Yes, Texas has 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 in Texas, you also pay local sales taxes — city and county taxes that vary by location. Your total sales tax bill is the state rate plus whatever local rate applies where you're shopping. A purchase in Houston will have a different total tax than the same purchase in Austin or a small town outside Dallas.

The tax is added at the register. You don't pay it separately or file it yourself — the business collects it and sends it to the state. If you buy something online from a seller based in Texas, or from an out-of-state seller that has a physical presence in Texas, you'll pay Texas sales tax on that purchase too.

Key Takeaways

  • Texas state sales tax is 6.25 percent, but your total rate includes local taxes that range from 0 to 2.125 percent depending on your city and county.
  • Groceries, prescription medications, and certain medical equipment are exempt from sales tax in Texas.
  • Local sales tax rates vary widely — some areas have no local tax at all, while others add more than 2 percent on top of the state rate.
  • You pay sales tax on most services in Texas, including repairs, haircuts, and restaurant meals, not just on physical goods.

How local sales tax works in Texas

Texas allows cities and counties to add their own sales taxes on top of the state rate. A city might add 1 percent, a county might add 0.5 percent, and a transit authority might add another 0.125 percent. These stack together. The result is that your total sales tax rate depends entirely on where you're located when you make the purchase.

Some Texas counties have no local sales tax at all — your rate is just the state 6.25 percent. Others have combined local rates as high as 2.125 percent, bringing your total to 8.375 percent. You can find your exact local rate by entering your address on the Texas Comptroller of Public Accounts website, or by asking a cashier at a store in your area.

What is exempt from sales tax in Texas

Not everything sold in Texas is taxed. Groceries — food you buy to cook at home — are not subject to sales tax. This includes bread, milk, vegetables, meat, and canned goods. Restaurant meals and prepared foods are taxed, but raw groceries are not.

Prescription medications are also exempt. If you fill a prescription at a pharmacy, you don't pay sales tax on the medication itself. Over-the-counter drugs like aspirin or cold medicine are taxed as regular goods.

Certain medical equipment and devices are exempt under specific conditions. Prosthetic limbs, wheelchairs, and oxygen equipment used for medical purposes don't carry sales tax. Hearing aids are exempt. Items like canes or walkers may or may not be taxed depending on how they're classified — ask the seller or check with the Texas Comptroller if you're unsure about a specific item.

Services that are taxed in Texas

Many services are subject to sales tax in Texas, not just physical products. When you get a haircut, you pay sales tax on the service. When you eat at a restaurant, the meal is taxed. Repair services — fixing a car, repairing appliances, or having clothes altered — are taxed. Labor and parts are both taxed when you pay for a repair.

Dry cleaning, laundry services, and shoe repair are taxed. Professional services like accounting or legal advice are generally not taxed, but the line between a taxable service and a non-taxable professional service can be unclear. If you're unsure whether a specific service is taxed, ask the business or contact the Texas Comptroller's office.

Sales tax on online purchases

If you order something online from a Texas-based seller, you pay Texas sales tax — including the local rate for your address. If you order from an out-of-state seller that has a warehouse, office, or other physical location in Texas, you also pay Texas sales tax on that order.

If you order from an out-of-state seller with no presence in Texas, you typically don't pay Texas sales tax at checkout. However, Texas law requires you to report and pay "use tax" on those purchases when you file your state tax return. In practice, most individuals don't do this, but the obligation exists. The tax rate and exemptions are the same as sales tax.

How sales tax is calculated and collected

The business calculates the tax based on your location and the taxable amount of your purchase. If you buy a $100 item in an area with an 8 percent total sales tax rate, the tax is $8, and you pay $108 total. The business collects the tax at the point of sale and holds it until it sends a payment to the state and local tax authorities.

You don't receive a separate bill for sales tax or file it yourself. The tax is included in your receipt total. Businesses are responsible for collecting the correct amount based on the location of the sale and the type of item being sold.

Frequently Asked Questions

Do I pay sales tax if I buy something in one Texas city and take it home to another?

Yes. Sales tax is based on where the sale happens, not where you live. If you buy something in Houston and take it home to Dallas, you pay Houston's sales tax rate at the register. You don't owe Dallas sales tax on that purchase.

Are clothes and shoes taxed in Texas?

Yes. Clothing and shoes are subject to the full sales tax rate in Texas. There is no clothing exemption. A shirt, pair of pants, or shoes all carry sales tax at checkout.

What if a business charges me the wrong sales tax amount?

If you notice the tax charged doesn't match the rate for your area, ask the cashier or manager. Mistakes happen, especially in areas with complex local tax structures. The business should correct it. If you've already paid and left, contact the store and ask for a refund of the overcharge.

Do I pay sales tax on used items bought from a private person?

No. Sales tax applies to sales by businesses, not to private sales between individuals. If you buy a used car, furniture, or clothing from someone selling privately, there is no sales tax. If you buy the same items from a used goods store or reseller, sales tax applies.

Is there sales tax on gasoline in Texas?

Gasoline is subject to sales tax in Texas, but it also has a separate fuel excise tax. The total tax you pay at the pump includes both the sales tax (based on your local rate) and the state fuel tax. The combined rate varies by location but is typically around 20 cents per gallon or more.