Texas statewide sales tax is 6.25%, but your actual rate depends on where you buy
Texas has a base sales tax of 6.25% set by the state. However, most cities and counties add their own local tax on top of that. Your total rate can range from 6.25% (in a few unincorporated areas) to as high as 8.25% depending on which city and county you are in. The rate you pay is determined by the address where the sale happens, not where you live.
When you see a price tag in a store, that price does not include sales tax. The tax gets added at checkout. If you buy something for $100 in Houston, you will pay more in tax than if you buy the same item in a smaller town outside the city limits, because Houston has additional local taxes layered on top of the state rate.
Key Takeaways
- Texas state sales tax is 6.25%, but cities and counties can add local taxes that raise your total rate to 8.25% or higher in some places.
- Your sales tax rate is based on the location where you make the purchase, not your home address or where you live.
- Major cities like Houston, Dallas, Austin, and San Antonio each have different combined rates because they layer different local taxes on top of the state rate.
- Sales tax applies to most goods, but groceries, prescription medications, and some medical equipment are exempt from Texas sales tax.
- You can find your exact local rate by entering your address into the Texas Comptroller's online tax rate lookup tool.
How local taxes stack on top of the state rate
Texas allows cities and counties to add their own sales tax. A city might add 1%, and the county might add another 0.5% or 1%. These stack on top of the 6.25% state rate. So if you are in a city with a 1% local tax and a county with a 1% local tax, your total rate is 6.25% + 1% + 1% = 8.25%.
Some areas have no local tax at all and stay at the state rate of 6.25%. These are usually unincorporated areas outside city limits. Once you cross into a city or a county that has voted to add local tax, your rate goes up. This is why two towns next to each other can have different rates.
The money from local sales tax goes to the city or county that collected it. Cities often use it for schools, roads, or public services. Counties use it for similar purposes. The state keeps the 6.25% it collects.
Sales tax rates in Texas's largest cities
The four largest cities in Texas each have different combined rates because they have different local tax structures:
| City | Combined Rate | State + Local Breakdown |
|---|---|---|
| Houston | 8.25% | 6.25% state + 2% local |
| Dallas | 8.25% | 6.25% state + 2% local |
| Austin | 8.25% | 6.25% state + 2% local |
| San Antonio | 8.125% | 6.25% state + 1.875% local |
These rates can change if a city or county votes to adjust its local tax. The rates shown above were current as of the most recent update, but you should verify your specific address before relying on a rate for budgeting or business purposes.
What is and is not taxed in Texas
Most items you buy in stores are subject to sales tax. Clothing, electronics, furniture, and most household goods are all taxed at your local rate. However, Texas has several exemptions that remove the tax from certain purchases.
Groceries are not taxed in Texas. This means items you buy at a grocery store to cook at home — produce, meat, dairy, bread, canned goods — are tax-free. However, prepared food, restaurant meals, and food you eat at the store are taxed. Prescription medications are also exempt from sales tax. Over-the-counter medicines like cold medicine or pain relievers are taxed, but prescriptions filled by a pharmacist are not.
Medical equipment prescribed by a doctor — such as wheelchairs, walkers, or oxygen equipment — is exempt. Some services are also exempt, such as haircuts or repairs, though this varies by type of service. If you are unsure whether a specific item is taxed, ask the cashier or check the Texas Comptroller's website.
How to find your exact local sales tax rate
The Texas Comptroller of Public Accounts maintains an online tool where you can enter your address and see your exact combined sales tax rate. Go to the Comptroller's website and use the "Tax Rate Lookup" tool. You will need to enter your street address, city, and ZIP code. The tool will show you the state rate, any city tax, any county tax, and your total combined rate.
If you do not have internet access, you can call your city or county tax assessor's office and ask for your local rate. They can tell you over the phone. You can also ask a business in your area — they know their local rate because they collect it every day.
Your rate can change if you move to a different city or county, or if a local government votes to change its tax rate. If you are moving or planning a large purchase, it is worth checking your rate at your new address before you go.
Sales tax on online and mail orders
Texas requires online retailers to collect and send sales tax based on the delivery address of your order. If you order something online and have it shipped to an address in Texas, you will pay the sales tax rate for that delivery location, not the rate where the retailer is based.
This applies to most major retailers. Some very small sellers may not collect Texas sales tax, but larger companies and marketplaces like Amazon collect it automatically. The tax appears in your total before you complete the purchase, so you see it before you pay.
If you order from outside Texas and have it shipped to a Texas address, Texas sales tax still applies. The only exception is if the item itself is exempt — for example, if you order groceries or prescription medications online, those remain tax-free.
Frequently Asked Questions
Does Texas have sales tax on groceries?
No. Groceries purchased at a store to cook at home are not taxed in Texas. This includes produce, meat, dairy, bread, and canned goods. However, prepared foods, restaurant meals, and items you eat at the store are taxed at your local rate.
What is the highest sales tax rate in Texas?
The highest combined rate in Texas is 8.25%, which occurs in several cities including Houston, Dallas, and Austin. Some smaller areas may have rates up to 8.25% or slightly higher depending on their local tax structure. The lowest rate is 6.25% in areas with no local tax.
Do I pay sales tax on online purchases shipped to Texas?
Yes. Online retailers are required to collect sales tax based on your delivery address in Texas. The tax rate applied is the combined state and local rate for the address where your order is being shipped.
Are prescription medications taxed in Texas?
No. Prescription medications filled by a pharmacist are exempt from sales tax in Texas. Over-the-counter medicines like cold medicine or pain relievers are taxed at your local rate.
Can a city or county change its sales tax rate?
Yes. Cities and counties can vote to raise or lower their local sales tax rates. When a rate changes, it typically takes effect on the first day of the following month. You can check the Texas Comptroller's website to see if your local rate has changed recently.