Texas has no state income tax, but sales tax varies by location
Texas charges a state sales tax of 6.25 percent on most goods and services. However, your actual sales tax rate depends on where you live or shop, because cities and counties add their own local taxes on top of the state rate. The total you pay at checkout can range from 6.25 percent to over 8 percent depending on your location.
When you see a price tag, that amount does not include sales tax—the tax is added at the register. So a $100 item in one Texas city might cost $106.25 after tax, while the same item in another city could cost $108 or more.
Key Takeaways
- Texas state sales tax is 6.25 percent on most purchases, but your total rate includes local city and county taxes added on top.
- Combined sales tax rates range from 6.25 percent to over 8 percent depending on which city and county you are in.
- Some items like groceries, prescription medicines, and medical devices are exempt from sales tax in Texas.
- You can find your exact local sales tax rate by entering your address on the Texas Comptroller's website or asking a local business.
How local taxes stack on top of the state rate
The state rate of 6.25 percent is just the starting point. Cities in Texas can add up to 2 percent in local sales tax, and counties can add up to 0.5 percent. Some special districts—like public transportation authorities or hospital districts—can add even more for specific purposes.
For example, Houston (Harris County) has a combined rate of 8.25 percent: 6.25 percent state, plus 1 percent city, plus 1 percent county. Austin (Travis County) is 8.25 percent as well, but the breakdown is different. San Antonio (Bexar County) is 8.125 percent. Smaller towns may have lower combined rates if they do not impose a city tax.
The only way to know your exact rate is to look it up for your specific address, because two neighborhoods in the same city can have different rates if they fall into different tax districts.
What items are exempt from sales tax
Not everything you buy in Texas is taxed. Groceries—food you cook at home—are exempt. This includes bread, milk, vegetables, meat, and canned goods. Restaurant meals and prepared foods are taxed, but raw groceries are not.
Prescription medicines are exempt from sales tax. Over-the-counter medicines like aspirin or cold medicine are taxed. Medical devices prescribed by a doctor—such as diabetic supplies, hearing aids, or mobility aids—are also exempt.
Clothing and shoes are taxed in Texas, unlike some other states. Diapers, feminine hygiene products, and other personal care items are taxed as well.
Finding your exact sales tax rate
The Texas Comptroller of Public Accounts maintains a sales tax rate lookup tool on its website. You enter your street address, and it shows you the exact combined rate for that location, broken down by state, city, county, and any special district taxes.
If you do not have internet access or prefer to ask directly, call your city or county tax assessor's office. Any local business—a grocery store, gas station, or retailer—can also tell you the rate, since they use it every day.
Rates can change when cities or counties vote to raise or lower their local taxes, so if you have not checked in a few years, your rate may have shifted.
Sales tax on online and out-of-state purchases
If you order something online from a company based in Texas, Texas sales tax applies. If you order from an out-of-state company, the rule depends on whether that company has a physical presence in Texas (a warehouse, office, or store). If it does, Texas tax applies. If it does not, you typically do not pay Texas sales tax at checkout.
However, Texas law requires you to report and pay use tax on untaxed out-of-state purchases on your state tax return. In practice, very few individuals do this, and the state does not actively pursue it for personal purchases. The rule exists mainly to prevent businesses from avoiding tax by buying out of state.
Who collects and where the money goes
Retailers collect sales tax at the point of sale and send it to the Texas Comptroller. The Comptroller then distributes the money: the state keeps its 6.25 percent share, and the city and county receive their portions based on where the sale occurred.
Sales tax revenue funds schools, roads, emergency services, and other local government operations. Because Texas has no income tax, sales tax is a major source of state and local funding.
Frequently Asked Questions
Is sales tax the same everywhere in Texas?
No. The state rate is 6.25 percent everywhere, but cities and counties add different amounts. Your total rate depends on your exact address. Two cities 10 miles apart can have different combined rates.
Do I pay sales tax on groceries?
No. Raw groceries—food you cook at home—are exempt. Restaurant meals, prepared foods, and food eaten on premises are taxed. Candy and soft drinks are also taxed because they are not considered groceries.
What about sales tax on cars or big purchases?
Sales tax applies to vehicle purchases at the same rate as other goods. When you buy a car, the dealer collects tax on the purchase price. You also pay sales tax on furniture, appliances, and other large items.
Can I get a refund of sales tax I already paid?
Generally, no. Sales tax is final once you complete the purchase. If you return an item and get a refund, the retailer refunds the tax as part of the refund amount. You cannot claim a refund of sales tax on your state income tax return because Texas has no income tax.
Do military members or seniors get a sales tax break in Texas?
Texas does not offer a blanket sales tax exemption for military members or seniors. However, some items used by seniors—like certain medical devices—are exempt. Check with the Texas Comptroller's office about specific items you use regularly.