Yes, Texas has a sales tax, and it applies to most purchases
Texas charges a state sales tax of 6.25 percent on most goods and some services. On top of that, your city or county may add a local sales tax of up to 2 percent, bringing your total to as high as 8.25 percent depending on where you shop. The tax is added at the register — it is not included in the price tag you see on the shelf.
Texas does not have a state income tax, which is why the state relies on sales tax to fund schools, roads, and other services. This means the sales tax rate matters more to your budget in Texas than it does in states with income tax.
Key Takeaways
- Texas state sales tax is 6.25 percent, but your actual rate depends on your city and county, which can add up to 2 percent more.
- Sales tax is charged on most physical goods, groceries, and some services like repairs and haircuts, but not on others like medical care or legal advice.
- The tax you pay at checkout varies by location — a purchase in Austin will have a different rate than the same purchase in Houston.
- Tax-exempt purchases like prescription medications and certain medical equipment do not have sales tax added, but you may need to show proof at the register.
What the 6.25 percent state rate covers
The 6.25 percent is the baseline that applies everywhere in Texas. This rate funds the state general revenue fund and goes to education, transportation, and other state programs. Every purchase subject to sales tax in Texas starts with this 6.25 percent added to the price.
The state rate does not change based on what you buy or where you live — it is the same in El Paso as it is in Beaumont. What changes is what gets added on top of it.
Local sales tax rates vary by city and county
Cities and counties in Texas can add their own sales tax on top of the state rate. These local rates range from 0 to 2 percent, and they are not uniform across the state. A city in one county might charge 1 percent while a neighboring city in a different county charges 1.5 percent or nothing at all.
The combined rate you pay depends on where the transaction happens. If you buy something in San Antonio, you pay the San Antonio rate. If you cross into a neighboring city, the rate changes. This is why the same item costs different amounts in sales tax depending on which store you visit, even if the stores are only a few miles apart.
You can find your local rate by entering your address or zip code into the Texas Comptroller of Public Accounts sales tax rate lookup tool on their website. The tool shows you the exact rate for your location.
What items are taxed and what are not
Most physical goods are taxed: clothing, electronics, furniture, toys, and household items all have sales tax added. Groceries sold at a supermarket are also taxed, though some prepared foods and restaurant meals are taxed at a higher rate or differently depending on how they are sold.
Services are taxed selectively. A haircut, car repair, or appliance repair has sales tax added. Dry cleaning, pest control, and landscaping services are taxed. However, medical services, dental work, legal advice, and accounting services are not taxed.
Prescription medications and certain medical equipment like wheelchairs and prosthetics are not taxed. Over-the-counter medications like pain relievers and cold medicine are taxed as regular goods. Durable medical equipment prescribed by a doctor may be tax-exempt, but you usually need to provide a prescription or doctor's letter at the register.
How sales tax is collected and paid
The retailer collects the sales tax from you at the point of sale and holds it temporarily. The business then sends the tax revenue to the Texas Comptroller of Public Accounts on a regular schedule — usually monthly, though some businesses report quarterly or annually depending on their size and sales volume.
You do not file sales tax yourself as a consumer. The retailer handles all the paperwork and payment to the state and local tax authorities. Your receipt shows the amount of tax collected, but you do not owe anything beyond what is charged at checkout.
Tax-exempt purchases and who qualifies
Certain organizations and individuals can make purchases without paying sales tax. Nonprofits registered with the state, schools, and government agencies can buy items tax-free if they provide a tax-exempt certificate to the seller. Religious organizations may also may have access to for exemptions on certain purchases.
Resellers — businesses that buy goods to resell them — do not pay sales tax on their wholesale purchases. They provide a resale certificate to their supplier instead, and then collect sales tax from their own customers.
If you think you may have access to for a tax exemption, you need to register with the Texas Comptroller and obtain a certificate before you shop. Simply telling a cashier you are tax-exempt does not work — you must show documentation.
Frequently Asked Questions
What is the highest sales tax rate I could pay in Texas?
The highest combined rate is 8.25 percent: the 6.25 percent state rate plus the maximum 2 percent local rate. Not all cities and counties add the full 2 percent, so your actual rate depends on your location. Use the Texas Comptroller's rate lookup tool to find your exact rate.
Do I pay sales tax on groceries?
Yes, groceries purchased at a supermarket are subject to sales tax in Texas. However, some prepared foods, hot foods, and items bought at restaurants or delis may be taxed differently or at a higher rate. The distinction depends on whether the food is ready to eat.
Is sales tax included in the price shown on the shelf?
No. The price tag shows the pre-tax price. Sales tax is added at checkout and appears on your receipt as a separate line item. This is why your total bill is higher than the price tag you saw.
Can I get a refund of sales tax I already paid?
Generally, no. Sales tax is final once the transaction is complete. If you return an item and get a refund, the sales tax is refunded as part of that refund. If you overpaid due to an error, you would need to contact the retailer, not the state.
Do online purchases from Texas retailers have sales tax?
Yes. Texas requires online retailers to collect and remit sales tax on purchases shipped to Texas addresses, regardless of where the retailer is located. The rate applied is based on the delivery address, not where the business operates.