Texas Sales Tax: State Rate Plus Local Additions
Texas has a state sales tax of 6.25 percent. However, the total tax you pay at checkout is almost always higher because cities and counties add their own local taxes on top of the state rate. Your actual sales tax depends on where you are shopping — it can range from 8.25 percent in some areas to 8.875 percent or higher in others.
The state collects its 6.25 percent, then passes a portion to cities and counties based on where the sale happened. Local governments use this money for schools, roads, and public services. When you buy something, the cashier or online system charges you the combined rate for that specific location. The rate you see on your receipt is always the correct one for that address.
Key Takeaways
- Texas state sales tax is 6.25 percent, but your total tax is higher because cities and counties add local taxes on top.
- The combined rate varies by location and can range from 8.25 percent to 8.875 percent depending on which city and county you are in.
- Online purchases are taxed based on the address where the item is being delivered, not where the seller is located.
- Groceries, prescription medications, and some medical devices are exempt from sales tax in Texas.
- You can find your exact local rate by entering your address on the Texas Comptroller of Public Accounts website or asking a local business.
How Local Taxes Stack on Top of the State Rate
Most Texas cities charge a local sales tax between 1 percent and 2 percent. Counties may add another 0.25 percent to 1 percent. These local rates are set by city councils and county commissioners, so they differ from place to place. A city in one county might charge 2 percent while a neighboring city in another county charges 1.5 percent.
The total you pay is the sum of all these layers. For example, if you shop in Austin (Travis County), you pay 6.25 percent state tax plus 2 percent city tax plus 0.125 percent county tax, for a total of 8.375 percent. In Houston (Harris County), the rate is 6.25 percent state plus 2 percent city plus 0.5 percent county, totaling 8.75 percent. The same item costs different amounts in tax depending on which city you are in.
Sales Tax Rates in Major Texas Cities
The combined sales tax rate varies noticeably across Texas's largest cities. Austin, San Antonio, and some surrounding areas fall in the 8.375 percent range, while Houston reaches 8.75 percent due to higher county and city additions. Dallas, Fort Worth, Arlington, and Corpus Christi cluster around 8.25 percent, and El Paso sits at 8.625 percent. These rates reflect decisions made by each city and county over time and can shift when local governments vote to adjust their portion.
| City | County | Combined Rate |
|---|---|---|
| Austin | Travis | 8.375% |
| Dallas | Dallas | 8.25% |
| Houston | Harris | 8.75% |
| San Antonio | Bexar | 8.375% |
| Fort Worth | Tarrant | 8.25% |
| Arlington | Tarrant | 8.25% |
| Corpus Christi | Nueces | 8.25% |
| El Paso | El Paso | 8.625% |
These rates are current but can change when a city or county votes to adjust its local tax. Check your specific address on the Texas Comptroller website if you need the exact rate for a smaller city or neighborhood, since rates can vary even within the same county.
What Is and Is Not Taxed in Texas
Most items you buy in stores are subject to sales tax, including clothing, electronics, furniture, and household goods. However, Texas exempts certain items from sales tax. Groceries — unprepared food you cook at home — are not taxed. This includes bread, milk, vegetables, meat, and canned goods. Hot food from a deli counter or restaurant is taxed because it is prepared food.
Prescription medications are also exempt from sales tax in Texas. Over-the-counter medicines like cold medicine or pain relievers are taxed. Medical devices prescribed by a doctor, such as diabetic testing supplies or hearing aids, are generally exempt. Services are not taxed — haircuts, car repairs, and dental work do not have sales tax added. If you buy a product as part of a service, such as hair products at a salon, that product portion may be taxed separately.
How Online and Out-of-State Purchases Are Taxed
When you order something online and have it delivered to a Texas address, you pay the sales tax rate for that delivery address. If you live in Houston and order from a company in California, you still pay Houston's 8.75 percent tax because the item is being delivered to you in Houston. The seller's location does not matter — only where you receive the item.
If you order something to be picked up at a store location in Texas, you pay the tax rate for that store's location. Some online retailers do not charge tax at checkout but may send you a notice later asking you to pay use tax directly to the state — this is rare but can happen with certain out-of-state sellers. Most major retailers now charge Texas sales tax automatically at checkout based on your delivery address.
Finding Your Exact Local Sales Tax Rate
The easiest way to find your exact sales tax rate is to visit the Texas Comptroller of Public Accounts website and use their sales tax rate lookup tool. You enter your street address, city, or ZIP code, and the tool shows you the combined state and local rate for that location. This is the most accurate method because rates can vary by neighborhood in larger cities.
You can also call your city's tax office or ask a cashier at a local store what the current rate is. The rate you see on a receipt is always the correct one for that location. If you are moving to a new city in Texas or shopping in an unfamiliar area, checking the rate beforehand helps you budget accurately for larger purchases.
Frequently Asked Questions
Does Texas have a state income tax?
No, Texas does not have a state income tax. The state funds itself through sales tax, property tax, and other sources. This is one reason Texas sales tax is relatively high compared to some other states.
Is sales tax charged on clothing in Texas?
Yes, clothing is subject to the full sales tax rate in Texas. There is no clothing exemption. This includes shoes, accessories, and all apparel.
What is the difference between sales tax and use tax?
Sales tax is charged when you buy something. Use tax is a tax on items you bring into Texas or use in Texas that were purchased without paying sales tax — for example, buying something in another state and bringing it home. Most people do not owe use tax because retailers already charged sales tax at purchase.
Can I get a sales tax refund if I return something?
Yes, when you return an item and get a refund, the sales tax is refunded along with the purchase price. The refund amount should match what you originally paid in tax.
Do I pay sales tax on services like haircuts or car repairs?
No, services are not subject to sales tax in Texas. You pay for the service itself, but no sales tax is added. However, if you buy a product as part of the service — like hair products at a salon — that product portion may be taxed.