Texas has a base sales tax of 6.25%, but your total rate depends on local add-ons

The state of Texas charges 6.25% sales tax on most purchases. However, cities and counties can add their own local sales taxes on top of that. Your actual rate at checkout ranges from 6.25% to 8.25%, depending on where you live and shop. A purchase that costs $100 in one Texas city might have $6.25 in tax, while the same purchase in another city could have $8.25 in tax.

Local taxing districts — called special purpose districts — can stack additional taxes for specific purposes like public transportation, economic development, or sports facilities. These are separate from city and county taxes and vary widely by location. The only way to know your exact rate is to check what applies in your specific city and county.

Key Takeaways

  • Texas state sales tax is 6.25%, but cities and counties add local taxes that raise your total to between 6.25% and 8.25%.
  • Your exact rate depends on your address, not where the business is located, so two stores on opposite sides of a city line may charge different totals.
  • Special purpose districts can add taxes for transit, stadiums, or other projects, and these stack on top of city and county rates.
  • Groceries, prescription medications, and some medical equipment are exempt from sales tax in Texas.

How to find your local sales tax rate

The Texas Comptroller of Public Accounts maintains a searchable database where you enter your address and see the exact combined rate for your location. You can also call your city or county tax assessor's office and ask directly — they can tell you the breakdown: state rate, city rate, county rate, and any special district rates.

If you shop online, the seller's location does not determine your tax. Your location does. If you live in Austin and buy from a retailer in Dallas, you pay Austin's rate. This matters because some online sellers do not collect Texas tax, which means you may owe it yourself when you file taxes — though most people do not report this.

What is and is not taxed in Texas

Most goods and services are taxed, but Texas has specific exemptions. Groceries — food you cook at home — are not taxed. Restaurant meals and prepared food are taxed. Prescription medications are not taxed, but over-the-counter drugs are. Medical equipment like wheelchairs and oxygen equipment may be exempt depending on the specific item.

Clothing is taxed in Texas, including shoes and accessories. Gasoline is taxed at the pump, but that is a separate fuel tax, not sales tax. Services like haircuts, car repairs, and plumbing are taxed. Digital products like e-books, streaming subscriptions, and software downloads are taxed as of 2019.

Sales tax on major purchases

When you buy a car in Texas, sales tax applies to the purchase price. The rate is your local combined rate, not a special auto tax. If you trade in a vehicle, you pay tax only on the difference between the new car's price and your trade-in value. A $30,000 car with a $10,000 trade-in means you pay tax on $20,000.

Real estate — buying a house or land — is not subject to sales tax. Property tax is separate and is assessed by your county. Rental property is also not subject to sales tax, though the rental income itself is subject to income tax if you are a landlord.

Sales tax on services

Texas taxes many services that other states do not. Labor and parts for car repairs are both taxed. Appliance repair, plumbing, electrical work, and HVAC service are taxed. Haircuts and salon services are taxed. Pest control and lawn care are taxed. If you hire someone to perform work, the labor is usually taxable.

However, some services are not taxed. Legal services, accounting services, and medical services performed by licensed professionals are generally not taxed. Shipping and delivery charges are sometimes taxed and sometimes not, depending on whether they are bundled with the product or charged separately — this varies by retailer.

How sales tax is collected and reported

Businesses collect sales tax at the point of sale and send it to the Texas Comptroller monthly or quarterly, depending on their size and sales volume. The business is responsible for collecting the correct amount based on your location. If a business fails to collect tax, the state can pursue the business, not the customer.

As a consumer, you are not responsible for tracking or reporting sales tax on purchases you make in person. If you buy from an out-of-state seller who does not collect Texas tax, you are technically supposed to report that on your state tax return, but this is rarely enforced for individual purchases.

Frequently Asked Questions

Do I pay sales tax if I buy something online from outside Texas?

If the seller has a physical presence in Texas, they must collect Texas sales tax. If they do not, you technically owe it, but it is rarely enforced for individual purchases. Large online retailers like Amazon now collect tax in all states, including Texas.

Is sales tax the same everywhere in Texas?

No. Your address determines your rate. Two neighborhoods in the same city can have different rates if one is in a special taxing district. Always check your specific location rather than assuming all of Texas is the same.

Can I get a sales tax refund if I overpaid?

No. Sales tax is final at the point of sale. If a business charged you the wrong amount, contact them directly. The state does not process refunds for individual purchases.

Are used items taxed differently than new items?

Used items are taxed at the same rate as new items in Texas. A used car, used furniture, or used clothing all have sales tax applied at your local rate.