Texas sales tax is a tax on most goods and some services that you pay at the point of sale

When you buy something in Texas, you pay sales tax on top of the price. The state collects 6.25 percent of the sale price. Your city or county may add more on top of that, so the total you pay depends on where you are shopping. The seller collects the tax from you and sends it to the state and local government.

Sales tax in Texas applies to most physical items — clothing, groceries, electronics, furniture. It also applies to some services like repairs, haircuts, and pest control. A few things are not taxed: prescription medications, certain medical equipment, and some agricultural supplies. The tax is built into the final price you see at checkout or added at the register, depending on the store.

Key Takeaways

  • Texas state sales tax is 6.25 percent, but your total rate is higher if your city or county adds a local tax on top.
  • Sales tax applies to most goods and many services, but not to prescription drugs, certain medical devices, or unprepared food from a grocery store.
  • The seller collects the tax from you and remits it to the state and local tax offices — you do not pay separately.
  • Online purchases from out-of-state sellers may or may not include Texas sales tax depending on the seller's location and size.

State and local sales tax rates vary by location

The 6.25 percent state rate is the same everywhere in Texas. On top of that, cities and counties can add their own local sales tax. Some areas add 1 percent, others add 2 percent or more. A few areas have no local tax at all, so you pay only the state rate.

Your total sales tax rate depends on the exact address where you make the purchase. Two stores in the same city might have different rates if one is just outside the city limits. The Texas Comptroller of Public Accounts publishes a tax rate lookup tool on its website where you can enter a zip code or address and see the exact rate for that location.

What is and is not taxed in Texas

Most items you buy are taxed: clothing, shoes, toys, electronics, furniture, appliances, and books. Prepared food — restaurant meals, deli sandwiches, hot coffee — is taxed. Unprepared groceries — raw vegetables, meat from the butcher counter, bread from the bakery section — are not taxed. The difference is whether the food is ready to eat.

Services that are taxed include haircuts, car repairs, plumbing, pest control, and dry cleaning. Medical services like doctor visits and dental work are not taxed. Prescription medications are not taxed, but over-the-counter drugs and vitamins are. Gasoline is taxed, but the tax is included in the pump price you see.

Items that are not taxed also include certain medical equipment prescribed by a doctor, seeds and plants for agricultural use, and items sold for resale by a business. If you have a resale certificate, you can buy items without paying sales tax if you plan to resell them.

How online purchases are taxed

If you order from an online retailer that has a physical location in Texas or meets certain size thresholds, Texas sales tax is added to your order. Large national retailers like Amazon and Walmart collect and remit Texas sales tax on orders shipped to Texas addresses.

If you order from a small out-of-state seller with no Texas presence, sales tax may not be added at checkout. You are technically responsible for paying "use tax" on that purchase to Texas, but most individuals do not report this on their own. The state does not actively pursue individual use tax payments for online purchases.

Who collects and where the money goes

The business selling you the item collects sales tax at the point of sale. They hold the money and send it to the state and local tax offices on a regular schedule — usually monthly or quarterly, depending on the business size. The state keeps the 6.25 percent state portion and passes the local portion to your city or county.

Local sales tax revenue funds schools, roads, public safety, and other city and county services. The state portion funds state services. Businesses are required to register with the Texas Comptroller before they can collect sales tax, and they must keep records of all sales and taxes collected.

Sales tax on vehicles and large purchases

When you buy a car in Texas, sales tax is calculated on the purchase price. The tax rate is the same as for other goods — the state rate plus any local tax. If you trade in a vehicle, the sales tax is calculated on the net price (the sale price minus the trade-in value), not the full sale price.

The same rule applies to other large purchases like boats, motorcycles, and recreational vehicles. The dealer or seller collects the tax and remits it to the state. You will see the tax amount listed separately on your bill of sale or purchase agreement.

Frequently Asked Questions

What is the total sales tax rate where I live?

The state rate is always 6.25 percent. Your total depends on your city and county local rates, which range from 0 to 2 percent or more. Use the Texas Comptroller's tax rate lookup tool on its website and enter your zip code or address to see your exact combined rate.

Why is sales tax not included in the price shown on the shelf?

Texas law does not require stores to include sales tax in the displayed price. Stores can choose to show the tax separately at checkout or include it in the price. Most large retailers show it separately so the price tag matches what is on the shelf.

Do I pay sales tax on groceries?

Unprepared groceries like raw meat, vegetables, and bread are not taxed. Prepared foods like deli sandwiches, rotisserie chicken, and hot coffee are taxed. If you are unsure whether an item is considered prepared or unprepared, ask the cashier.

Can I get a refund of sales tax I paid?

Sales tax is not refunded when you return an item. If you return something and get a refund, the refund is for the pre-tax price. If you paid sales tax on the original purchase, that tax is not returned to you.

Do I owe sales tax on items I buy out of state and bring to Texas?

You are technically responsible for paying use tax on items purchased out of state and brought to Texas, but this is rarely enforced for individual purchases. If you buy a vehicle out of state and register it in Texas, you will owe sales or use tax when you register it.