Texas has a statewide sales tax of 6.25 percent, but your actual rate depends on local taxes

The state of Texas charges 6.25 percent sales tax on most goods and services. However, that is not the full amount you pay at checkout. Cities and counties in Texas can add their own local sales taxes on top of the state rate, which means your total sales tax ranges from 6.25 percent to 8.25 percent depending on where you shop. Some Texas counties and cities do not add local tax, so you pay only the state rate. Others add up to 2 percent in local taxes.

The rate you pay is determined by the location of the business where you make the purchase, not where you live. If you buy something in a city that has added local sales tax, you pay that city's combined rate even if you live in a place with no local tax.

Key Takeaways

  • Texas state sales tax is 6.25 percent on most purchases, but local taxes can add up to 2 percent more.
  • Your total sales tax rate depends on the city and county where you make the purchase, not where you live.
  • Some Texas cities and counties have no local sales tax, so shoppers there pay only 6.25 percent.
  • Food bought at a grocery store is taxed at 6.25 percent, but prepared food and restaurant meals are taxed at the full local rate.

How local sales taxes work in Texas

Texas allows cities and counties to vote on whether to add local sales tax. A city might add 1 percent, and the county might add another 1 percent, for a combined local rate of 2 percent. When you buy something in that city, you pay 6.25 percent state tax plus 2 percent local tax, for a total of 8.25 percent.

Not all Texas cities and counties use this option. Some have chosen not to add local sales tax, so residents and shoppers there pay only the 6.25 percent state rate. You can find your local rate by entering your zip code on the Texas Comptroller of Public Accounts website, or by asking a cashier at a store in your area.

What items are taxed and what are not

Most goods sold in Texas are subject to sales tax, including clothing, electronics, furniture, and household items. However, some items are not taxed. Unprepared food bought at a grocery store — such as raw meat, vegetables, bread, and milk — is not taxed. Prescription medications are also not taxed in Texas.

Prepared food is taxed at the full rate. If you buy a sandwich from a deli counter, a meal at a restaurant, or hot food from a grocery store, you pay sales tax on that purchase. The difference is whether the food is ready to eat or requires preparation at home.

Sales tax on online and out-of-state purchases

If you buy something online from a retailer that has a physical location in Texas or meets certain sales thresholds, Texas sales tax applies to your order. The retailer collects the tax based on the address where the item is being shipped. If you live in a Texas city with local sales tax, the retailer should charge you that combined rate.

Some online retailers that do not have a Texas presence may not charge Texas sales tax. However, Texas residents are technically responsible for paying use tax on those purchases when they file their tax return, though this is rarely enforced for individual purchases. The use tax rate is the same as the sales tax rate in your area.

Sales tax on services

Most services in Texas are not subject to sales tax. Haircuts, medical visits, legal advice, and car repairs are generally not taxed. However, some services are taxed. Pest control, landscaping, and certain repairs to tangible property may be subject to sales tax depending on the circumstances and how the service is billed.

If you are unsure whether a particular service is taxed, ask the business before you pay. The rules can be specific to how the service is described and invoiced, so a direct question often gets a clear answer.

Finding your specific local sales tax rate

To find the exact sales tax rate for your area, visit the Texas Comptroller of Public Accounts website and use their sales tax rate lookup tool. Enter your zip code or address, and the tool will show you the combined state and local rate for that location. You can also call your city or county tax assessor's office, or ask at any retail store in your area.

Keep in mind that rates can change when cities or counties vote to add or remove local sales tax. These changes usually take effect on the first day of a month, so it is worth checking occasionally if you live near a city boundary or if you shop in multiple locations.

Frequently Asked Questions

Is Texas sales tax the same everywhere in the state?

No. The state rate is 6.25 percent everywhere, but cities and counties add their own local taxes. Your total rate depends on where you shop. Some areas have only the state rate of 6.25 percent, while others have rates as high as 8.25 percent.

Do I pay sales tax on groceries in Texas?

Unprepared groceries like raw meat, vegetables, bread, and milk are not taxed. Prepared foods from a deli, bakery, or restaurant are taxed at the full rate in your area. Some grocery stores have both taxed and untaxed items, so your receipt may show different tax amounts.

What if I buy something online and have it shipped to Texas?

If the online retailer has a Texas presence or meets sales thresholds, they should charge you Texas sales tax based on your shipping address. The rate will be the combined state and local rate for that location. Some smaller retailers may not charge tax, but you may owe use tax when you file your return.

Can the sales tax rate change?

Yes. Cities and counties can vote to add or remove local sales tax. Changes usually take effect on the first day of a month. Check the Texas Comptroller website if you notice a rate difference, or if you live near a city boundary where rates differ.