Texas has a sales tax, and it applies to most goods you buy in stores

Yes, Texas charges a sales tax on retail purchases. The state sales tax rate is 6.25 percent. However, the total tax you pay at checkout is usually higher because cities and counties add their own local sales taxes on top of the state rate. Your final tax bill depends on where you live and where you make the purchase.

Sales tax in Texas is collected by the retailer at the point of sale. You do not file a separate form or send money to the state yourself—the store handles that. The tax applies to tangible goods (things you can touch), but not to services in most cases. Food you buy at a grocery store to cook at home is not taxed, but prepared food from a restaurant or deli counter is.

Key Takeaways

  • Texas state sales tax is 6.25 percent, but your total rate includes local taxes added by your city or county, which can range from 0 to 2 percent or more.
  • Sales tax applies to most goods and prepared food, but not to groceries, prescription medications, or most services.
  • The total sales tax rate varies by location—a purchase in Houston will have a different rate than the same purchase in Dallas or a rural area.
  • Online purchases from Texas retailers are subject to sales tax; purchases from out-of-state retailers may or may not be, depending on that retailer's nexus in Texas.

How local taxes stack on top of the state rate

The 6.25 percent state rate is the floor, not the ceiling. Cities and counties in Texas can add their own sales taxes, called local option sales taxes. These local rates vary widely—some areas add nothing, while others add 2 percent or more. The combined rate you pay is the state rate plus whatever your local jurisdiction has authorized.

For example, Austin's combined rate is 8.25 percent (6.25 state plus 2 local). Houston's rate is 8.25 percent as well. But a smaller city or rural county might have a combined rate of 6.25 percent or 7.25 percent. You can find your exact local rate by entering your zip code on the Texas Comptroller of Public Accounts website, or by asking a cashier at checkout.

What is and is not taxed in Texas

Sales tax in Texas applies to most physical items: clothing, electronics, furniture, gasoline, and prepared food. It also applies to some services, like dry cleaning and car repairs. However, certain categories are exempt.

Groceries—food you buy to prepare at home—are not taxed in Texas. This includes bread, milk, vegetables, meat, and canned goods. Prescription medications are also exempt. Over-the-counter medicines like aspirin or cold medicine are taxed. Services like haircuts, medical visits, legal information, and accounting are generally not taxed. Prepared food from a restaurant, food truck, or deli counter is taxed, even if you take it home.

Sales tax on online and out-of-state purchases

If you buy something online from a Texas retailer, you pay Texas sales tax. The retailer collects it at checkout, just as they would in a physical store. This applies whether you pick up the item in-store or have it shipped to you.

Out-of-state retailers are required to collect Texas sales tax only if they have a nexus in Texas—meaning they have a physical presence, employees, or warehouses here, or they meet certain sales thresholds. Large retailers like Amazon, Walmart, and Target have nexus in Texas and collect sales tax on orders shipped to Texas addresses. Smaller out-of-state retailers may not. If a retailer does not collect sales tax at checkout, you are technically responsible for paying use tax to Texas, though most individuals do not file this separately.

Who collects the tax and where it goes

The retailer—the store or online seller—collects sales tax from you and is responsible for sending it to the state. You never write a check to the Texas Comptroller of Public Accounts yourself. The retailer files a sales tax return, usually monthly or quarterly, and remits the tax collected.

Once the state receives the tax, it is split between the state general fund and the local jurisdictions where the tax was collected. Cities and counties use their portion for schools, roads, emergency services, and other local programs. The state uses its portion for education, healthcare, and other state services.

Special situations and exemptions

Certain organizations and purchases are exempt from sales tax in Texas. Nonprofits, government agencies, and religious organizations can obtain a resale certificate or exemption certificate to avoid paying tax on purchases they make for their operations. Farmers can buy equipment and supplies without tax if they hold an agricultural exemption certificate.

Resellers—people who buy goods to resell them—do not pay sales tax on their purchases if they provide a resale certificate to the seller. Instead, they collect sales tax from their customers. This prevents the same item from being taxed twice.

How to find your exact sales tax rate

Your sales tax rate depends on your location. The easiest way to find it is to visit the Texas Comptroller of Public Accounts website and use their sales tax rate lookup tool. Enter your zip code, and the tool will show you the combined state and local rate for that area.

You can also call your city or county tax office, or straightforward ask a cashier at a store in your area. Rates can change when local jurisdictions vote to raise or lower their local option tax, so if you have not checked in a while, it is worth confirming your current rate.

Frequently Asked Questions

Do I pay sales tax on groceries in Texas?

No. Food you buy at a grocery store to prepare at home is not taxed in Texas. This includes produce, meat, dairy, bread, and canned goods. However, prepared food from a restaurant, deli counter, or food truck is taxed.

What is the difference between sales tax and use tax?

Sales tax is collected by the seller at the point of sale. Use tax is a tax you owe on items you buy from out-of-state sellers who do not collect Texas sales tax. Most individuals do not file use tax separately; it is mainly tracked by businesses.

Can I get a refund of sales tax I already paid?

Generally, no. Sales tax is a final cost of the purchase. If you return an item and receive a refund, the sales tax is refunded as part of that refund. You cannot claim a refund of sales tax on your income tax return.

Do I pay sales tax on services like haircuts or car repairs?

Most services are not taxed in Texas. Haircuts, medical visits, and legal information are not taxed. However, some services like dry cleaning and car repairs are taxed. The rule depends on the specific service.

Is sales tax the same everywhere in Texas?

No. The state rate is 6.25 percent everywhere, but local rates vary by city and county. Your total rate can range from 6.25 percent to over 8 percent depending on where you live. Use the Texas Comptroller website to find your exact rate.