Texas sales tax is a tax on goods and some services that you pay at the point of sale
When you buy something in Texas, the seller adds sales tax to your bill. The state sales tax rate is 6.25 percent. Most Texas counties and cities add their own local sales tax on top of that, so your total rate depends on where you are shopping. The combined rate ranges from 6.25 percent (state only, in a few areas) to 8.25 percent in some cities and counties. You pay sales tax on most physical items — clothes, groceries, electronics, furniture — but not on services like haircuts or car repairs, with some exceptions.
The seller collects the tax from you and sends it to the state and local tax authorities. You do not send in sales tax yourself unless you own a business. The tax goes into state and local budgets for schools, roads, and other public services.
Key Takeaways
- Texas state sales tax is 6.25 percent, and most counties and cities add local sales tax on top of that, making your total rate between 6.25 and 8.25 percent depending on location.
- You pay sales tax on most goods like clothing, food, and electronics, but not on most services like haircuts, medical care, or car repairs.
- The seller collects and remits the tax — you do not file sales tax yourself unless you run a business.
- Some items are exempt from sales tax in Texas, including prescription medications, medical devices, and certain agricultural equipment.
State and local sales tax rates vary by county and city
The 6.25 percent state rate applies everywhere in Texas. On top of that, counties can add up to 2 percent and cities can add up to 2 percent more. The actual local rate you pay depends on which county and city you are in when you make the purchase. A purchase in downtown Houston will have a different total rate than one in a suburb or a rural area.
You can find your exact combined rate by entering your address or zip code into the Texas Comptroller of Public Accounts sales tax rate lookup tool on their website. The rate can also change if you move or shop in a different location, so it is worth checking if you are buying something in an unfamiliar area.
What items are subject to sales tax in Texas
Sales tax applies to most tangible goods — things you can touch and take home. This includes clothing, shoes, groceries, household items, electronics, furniture, books, toys, and vehicles. If you buy a car in Texas, sales tax is calculated on the purchase price and collected at the time of sale or registration.
Services are generally not taxed in Texas. You do not pay sales tax on haircuts, medical visits, dental work, car repairs, plumbing, or legal advice. However, some services that include a product — like a restaurant meal or a repair that includes parts — may be taxed on the product portion or the entire transaction depending on what is being sold.
Items that are exempt from Texas sales tax
Certain items do not have sales tax applied, even though they are goods. Prescription medications are exempt. Medical devices prescribed by a doctor, such as wheelchairs, hearing aids, and prosthetics, are also exempt. Insulin and other diabetes supplies are exempt. Agricultural equipment and supplies used directly in farming are exempt.
Some food items have special treatment. Unprepared food — raw meat, fresh vegetables, bread from the bakery section — is not taxed. Prepared food, hot food, and food from a restaurant or deli counter is taxed. Seeds and plants used for food production are exempt, but ornamental plants are taxed.
If you are buying items for resale as a business, you can provide a resale certificate to the seller and avoid paying sales tax at purchase. You will collect sales tax from your customers instead.
How sales tax is collected and where the money goes
The seller is responsible for collecting sales tax from you at the register or checkout. They then send that money to the state and local tax authorities on a schedule set by the Comptroller of Public Accounts — usually monthly or quarterly depending on the business size. The seller keeps records of all sales tax collected in case of an audit.
The state keeps 6.25 percent of what is collected and distributes it to state programs. The local portion — the county and city taxes — goes to those local governments. The money funds public schools, county services, city infrastructure, libraries, and other local programs. Each jurisdiction decides how to spend its portion.
What happens if you buy something online or out of state
If you order something online from a seller outside Texas and have it shipped to a Texas address, you may owe sales tax depending on the seller's location and whether they have a physical presence in Texas. Large online retailers like Amazon now collect Texas sales tax on most items shipped to Texas addresses. Smaller sellers may not, and in those cases, Texas law technically requires you to pay use tax — a tax on items purchased out of state for use in Texas — but this is rarely enforced for individual purchases.
If you buy something in another state and bring it into Texas, you do not pay Texas sales tax on it. However, if you use it in Texas and later sell it, the sale may be subject to Texas sales tax.
Frequently Asked Questions
What is the difference between sales tax and use tax?
Sales tax is what you pay when you buy something in Texas. Use tax is a tax on items you buy outside Texas and bring into the state to use. It is the same rate as sales tax in your area. Most people do not encounter use tax in practice because it applies mainly to business purchases and is rarely enforced for individual consumers.
Do I pay sales tax on groceries in Texas?
Unprepared groceries — raw meat, fresh produce, bread, milk, eggs — are not taxed. Prepared foods, hot foods, and items from a deli or restaurant counter are taxed. Candy and soft drinks are also taxed. If you are unsure, ask the cashier before checkout.
Why does my sales tax rate change when I shop in different cities?
Each city and county in Texas sets its own local sales tax rate on top of the state rate. A city might add 1 percent and a county might add 1 percent, giving you a total of 8.25 percent. A different city or county might add less, so your rate changes based on location.
Do I need to file sales tax if I buy things for personal use?
No. Sales tax is collected by the seller at the point of sale. You do not file or pay sales tax yourself unless you own a business that collects it from customers. If you run a business, you register with the Texas Comptroller and file sales tax returns on a schedule they set.
Is sales tax included in the price shown on the shelf?
No. The price on the shelf or tag does not include sales tax. The tax is added at checkout. This is why your total bill is higher than the labeled price. Some stores show the after-tax total on their website or app, but in-store prices are before tax.