Texas charges sales tax at the point of purchase, and the rate depends on where you buy
Texas has a state sales tax of 6.25 percent. When you buy something in a store or online, you pay that 6.25 percent on top of the price. But the actual tax you pay is often higher, because cities and special districts in Texas can add their own local sales taxes on top of the state rate.
The total sales tax you see on your receipt is the combination of state tax plus any local taxes where the sale happens. A purchase in Austin might have a different total tax rate than the same purchase in Houston, even though both are in Texas. The state sets the floor at 6.25 percent, but local governments can layer on additional tax up to a certain limit.
Sales tax applies to most physical goods you buy — clothing, groceries, electronics, furniture. It does not apply to services like haircuts, car repairs, or medical visits. Some items like prescription medications and certain foods have different rules.
Key Takeaways
- Texas state sales tax is 6.25 percent, but your total rate includes local taxes added by cities and special districts.
- The total sales tax rate in Texas ranges from 6.25 percent to 8.25 percent depending on your location.
- Sales tax applies to most goods but not to services, and some items like prescription drugs have exemptions.
- You pay sales tax at checkout for in-store purchases and when you receive delivery for online orders shipped to Texas.
How local taxes stack on top of state tax
Texas cities and counties can add local sales tax, called local option sales tax, on top of the state rate. Cities can add up to 2 percent, and special districts — like transit authorities or economic development zones — can add more. The maximum combined rate in any location is 8.25 percent.
Your city or county decides whether to impose local sales tax and at what rate. Some Texas cities charge the full 2 percent local tax, others charge less, and a few charge none. Special districts like the Metropolitan Transit Authority in Houston or the Central Texas Regional Mobility Authority add their own tax on top of city and state rates.
You can find the exact sales tax rate for your address by entering your zip code on the Texas Comptroller of Public Accounts website. The rate shown is the total you will pay — it already includes state, city, and any special district taxes combined.
What items are taxed and what are not
Sales tax applies to tangible goods — things you can touch and take home. Clothing, groceries, furniture, electronics, and toys are all taxed. Groceries include most food you buy at a supermarket, though prepared foods and restaurant meals are taxed differently.
Services are not subject to sales tax in Texas. A haircut, dental cleaning, car repair, plumbing work, or medical visit has no sales tax. The distinction matters: if you buy a bottle of shampoo, you pay sales tax; if you pay a salon to wash and cut your hair, you do not.
Some goods have special rules. Prescription medications are exempt from sales tax. Over-the-counter medicines like aspirin or cold medicine are taxed. Certain medical devices and equipment may be exempt depending on how they are classified. Newspapers and magazines are taxed, but some educational materials are not.
Sales tax on online and mail orders shipped to Texas
If you order something online and it ships to a Texas address, you pay Texas sales tax. The seller collects the tax based on the delivery address, not where the seller is located. This applies whether you order from a Texas company, an out-of-state company, or an international seller.
The tax rate used is the rate for the zip code where the item is delivered. If you have it shipped to your home in Dallas, Dallas sales tax applies. If you have it shipped to a friend in San Antonio, San Antonio sales tax applies. The seller's system should calculate the correct local rate automatically.
Some sellers may not collect Texas sales tax if they are very small or operate in a state that has not required them to do so. If you notice a seller did not charge tax on a delivery to Texas, you may owe use tax — a tax on purchases made outside Texas but used inside it. Most individual buyers do not track or pay use tax, but it is technically owed.
Who collects sales tax and where the money goes
The seller — the store, website, or business — collects sales tax from you at the point of sale. They hold that money and send it to the Texas Comptroller of Public Accounts, usually monthly or quarterly depending on the business size. The Comptroller then distributes the money to the state, cities, counties, and special districts according to where the sale occurred.
Sales tax revenue funds public services in Texas. The state portion supports general operations. Local portions fund city services, county services, schools, and special projects like public transit. The breakdown of where money goes depends on local decisions about how much local tax to impose and what it funds.
As a buyer, you do not send tax to the government yourself. The business handles collection and payment. Your only responsibility is to pay the tax shown on your receipt.
Sales tax rates by major Texas cities
| City | State Tax | Local Tax | Total Rate |
|---|---|---|---|
| Houston | 6.25% | 2% | 8.25% |
| Dallas | 6.25% | 2% | 8.25% |
| Austin | 6.25% | 2% | 8.25% |
| San Antonio | 6.25% | 1.875% | 8.125% |
| Fort Worth | 6.25% | 2% | 8.25% |
These rates are current but can change if a city votes to adjust its local tax. Some areas also have special district taxes that add to these totals. Check the Texas Comptroller website for your specific address to see the exact rate that applies to you.
Frequently Asked Questions
Is sales tax included in the price shown on the shelf?
No. The price on the shelf or online is before tax. Sales tax is added at checkout. If an item shows $10, you will pay $10 plus the sales tax for your location — so $10.83 in a place with 8.3 percent tax.
Do I pay sales tax if I buy something out of state and bring it back to Texas?
You technically owe use tax on items purchased out of state and brought into Texas, but this is rarely enforced for individual purchases. Businesses are more likely to be audited for use tax than individuals.
What is the difference between sales tax and use tax?
Sales tax is collected when you buy something in Texas. Use tax is owed when you buy something outside Texas but use it inside Texas. They serve the same purpose — to tax consumption in Texas — but apply in different situations.
Can I get a refund of sales tax I paid?
No. Sales tax is a final cost of purchase. If you return an item, the store refunds the price and the tax together. You do not get a separate tax refund.
Do nonprofits or government agencies pay sales tax?
Most nonprofits and government agencies are exempt from sales tax on purchases they make for their operations. They provide a tax exemption certificate to the seller. This does not apply to individuals or for-profit businesses.