Texas charges 6.25% state sales tax, plus local taxes that vary by city and county

The state sales tax rate in Texas is 6.25%. This is the baseline tax applied to most purchases across the state. However, your total sales tax is almost always higher because cities and counties add their own local taxes on top of the state rate.

Your actual sales tax depends on where you make the purchase. A city might add 1%, a county might add 0.5%, and a special district might add another 0.125%. These stack on top of the state 6.25%. So if you buy something in Austin, you pay 8.25% total (6.25% state + 2% local). In Houston, it's 8.25% as well, but the breakdown is different. In some smaller towns, it might be 7.25% or lower.

The only way to know your exact rate is to know your city and county. Texas has 254 counties and hundreds of cities, each with different local tax rates. A purchase in one part of town might have a different tax rate than the same purchase three miles away if you cross a city or county line.

Key Takeaways

  • Texas state sales tax is always 6.25%, but your total tax rate includes local additions from your city, county, and sometimes special districts.
  • Total sales tax in Texas ranges from 6.25% (state only, in rare unincorporated areas) to over 8.5% depending on location.
  • You can find your exact local rate by entering your address on the Texas Comptroller of Public Accounts website or asking a retailer.
  • Sales tax applies to most goods but not to groceries, prescription medications, or certain medical equipment.

How local taxes stack on top of the state rate

Texas allows cities and counties to add their own sales taxes within limits set by state law. A city can add up to 2% on top of the state rate. A county can add up to 1%. Special taxing districts—created for schools, transit, or economic development—can add smaller amounts. All of these are added together and collected by the retailer at the register.

This means two people buying the same item at the same store can pay different amounts of tax if they live in different jurisdictions. A resident of one city might pay 7.25% total tax, while someone in an adjacent city pays 8.25%. The retailer charges based on the address where the purchase is made, not where the buyer lives.

The Texas Comptroller of Public Accounts publishes a complete list of all local tax rates by location. You can search by zip code, city, or county on their website to find your exact rate. Many retailers also display the local rate at checkout or on their receipts.

What items are taxed and what are not

Sales tax in Texas applies to most tangible goods—clothing, electronics, furniture, cars, and household items. It also applies to some services, like repairs and installation. However, certain items are exempt from sales tax under Texas law.

Groceries are not taxed in Texas. This includes food you buy at a supermarket or grocery store intended for home consumption: bread, milk, vegetables, meat, canned goods, and similar items. Prepared food—restaurant meals, deli items, hot food from a grocery store—is taxed. Alcohol and tobacco are taxed.

Prescription medications are not taxed. Over-the-counter medicines and vitamins are taxed. Medical equipment prescribed by a doctor—wheelchairs, oxygen equipment, diabetic supplies—may be exempt, but the rules vary by item and how it is purchased. Durable medical equipment is often exempt; ask the retailer or check your receipt.

Services like haircuts, car repairs, and plumbing are generally taxed in Texas. However, some professional services—legal advice, accounting, medical services—are not subject to sales tax. The distinction depends on whether the service is considered a "service" under Texas tax code or something else.

Finding your exact sales tax rate by location

The Texas Comptroller of Public Accounts maintains a sales tax rate lookup tool on their website. You enter your street address, city, or zip code, and the tool shows your exact combined state and local rate. This is the most reliable way to find out what you will pay.

You can also call your city or county tax assessor's office and ask for the current rate. Many city websites list the rate in a FAQ or tax information section. Retailers often know their local rate and can tell you if you ask.

Keep in mind that local tax rates can change. Cities and counties vote to raise or lower their rates periodically. If you checked your rate a year ago, it may have changed. The Comptroller's website is updated when changes take effect, usually on the first day of a month.

Why Texas has different rates in different places

Texas allows local governments to set their own sales tax rates within state limits. This gives cities and counties control over their own revenue. A city that wants to fund schools or infrastructure can raise its local sales tax rate. A city that wants to attract businesses might keep its rate low.

This system creates variation across the state. Urban areas tend to have higher combined rates because cities and counties are stacked on top of each other. Rural areas might have lower rates because fewer taxing districts exist. Border towns sometimes have lower rates to compete with Mexico, where sales tax is lower.

The state rate of 6.25% has been in place since 1983 and does not change. Local rates change more often as cities and counties adjust their budgets. This is why your sales tax rate can differ from a neighboring city's rate, even though you are in the same county.

Frequently Asked Questions

Is sales tax the same everywhere in Texas?

No. The state rate is always 6.25%, but cities and counties add local taxes that vary by location. Your total rate depends on your exact address. Two addresses a few blocks apart might have different rates if they are in different cities or counties.

Do I pay sales tax on groceries in Texas?

No. Unprepared groceries—food you buy at a supermarket to cook at home—are not taxed. Prepared food, restaurant meals, and hot food from a deli counter are taxed. Alcohol and tobacco are taxed even if bought at a grocery store.

What is the highest sales tax rate in Texas?

The highest combined rates are around 8.25% in major cities like Austin, Dallas, and Houston. Some smaller cities or rural areas may have rates as low as 6.25% (state only) or slightly higher. The exact maximum depends on local decisions about tax rates.

Can I get a refund on sales tax I paid?

Generally, no. Sales tax is final once you pay it at the register. However, if you return an item and get a refund, the sales tax is refunded as part of that refund. Some businesses offer tax-free shopping for certain groups—like out-of-state visitors buying items to take out of state—but this is rare and requires documentation.

How do I know if an item is taxed or not?

Check your receipt after purchase—it will show what was taxed and what was not. You can also ask the retailer before you buy. The Texas Comptroller's website has a detailed list of taxable and exempt items. When in doubt, assume an item is taxed unless it is clearly a grocery or prescription medication.