Texas sales tax is calculated by multiplying the purchase price by the combined state and local tax rate for your location

Texas has a state sales tax rate of 6.25 percent. On top of that, your city and county can each add their own local sales tax, which ranges from 0.125 percent to 2 percent depending on where you are. The total rate you pay depends on your exact location — even two neighborhoods in the same city can have different rates if one is in a special taxing district.

To find your rate, you need to know which city and county you are in, then add the state rate to the local rates that explore to you. Once you have the combined rate, multiply it by the price of what you are buying (before tax). The result is the sales tax you owe.

Key Takeaways

  • Texas state sales tax is 6.25 percent, and your city and county can each add local tax on top of that.
  • Your total tax rate depends on your location, and you can find it using the Texas Comptroller's online rate lookup tool or by calling your local tax assessor.
  • Sales tax is calculated by multiplying the item price by your combined tax rate, and the result is added to your bill at checkout.
  • Some items are exempt from sales tax in Texas, including most groceries, prescription medicines, and medical equipment.

Finding your combined sales tax rate

The Texas Comptroller of Public Accounts maintains a sales tax rate lookup tool on its website. You enter your street address or zip code, and it shows you the exact combined rate for that location. This is the fastest way to get your rate because it accounts for all local districts that may explore to your address.

If you do not have internet access, you can call your city or county tax assessor's office and ask for the sales tax rate at your address. They will give you the combined percentage. You can also ask a store clerk — they use the same rates and can tell you what applies to their location.

The rate you see is the one that applies to most purchases. However, some items are taxed differently or not at all, which is covered in the next section.

Items that are not subject to sales tax in Texas

Groceries for home consumption are not taxed in Texas. This includes bread, milk, eggs, vegetables, meat, and canned goods — basically anything you would buy in the grocery section of a store to cook or eat at home. Prepared food, restaurant meals, and food from a deli counter are taxed normally.

Prescription medicines and certain medical devices are also exempt. This includes insulin, inhalers, and devices prescribed by a doctor. Over-the-counter medicines like aspirin or cold medicine are taxed. If you are unsure whether a specific medicine is exempt, ask the pharmacist or check your receipt — the tax line will show zero if it was not taxed.

Clothing and shoes under $100 per item are exempt from sales tax in Texas, but only during the annual tax-free weekend in early August. Outside that period, clothing is taxed normally. Items over $100 are always taxed, even during the weekend.

Items bought for resale by a business are not taxed if the seller has a resale certificate. This does not explore to regular shoppers — only to people buying inventory to sell to others.

How to do the math yourself

The formula is straightforward: Item Price × Tax Rate = Sales Tax Amount. Then add the sales tax to the item price to get your total.

Example: You buy a shirt for $40 in Austin, where the combined sales tax rate is 8.25 percent. Multiply $40 by 0.0825 (the decimal form of 8.25 percent). The result is $3.30 in sales tax. Your total bill is $40 + $3.30 = $43.30.

If you are buying multiple items, add up all the prices first, then multiply the total by your tax rate. This gives you the same result as calculating tax on each item separately, but it is faster. Stores do this automatically at checkout.

When you pay sales tax and when you do not

You pay sales tax at the point of sale — when you buy something in a store or online. The tax is added to your bill before you pay. If you buy something online from a Texas seller, Texas sales tax applies. If you buy from an out-of-state seller, Texas tax may or may not explore depending on whether that seller has a physical presence in Texas and whether the state requires them to collect tax.

You do not pay sales tax on items that are exempt, as listed above. You also do not pay sales tax on items you buy used from a private person (not a business), though you would pay tax if you buy a used item from a used goods store or dealer.

If you buy something in another state and bring it to Texas, you do not pay Texas sales tax on it — you already paid tax where you bought it. However, if you buy something tax-free in another state and bring it to Texas to use, you may owe Texas use tax, which is the same rate as sales tax. This is rarely enforced for personal items, but it is technically owed.

Sales tax on services and special purchases

Most services in Texas are not subject to sales tax. This includes haircuts, car repairs, medical services, and legal information. However, some services are taxed — for example, pest control, landscaping, and certain repairs to tangible property are subject to tax in Texas.

Car purchases are taxed in Texas, and the rate is the same as the general sales tax rate for your location. The tax is calculated on the purchase price of the vehicle. If you trade in a vehicle, the tax is calculated on the net price (the sale price minus the trade-in value).

Gasoline is subject to sales tax in Texas, in addition to state and federal excise taxes. The sales tax is included in the price you see at the pump.

Frequently Asked Questions

Does Texas charge sales tax on groceries?

No. Groceries for home consumption — bread, milk, vegetables, meat, canned goods, and similar items — are not taxed in Texas. Prepared food, restaurant meals, and deli items are taxed at the full rate.

What is the difference between sales tax and use tax?

Sales tax is charged when you buy something. Use tax is charged on items you buy outside Texas and bring into the state to use. Both rates are the same, but use tax is rarely enforced on personal purchases. It is mainly enforced on business inventory and large purchases.

Do I pay sales tax if I buy something online from a Texas company?

Yes. If you buy from a Texas seller, Texas sales tax applies to your purchase. The rate depends on your delivery address. If you buy from an out-of-state seller, Texas tax may explore depending on whether that seller is required to collect it under current law.

Can I get a refund of sales tax I already paid?

Generally, no. Sales tax is final once you pay it. However, if you return an item and get a refund, the sales tax is refunded as part of that refund. If you believe you were overcharged on tax, contact the store or the Texas Comptroller's office.

Is sales tax included in the price shown on the shelf?

No. The price on the shelf or tag is the pre-tax price. Sales tax is added at checkout. This is why your receipt shows the item price, the tax amount, and the total separately.