Texas has a statewide sales tax of 6.25 percent, but your actual rate depends on local taxes your city or county adds
The state sales tax in Texas is 6.25 percent. However, most Texas cities and counties add their own local sales tax on top of that. Your total rate — what you actually pay at checkout — is the state rate plus whatever local rate applies where you make the purchase. This means the rate you pay in Houston differs from the rate in Dallas, and both differ from rural areas.
Local rates range from 0.125 percent to 2 percent depending on the city and county. Some areas stack multiple local taxes: a city tax, a county tax, and sometimes a transit or economic development district tax. The highest combined rates in Texas reach around 8.25 percent, while the lowest stay at the state rate of 6.25 percent.
Key Takeaways
- Texas state sales tax is 6.25 percent, but you pay more if your city or county adds local taxes on top.
- Local sales tax rates range from 0.125 percent to 2 percent, so your total rate depends on where you shop.
- Major cities like Houston, Dallas, and Austin each have different combined rates because they layer city and county taxes differently.
- The same item costs different amounts in sales tax depending on whether you buy it in one city versus another, even within the same county.
How local taxes stack on top of the state rate
When you buy something in Texas, the sales tax you pay is calculated in layers. First, the state takes 6.25 percent. Then your city adds its local rate, then your county adds its rate. Some areas also have special district taxes for transit systems, hospital districts, or economic development zones. Each layer is a separate percentage added to the purchase price.
A city might add 1 percent and a county might add 0.5 percent, giving you a combined rate of 7.75 percent. But if you drive to a neighboring city with a lower local rate, your total drops. This is why the same gallon of milk costs different sales tax in two places only a few miles apart.
Combined rates in major Texas cities
Here are the combined sales tax rates in some of Texas's largest cities. These rates include state, city, and county taxes. Keep in mind that rates can change when cities or counties vote to adjust their local portion, so these represent the rates as of the most recent updates.
| City | Combined Sales Tax Rate |
|---|---|
| Houston (Harris County) | 8.25 percent |
| Dallas (Dallas County) | 8.25 percent |
| Austin (Travis County) | 8.25 percent |
| San Antonio (Bexar County) | 8.125 percent |
| Fort Worth (Tarrant County) | 8.25 percent |
| El Paso (El Paso County) | 8.25 percent |
These rates reflect the state tax plus city and county additions. Some of these cities also have special district taxes for transit or other services, which may apply depending on where within the city limits you make your purchase.
What items are taxed and what are not
Most goods and services in Texas are subject to sales tax, but some categories are exempt. Groceries — unprepared food you buy to cook at home — are not taxed. Prepared food from restaurants, delis, and food trucks is taxed. Prescription medications are not taxed, but over-the-counter drugs and vitamins are.
Clothing and shoes are taxed in Texas, unlike some other states. Medical equipment and devices prescribed by a doctor may be exempt depending on the specific item. Gasoline is taxed, as are utilities like electricity and water. Services like haircuts, repairs, and labor are generally taxed, though the rules vary by service type.
If you are unsure whether a specific item is taxed, the retailer's receipt will show whether sales tax was charged. The Texas Comptroller's office maintains a detailed list of taxable and exempt items on their website if you need to verify before purchase.
How to find the sales tax rate for your area
The easiest way to find your exact local rate is to check your most recent receipt from any purchase in your city. The receipt shows the combined rate that was charged. You can also search the Texas Comptroller's website by entering your city name or ZIP code — they have a tool that shows the state rate, city rate, county rate, and any special district rates that apply to your location.
If you are shopping online or planning a purchase, knowing your rate matters because it affects the final price. Some online retailers calculate tax based on your shipping address, while others calculate it based on where they are located. Texas requires out-of-state online retailers to collect and remit sales tax on purchases shipped to Texas addresses, so you should see tax added at checkout.
When sales tax rates change
The state rate of 6.25 percent has not changed since 1990. However, local rates change when cities or counties vote to adjust their portion. These changes usually happen after a public vote or city council decision and take effect on a specific date announced in advance.
When a local rate changes, retailers update their systems before the effective date. If you see a different rate on your receipt than you expected, it may mean a local rate change took effect recently. You can confirm the current rate for your area through the Texas Comptroller's website or by calling your city or county tax assessor's office.
Frequently Asked Questions
Is sales tax the same everywhere in Texas?
No. The state rate is 6.25 percent everywhere, but cities and counties add different local rates. Your total rate depends on where you make the purchase. Two cities in the same county can have different combined rates if one city adds a local tax and the other does not.
Do I pay sales tax on groceries?
Unprepared groceries — items you buy to cook at home — are not taxed in Texas. This includes meat, vegetables, bread, and canned goods. However, prepared food from restaurants, deli counters, and food trucks is taxed at the full rate.
What is the highest sales tax rate in Texas?
The highest combined rates in Texas reach approximately 8.25 percent, found in cities like Houston, Dallas, Austin, and Fort Worth. This is the state rate of 6.25 percent plus city and county local taxes. Some areas with special district taxes may reach slightly higher rates.
Do online purchases have sales tax?
Yes. Texas requires online retailers to collect and remit sales tax on purchases shipped to Texas addresses. The tax rate applied is based on your shipping address, not the retailer's location. You should see the tax added at checkout before you complete your purchase.
Can I get a refund on sales tax I already paid?
Generally, no. Sales tax is final once you complete a purchase. If you return an item and receive a refund, the sales tax portion is also refunded. If you believe you were overcharged in error, contact the retailer or the Texas Comptroller's office to report it.