a business does not collect sales tax?

The business is required to remit the tax to the state even if it does not collect it from customers. If a business fails to collect or remit sales tax, the Texas Comptroller can assess penalties and interest. Customers are not liable if a seller fails to collect tax.