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 services. When you buy something at a store, online, or from a service provider, that tax gets added to your bill. On top of the state rate, most Texas cities and counties add their own local sales tax — typically between 1 and 2 percent — so your total rate usually falls between 7.25 and 8.25 percent depending on where you live.
The tax applies at the point of sale. If you buy a $100 item in a place with an 8 percent combined rate, you pay $108. The seller collects the tax and sends it to the state and local tax authorities each month.
Key Takeaways
- Texas state sales tax is 6.25 percent, and your city or county adds 1 to 2 percent on top, making your total rate between 7.25 and 8.25 percent.
- Groceries, prescription medications, and medical devices are exempt from sales tax in Texas.
- Clothing and shoes under $100 per item are exempt from sales tax during the annual tax-free weekend in August.
- Services like haircuts, repairs, and labor are generally subject to sales tax unless they fall into a specific exemption category.
- Online purchases are taxed the same way as in-store purchases if the seller has a physical presence in Texas or meets certain sales thresholds.
What is exempt from Texas sales tax
Several categories of items and services do not have sales tax applied in Texas. Groceries — food you cook at home — are exempt. This includes bread, milk, eggs, vegetables, meat, and canned goods. Hot food, prepared meals, and food eaten at a restaurant are taxed.
Prescription medications and certain medical devices are exempt. Over-the-counter drugs like aspirin or cold medicine are taxed, but a prescription filled at a pharmacy is not. Diabetic supplies, hearing aids, and prosthetics are also exempt.
Clothing and shoes are exempt during Texas's annual tax-free weekend, which runs for nine days in August. Items must be under $100 per piece to may have access to. A $120 pair of shoes does not may have access to, but a $80 pair does.
Some services are exempt too. Religious organizations do not pay sales tax on purchases made for religious purposes. Certain agricultural equipment and livestock feed used in farming are exempt.
Services that are taxed in Texas
Most services are subject to sales tax in Texas, even though many people assume they are not. A haircut, car repair, plumbing work, and house cleaning all have sales tax added. The tax applies to the labor charge, not just materials.
Repair services on tangible items — fixing a phone, repairing shoes, servicing a car — are taxed. If you pay $200 for a car repair in a place with 8 percent sales tax, you owe $216. The same applies to installation services: if a contractor installs new flooring, the labor is taxed.
Professional services like accounting, legal advice, and consulting are generally not taxed. The line between a taxed service and an exempt professional service can be unclear, so if you are unsure whether a specific service is taxed, ask the provider before you pay.
How local sales tax rates vary across Texas
Texas has 254 counties, and each one sets its own local sales tax rate on top of the state rate. The state portion is always 6.25 percent, but local rates range from 1 to 2 percent depending on where you are.
Some cities add an additional rate on top of the county rate. A purchase in Houston (Harris County) may be taxed at a different rate than a purchase in Dallas (Dallas County). To find your exact rate, enter your zip code into the Texas Comptroller's sales tax rate lookup tool on the state website, or ask a cashier at a local store.
If you buy something online from a seller based outside Texas, you may not see Texas sales tax added at checkout. However, if the seller has a warehouse, office, or other physical location in Texas, or if they sell more than a certain dollar amount to Texas residents in a year, they are required to collect and send Texas sales tax. Many large online retailers now collect Texas sales tax on all orders shipped to the state.
Tax-free weekend and other exemption periods
Texas holds a tax-free weekend each August, usually the first full weekend of the month. During this nine-day period, clothing and shoes under $100 per item are sold without sales tax. School supplies under $100 — like notebooks, pens, and backpacks — are also exempt during this time.
The exemption applies only to the items listed and only during the designated dates. A $150 pair of jeans is not exempt because it exceeds the $100 limit. A $50 pair of jeans is exempt. Once the tax-free weekend ends, the tax returns to the normal rate.
Texas does not have other regular tax-free periods for most goods. Some states offer tax-free weeks for energy-efficient appliances or hurricane preparedness supplies, but Texas does not currently have these programs.
Who collects and where the money goes
The seller — the store, restaurant, or service provider — collects sales tax from you at the time of purchase. They hold the money and send it to the Texas Comptroller of Public Accounts, usually monthly. The Comptroller then distributes the state portion to the state budget and sends the local portion to your city and county.
If a business fails to collect or send sales tax, the Comptroller can audit them and assess penalties. As a buyer, you are not responsible for tracking whether a seller collected the tax correctly — that is between the seller and the state.
Frequently Asked Questions
Do I pay sales tax on groceries in Texas?
No. Groceries — food you buy to cook at home — are exempt from sales tax. This includes produce, meat, dairy, bread, and canned goods. Hot food, prepared meals, and restaurant food are taxed.
Is sales tax added to online purchases shipped to Texas?
It depends on the seller. Large retailers and those with a physical location in Texas must collect and send Texas sales tax. Smaller sellers may not. If tax was not added at checkout, you may owe it when you file your taxes, though most individuals do not report this.
What is the sales tax rate where I live?
The state rate is always 6.25 percent. Your local rate depends on your city and county and ranges from 1 to 2 percent. Use the Texas Comptroller's rate lookup tool on the state website, or call your local tax assessor's office to find your exact combined rate.
Are services like haircuts and car repairs taxed in Texas?
Yes. Most services, including haircuts, repairs, cleaning, and installation work, are subject to sales tax in Texas. The tax applies to the labor charge. Professional services like legal advice and accounting are generally not taxed.
Can I get a refund of sales tax I paid?
No. Sales tax is a final charge and is not refunded. If you return an item and get your money back, the sales tax is also refunded as part of the return. If you paid tax on a service, that tax is not refunded.