Texas sales tax is 6.25% at the state level, but your total rate depends on local taxes your city or county adds
The state of Texas charges 6.25% sales tax on most goods and some services. However, cities and counties can add their own local sales tax on top of that — usually between 0.5% and 2%. Your total rate is the sum of state plus local, which means the tax you pay in Houston differs from the tax in Dallas or a small town outside Austin. You need to know your specific location's combined rate to calculate what you'll actually pay.
The combined rate applies at checkout. If you buy something for $100 in a place with an 8.25% combined rate, you pay $8.25 in tax and $108.25 total. The rate does not change based on what you buy — the same percentage applies to clothing, groceries, electronics, and most other items, though a few categories have different rules.
Key Takeaways
- Texas state sales tax is always 6.25%, but your city or county may add 0.5% to 2% on top of that, making your total rate between 6.25% and 8.25% depending on where you live.
- To find your exact combined rate, search "[your city] Texas sales tax rate" or check the Texas Comptroller's website, which lists rates by zip code.
- Groceries, prescription medications, and some medical equipment are exempt from sales tax in Texas, but restaurant meals and prepared foods are taxed.
- To calculate tax on a purchase, multiply the price by your combined rate as a decimal — for example, $50 × 0.0825 = $4.13 in tax.
- Online purchases from out-of-state sellers may not have Texas tax added at checkout, but you may owe it when you file your state tax return.
How to find your combined sales tax rate
The easiest way is to visit the Texas Comptroller of Public Accounts website and use their sales tax rate lookup tool. Enter your zip code or city name, and it will show you the state rate (6.25%) plus all local rates stacked on top. The result is your combined rate — the number you use to calculate tax on any purchase in that location.
If you shop in multiple cities or counties, you need to check the rate for each one. A purchase in one zip code may have a different total rate than a purchase five miles away. If you are unsure which rate applies, ask the cashier or check your receipt after the first purchase — the receipt shows the tax rate charged.
You can also call your city or county tax assessor's office directly. They can tell you the exact combined rate and whether any special districts (like transit authorities) add additional tax in your area.
The math: calculating tax on a specific purchase
Convert your combined rate to a decimal and multiply it by the price before tax. If your rate is 8.25%, that is 0.0825 as a decimal. A $75 purchase: $75 × 0.0825 = $6.19 in tax, for a total of $81.19.
Most point-of-sale systems do this automatically, so you see the tax amount on the receipt. If you are budgeting or checking a receipt, use the same method: price × rate (as decimal) = tax amount. Then add the tax to the original price to get your total cost.
For larger purchases or when you are planning a budget, calculate backwards: if you have $100 to spend and your rate is 8.25%, divide $100 by 1.0825 to find the pre-tax price you can afford. That gives you about $92.38 in goods, with $7.62 in tax.
What is and is not taxed in Texas
Exempt from sales tax: Groceries (unprepared food you cook at home), prescription medications, certain medical equipment and supplies, and items bought with food stamps. Clothing is taxed in Texas, unlike some other states.
Taxed: Restaurant meals, prepared foods from a deli or bakery, non-prescription drugs, household supplies, electronics, and most services. If you eat at a restaurant or buy a hot sandwich from a grocery store deli, you pay sales tax. If you buy the same sandwich cold from the grocery shelf, you do not.
The line between "prepared" and "unprepared" matters. A rotisserie chicken from the grocery store is taxed. Raw chicken is not. A bakery cake is taxed. Flour and sugar are not. When in doubt, ask before you check out — the cashier can tell you whether an item is taxable in Texas.
Online purchases and out-of-state sellers
If you buy from an out-of-state online retailer that does not have a physical location in Texas, the seller may not add Texas sales tax at checkout. This does not mean the purchase is tax-free. Texas law requires you to pay use tax — which is the same rate as sales tax — on items you bring into the state, whether you buy them online or in person out of state.
In practice, most people do not pay use tax on individual purchases. However, if you buy a large item (like a car or business equipment) out of state and bring it to Texas, you may owe use tax when you register it or file your state tax return. Large retailers like Amazon now collect Texas sales tax automatically, so this is less common than it once was.
If you are unsure whether tax was collected on an online purchase, check your order confirmation or receipt. If no tax appears and the seller has no Texas presence, assume use tax may apply — though enforcement on small personal purchases is rare.
Sales tax on specific categories
| Category | Taxed? | Notes |
|---|---|---|
| Groceries (unprepared) | No | Raw meat, produce, dry goods, milk, eggs — items you cook at home |
| Restaurant meals | Yes | Dine-in, takeout, delivery — all taxed at your local rate |
| Prepared deli foods | Yes | Hot foods, bakery items, rotisserie chicken, pre-made salads |
| Prescription drugs | No | Requires a valid prescription from a licensed provider |
| Over-the-counter medicine | Yes | Aspirin, cold medicine, vitamins, pain relievers |
| Clothing | Yes | Unlike some states, Texas taxes all clothing items |
| Haircuts and salon services | Yes | Personal services are taxed in Texas |
| Gasoline | Yes | State and local sales tax apply; there is also a separate fuel tax |
Frequently Asked Questions
What is the highest sales tax rate in Texas?
The highest combined rate is 8.25% — the state's 6.25% plus 2% in local taxes. This rate applies in some areas of major cities. The lowest rate is 6.25% (state only, with no local addition), found in a few counties with no local sales tax.
Do I pay sales tax on used items?
Yes, used items are taxed at the same rate as new ones when you buy them from a retailer. If you buy a used car from a dealer, you pay sales tax. If you buy from a private person, you typically do not pay sales tax at the point of sale, but you may owe use tax when you register the vehicle.
Is there sales tax on services in Texas?
Some services are taxed and some are not. Haircuts, repairs, and cleaning services are taxed. Professional services like accounting or legal advice are generally not. When in doubt, ask the service provider whether their fee is subject to sales tax.
Can I get a refund of sales tax I paid?
No, sales tax is not refundable. If you return an item and get your money back, the tax is also refunded — you do not pay tax on a return. But you cannot recover tax paid on items you keep.
Do military personnel get a sales tax exemption in Texas?
Texas does not offer a blanket sales tax exemption for military members on all purchases. However, some items purchased on military bases may be exempt. Check with your base exchange or commissary for their specific tax policy.