Texas sales tax is 6.25 percent on most goods, but your total rate depends on local add-ons

Texas has a state sales tax of 6.25 percent. When you buy something in a store or online, that 6.25 percent gets added to your bill. However, most Texas cities and counties add their own local sales tax on top of the state rate. Your actual tax rate — the one printed on your receipt — is usually between 8 and 8.25 percent, depending on where you live.

The state collects its portion and sends it to the Texas Comptroller of Public Accounts. Local governments keep their portion. A few Texas counties have no local add-on and charge only the state 6.25 percent, but these are rare.

Key Takeaways

  • Texas state sales tax is 6.25 percent, but your total rate includes local taxes that range from 0 to 2 percent depending on your city or county.
  • Sales tax applies to most tangible goods — clothing, food, electronics, furniture — but not to services like haircuts, car repairs, or medical care.
  • Groceries and prescription medications are exempt from sales tax in Texas, though prepared foods and non-prescription items are taxed.
  • Online purchases from out-of-state sellers are subject to Texas sales tax if the seller has a physical presence in the state or meets federal thresholds for remote sellers.
  • You can find your exact local sales tax rate on the Texas Comptroller website by entering your zip code.

What gets taxed and what does not

Sales tax in Texas applies to tangible personal property — things you can touch and take home. Clothing, electronics, furniture, toys, and most household items are taxed. Food you buy at a grocery store to cook at home is not taxed. But prepared food — a sandwich from a deli counter, a meal at a restaurant, a coffee from a café — is taxed.

Services are not taxed. A haircut, a car repair, a plumber fixing your sink, a doctor's visit — none of these are subject to sales tax, even though you pay for them. The distinction matters because a business that sells both goods and services needs to know which part of the bill gets taxed.

Prescription medications are exempt. Over-the-counter medicines, vitamins, and health supplements are taxed. This applies whether you buy them in a pharmacy, a grocery store, or online.

Local sales tax rates vary by county and city

Texas allows cities and counties to add their own sales tax on top of the state rate. A city might add 1 percent, and the county might add another 0.5 percent. That means a resident pays 6.25 + 1 + 0.5 = 7.75 percent total.

The combined rate in major cities is typically between 8 and 8.25 percent. Houston is 8.25 percent. Dallas is 8.25 percent. Austin is 8.25 percent. San Antonio is 8.125 percent. Some smaller towns and rural areas may be lower. A few counties have no local add-on at all, though this is uncommon.

To find your exact rate, visit the Texas Comptroller of Public Accounts website and enter your zip code. The site shows the state rate, the local rate, and the combined total. This matters if you live near a border — you might pay a different rate in the next town over.

How sales tax applies to online purchases

If you buy something online from a Texas seller, Texas sales tax applies. If you buy from an out-of-state seller, the rule depends on whether that seller has a nexus — a physical presence like a warehouse, office, or employee — in Texas. If they do, they must charge you Texas sales tax. If they do not, they typically do not charge it at checkout.

However, you may still owe tax. Texas law says residents should pay sales tax on out-of-state purchases where no tax was charged. This is called use tax, and it is the same rate as sales tax. Most people do not pay it voluntarily. It is collected mainly when a business buys something out of state for resale.

Large online retailers like Amazon, Walmart, and Target have warehouses in Texas and charge Texas sales tax on all orders shipped to Texas addresses. Smaller sellers may not, depending on their setup.

Who collects and where the money goes

The seller — the store, the online retailer, the restaurant — collects sales tax from you at the point of sale. They hold it and send it to the Texas Comptroller of Public Accounts, usually monthly. The Comptroller keeps the state's 6.25 percent and distributes the local portion to cities and counties based on where the sale happened.

If you buy something in Dallas, the Dallas portion of the tax goes to Dallas. If you buy it in Houston, the Houston portion goes to Houston. This is why local governments care about sales tax — it funds schools, roads, and public services.

Businesses that sell taxable goods must register with the Comptroller and get a sales tax permit. They are responsible for collecting the correct amount based on the buyer's location, not the seller's location.

Special cases and exemptions

Certain organizations do not pay sales tax. Nonprofits, schools, and government agencies can buy goods tax-free if they have a resale certificate or tax exemption letter from the Comptroller. A church buying supplies for a community event, a school buying textbooks, or a city buying equipment would not pay sales tax.

Resellers — businesses that buy goods to resell — do not pay sales tax on their purchases if they have a resale certificate. They collect tax from the end customer instead. This prevents double taxation.

Items bought for resale out of state may also be exempt, depending on the circumstances. A Texas business buying inventory to ship to another state typically does not pay Texas sales tax on that purchase.

How to check your receipt and understand the breakdown

Your receipt shows the subtotal, the tax amount, and the total. The tax amount should equal your local combined rate times the subtotal. If you buy something for $100 in Austin (8.25 percent tax), the tax should be $8.25, and your total should be $108.25.

Some items on the same receipt may be taxed differently. Groceries are not taxed, but a greeting card or a magazine is. A deli counter might sell both — a rotisserie chicken (taxed) and a bag of raw chicken (not taxed). The receipt should show which items were taxed and which were not, though not all registers break this down clearly.

If you think you were charged the wrong rate, check the Texas Comptroller website to confirm your local rate. If the receipt is wrong, ask the store to correct it. Overcharges are usually honest mistakes, and stores will refund the difference.

Frequently Asked Questions

Is clothing taxed in Texas?

Yes. Clothing is subject to the full state and local sales tax. There is no clothing exemption in Texas, unlike some other states. This applies to shoes, hats, jackets, and accessories.

Do I pay sales tax on groceries?

No. Unprepared food you buy at a grocery store — raw meat, vegetables, bread, milk, eggs — is not taxed. Prepared foods like deli sandwiches, hot pizza, or restaurant meals are taxed.

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 buy out of state where no sales tax was charged. Both are the same rate. Most people do not pay use tax voluntarily, but Texas residents technically owe it on taxable purchases from sellers with no Texas presence.

Why do different cities in Texas have different sales tax rates?

Each city and county can set its own local sales tax rate within state limits. They use the money for schools, roads, and public services. A city with more local needs or lower property tax revenue may set a higher sales tax rate.

Do I have to pay sales tax on a car purchase in Texas?

Yes. Vehicle purchases are subject to sales tax, though the calculation is more complex because it also involves title and registration fees. The tax is based on the purchase price of the vehicle and your local combined rate.