Sales tax in Houston is 8.25 percent on most goods and services you buy
When you buy something in Houston, the price on the shelf is not the price you pay at checkout. Texas adds a state sales tax of 6.25 percent, and Harris County (where Houston sits) adds a local tax of 2 percent, for a combined rate of 8.25 percent. That extra amount is collected by the store and sent to the state and county governments. It applies to clothing, groceries, electronics, restaurant meals, and most other purchases.
The tax rate stays the same whether you shop in downtown Houston, the suburbs, or online retailers shipping to a Houston address. Some items are taxed differently or not at all—groceries you take home to cook are usually exempt, but prepared food and restaurant meals are taxed. Understanding what is and is not taxed helps you budget accurately and know what to expect at the register.
Key Takeaways
- Houston's combined sales tax rate is 8.25 percent: 6.25 percent state tax plus 2 percent Harris County local tax.
- Unprepared groceries like bread, milk, and vegetables are exempt from sales tax, but restaurant meals and prepared foods are taxed.
- Clothing and shoes are taxed in Texas, unlike some other states that exempt apparel.
- Online purchases shipped to a Houston address are subject to the same 8.25 percent rate as in-store purchases.
What items are taxed and what are not
Most items you buy in Houston are subject to the 8.25 percent tax, but a few categories have different rules. Unprepared food—groceries you buy to cook at home—is not taxed. This includes raw meat, fresh produce, bread, milk, eggs, and canned goods. The moment that food is prepared or ready to eat, the tax applies. A rotisserie chicken from the grocery store deli is taxed; a raw chicken breast is not.
Restaurant meals, coffee, takeout pizza, and food from food trucks all carry the full 8.25 percent tax. Clothing and shoes are taxed in Texas, which is different from states like New York or Pennsylvania that exempt apparel. Prescription medications are not taxed, but over-the-counter drugs and vitamins are. Gasoline is taxed, but the tax is included in the pump price you see, not added at checkout.
How the tax is split between state and county
The 8.25 percent rate breaks down into two parts: the state of Texas collects 6.25 percent, and Harris County collects 2 percent. Both amounts are collected by the retailer at the point of sale and then sent to the appropriate government body. You do not pay them separately—the store calculates the total and adds it to your bill.
The state portion funds Texas services like education and infrastructure. The county portion supports Harris County services including public health, roads, and emergency services. If you move outside Harris County but stay in Texas, your local rate will change. For example, Dallas County has a different local rate, so the total tax would be different there.
Sales tax on online and out-of-state purchases
Online retailers must collect and send Houston sales tax on orders shipped to a Houston address. This applies whether you shop from a large retailer like Amazon or a small business website. The tax is calculated based on your shipping address, not where the company is located. If you order something online and have it shipped to Houston, you pay 8.25 percent tax.
Some older online retailers may not yet collect Texas sales tax, though this is becoming rare. If a retailer does not collect tax at checkout, you are technically responsible for reporting and paying it yourself on your state tax return, though most individuals do not. The safest approach is to assume tax will be added to your final bill when you check out.
How sales tax appears on your receipt
On a store receipt, the sales tax is listed as a separate line item after the subtotal. You will see the subtotal (the price of all items before tax), then the tax amount, then the total you owe. The receipt shows the tax as a dollar amount, not just the percentage. For a $100 purchase, the tax would be $8.25, making your total $108.25.
Some receipts break down the tax into state and county portions; others show it as one combined line. Either way, the total is the same. Keeping receipts is useful if you need to track purchases for business expenses or if you have questions about what was charged.
Special situations and exemptions
Certain organizations and purchases are exempt from sales tax. Non-profit organizations with a tax-exempt certificate do not pay sales tax on purchases made for their operations. Resellers who hold a resale certificate do not pay tax when buying inventory they plan to resell. If you are a business owner or work for a non-profit, you may be able to provide a certificate to avoid paying tax on certain purchases.
Items bought for resale are not taxed when the reseller buys them, because the tax will be collected when the final customer buys the item. This prevents double taxation. If you have questions about whether a specific purchase or organization qualifies for an exemption, the Texas Comptroller of Public Accounts website has detailed information, or you can contact Harris County Tax Assessor-Collector's office.
Why the rate is 8.25 percent and not higher or lower
Texas law sets the state sales tax at 6.25 percent. Harris County voters approved a 2 percent local sales tax, which is added on top of the state rate. The county rate is not automatic—it was approved through a local vote and can be changed only through another vote. This is why different Texas counties have different total rates.
The combined 8.25 percent rate in Houston has been in place since the local tax was approved. If Harris County voters were to approve an additional local tax in the future, the rate would go up. Changes to the state rate are rare and require action by the Texas legislature. For current information on any rate changes, you can check the Texas Comptroller website or contact the Harris County Tax Assessor-Collector.
Frequently Asked Questions
Is sales tax included in the price shown on the shelf?
No. The shelf price is the pre-tax price. Sales tax is added at checkout. A $10 item costs $10.83 after the 8.25 percent tax is applied. Stores are required to show the pre-tax price on the shelf and add tax at the register.
Do I pay sales tax on groceries in Houston?
It depends on what you buy. Unprepared groceries like raw vegetables, meat, bread, and milk are not taxed. Prepared foods, deli items, and restaurant meals are taxed at 8.25 percent. If you are unsure whether something counts as prepared food, ask the cashier before checkout.
Do I have to pay sales tax on clothes?
Yes. Texas taxes clothing and shoes at the full 8.25 percent rate. This is different from some states that exempt apparel. The tax applies to new clothes, used clothes, and shoes purchased in Houston.
What happens if a store charges me the wrong tax amount?
Check your receipt and compare the tax to the subtotal. If the math is wrong, point it out to the cashier or manager before you leave. Most errors are caught and corrected on the spot. If you discover an error after leaving, contact the store with your receipt.
Do I pay sales tax when I buy something online from outside Texas?
If the item is shipped to a Houston address, yes—you pay 8.25 percent tax. The retailer's location does not matter. Tax is based on where the item is delivered, not where the company is based.