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 shop. A purchase that costs $100 in one Texas city might have $6.50 in tax, while the same purchase in another city could have $8.25 in tax.

Local taxing districts — cities, counties, transit authorities, and special districts — decide whether to impose an additional tax and at what rate. This means the sales tax you pay in Houston differs from the rate in Dallas, Austin, San Antonio, or a small town outside those cities. The Texas Comptroller of Public Accounts publishes the combined rate for every city and county, updated monthly.

Key Takeaways

  • Texas state sales tax is 6.25%, but local cities and counties add their own taxes, raising your total to between 6.25% and 8.25%.
  • The combined rate varies by location within Texas, so you pay different amounts depending on which city or county you are in when you make a purchase.
  • You can find your exact local rate on the Texas Comptroller website by entering your zip code or city name.
  • Groceries, prescription medications, and some medical equipment are exempt from sales tax in Texas, but restaurant meals and prepared foods are taxed.

How local add-ons work in Texas

Texas allows cities to add up to 2% in local sales tax. Counties can add up to 1%. Special districts — such as public transportation authorities or economic development zones — can add another 0.5% to 1%. These layers stack on top of the state rate of 6.25%.

For example, Austin's combined rate is 8.25% because the city adds 2%, the county adds 1%, and a special district adds 0.25%. In contrast, some smaller towns in rural Texas may have only the state rate of 6.25% if their city and county have chosen not to impose local taxes.

The decision to add local sales tax is made by city councils and county commissioners through a local vote. Voters in that area must approve the tax increase before it takes effect. This means rates can change when a community votes to add or remove a local tax.

What items are taxed and what are exempt

Most goods and services in Texas are subject to sales tax, but some categories are exempt. Groceries — unprepared food you buy at a supermarket — are not taxed. Prescription medications are also exempt. Medical devices prescribed by a doctor, such as diabetic supplies or mobility aids, are generally exempt as well.

However, prepared and ready-to-eat foods are taxed. This includes restaurant meals, deli items, hot foods from a grocery store, and beverages like soda or coffee. Candy and soft drinks are taxed even if you buy them at a grocery store. Clothing and shoes are taxed in Texas, unlike some other states.

Services are often taxed differently than goods. Haircuts, repairs, and professional services typically have sales tax applied. Digital products — such as e-books, streaming subscriptions, and software downloads — are subject to sales tax in Texas.

Finding your exact local rate

The Texas Comptroller of Public Accounts maintains a searchable database of all combined sales tax rates across the state. You can visit the Comptroller's website and enter your zip code, city name, or address to see the exact rate that applies in that location.

Rates update monthly as cities and counties make changes. If you are moving to a new city in Texas or shopping in a different area, checking the Comptroller's tool takes less than a minute and gives you the current combined rate.

You can also contact your city or county tax assessor's office directly. They can tell you the breakdown of how much the state charges, how much your city adds, and how much your county adds.

Sales tax on online and out-of-state purchases

Texas requires online retailers to collect and send sales tax on purchases shipped to Texas addresses, regardless of where the retailer is located. This applies to most major retailers and marketplaces. The tax rate charged is based on the delivery address in Texas, not where the seller is based.

If you order from a retailer outside Texas and it ships to your Texas address, Texas sales tax should be applied at checkout. Some smaller retailers may not collect Texas tax, but you are technically responsible for paying it yourself when you file taxes — though most individuals do not do this.

How sales tax affects your budget

Sales tax is added at the register, so the price you see on the shelf is not the price you pay. On a $50 purchase in Austin (8.25% tax), you pay $54.13. In a city with only the state rate of 6.25%, the same $50 item costs $53.13. Over time, the difference adds up, especially on large purchases like furniture or appliances.

Unlike income tax, sales tax is not deductible on your federal tax return for most people. It is a direct cost at the point of purchase. Understanding your local rate helps you budget accurately and know what to expect at checkout.

Frequently Asked Questions

Is sales tax the same everywhere in Texas?

No. The state rate is 6.25%, but cities and counties add local taxes that vary by location. Your total rate ranges from 6.25% to 8.25% depending on where you shop. Use the Texas Comptroller's website to find your exact rate by zip code.

Are groceries taxed in Texas?

Unprepared groceries — raw meat, vegetables, bread, milk — are not taxed. However, prepared foods like deli items, hot foods, and restaurant meals are taxed. Candy and soft drinks are also taxed even when bought at a grocery store.

Do I pay sales tax on online orders shipped to Texas?

Yes. Most online retailers are required to collect Texas sales tax on orders shipped to Texas addresses. The rate is based on your delivery address. Smaller retailers may not collect it, but you are technically responsible for the tax.

Can the sales tax rate change?

Yes. Cities and counties can vote to add or remove local sales taxes, which changes the combined rate. The Texas Comptroller updates rates monthly on their website, so check back if you have not looked in a while.

What is the highest sales tax rate in Texas?

The highest combined rate is 8.25%, which occurs in some cities where the state (6.25%), city (2%), and county or special district (up to 1%) all impose taxes. The lowest rate is 6.25% in areas with no local taxes added.