Texas charges sales tax at the point of sale, and the rate depends on where you buy
Texas has a state sales tax of 6.25 percent, but the total tax you pay at checkout is almost always higher because cities and special districts add their own local taxes on top. Your final rate can range from 8.25 percent to 8.875 percent depending on your location. The tax applies to most goods you buy in stores, online, and by mail — but not to groceries, prescription medicines, or most services.
When you see a price tag in a Texas store, that price does not include sales tax. The tax gets added at the register. If you buy something for $100, you will pay between $108.25 and $108.875 depending on your city and county.
Key Takeaways
- Texas state sales tax is 6.25 percent, but your total rate includes local taxes added by your city and special taxing districts.
- Groceries, prescription medicines, and most services are not taxed, but clothing, electronics, and prepared food are.
- Online purchases from out-of-state sellers are subject to Texas sales tax if the seller has a physical presence in Texas or meets federal reporting thresholds.
- Your exact tax rate depends on your address, and rates can differ between neighborhoods in the same city.
How the state and local tax rates stack together
The 6.25 percent state rate is just the starting point. On top of that, your city or county adds a local tax — usually between 1 and 2 percent. Many areas also have special taxing districts for schools, transit, or other services that add another fraction of a percent.
To find your exact rate, you need to know your address. The Comptroller of Public Accounts website has a tax rate lookup tool where you enter your street address and it shows you the combined rate for that location. Rates can vary even between neighborhoods in the same city, so two stores a few blocks apart might charge different totals.
What items are taxed and what are not
Groceries are not taxed in Texas. This means bread, milk, eggs, vegetables, and meat you buy at a grocery store have no sales tax added. However, prepared food — anything hot or ready to eat when you buy it — is taxed. A sandwich from a deli counter is taxed; a loaf of bread is not.
Prescription medicines are not taxed. Over-the-counter medicines like aspirin or cold medicine are taxed, but prescriptions filled by a pharmacist are not.
Most other items are taxed: clothing, shoes, electronics, furniture, gasoline, and restaurant meals. Services like haircuts, plumbing repairs, and car repairs are generally not taxed, though there are exceptions for certain services.
Sales tax on online and mail orders
If you order from an out-of-state seller online or by mail, Texas sales tax still applies if that seller has a physical presence in Texas — a warehouse, office, or store location. Many large retailers like Amazon, Walmart, and Target collect Texas sales tax on all orders shipped to Texas addresses.
Sellers without a Texas location are required to collect sales tax if they meet federal thresholds set by the Supreme Court. As of 2024, most sellers who ship to Texas and have annual sales above a certain amount must collect the tax, even if they have no physical location here. If a seller does not collect sales tax at checkout, you may owe it when you file your taxes, though most individual purchases do not trigger a reporting requirement.
Who collects the tax and where it goes
The business where you buy the item collects the sales tax from you at the register. That business then sends the tax money to the Texas Comptroller of Public Accounts, which distributes it to the state, cities, counties, and special districts according to where the purchase was made.
If you buy something in Austin, the Austin portion of the tax goes to the city of Austin. If you buy something in an unincorporated area of Travis County, that portion goes to the county. The state keeps its 6.25 percent share regardless of location.
Sales tax on used items and secondhand sales
Used items sold by businesses — like used cars from a dealership or used furniture from a resale shop — are subject to sales tax. The tax is calculated on the sale price, not the original price.
Private sales between individuals are generally not subject to sales tax. If you sell your car to a neighbor, no sales tax applies. However, if you sell through a business or dealer, tax applies.
How to find your local sales tax rate
Visit the Comptroller of Public Accounts website and use the Tax Rate Lookup tool. Enter your street address, city, and ZIP code, and the tool will show you the combined state and local rate for your location. You can also call your city or county tax assessor's office if you need help.
Knowing your rate is useful if you are budgeting for a large purchase or trying to understand a receipt. The rate you see in the lookup tool is the one that will be charged when you buy something at that address.
Frequently Asked Questions
Do I pay sales tax on groceries in Texas?
No. Unprepared groceries like bread, milk, vegetables, and meat are not taxed. Prepared foods — hot items, deli sandwiches, and ready-to-eat meals — are taxed. The rule is whether the food is ready to eat when you buy it.
What is the highest sales tax rate in Texas?
The highest combined rate is 8.875 percent in some areas where the state rate, city rate, county rate, and special district rates all stack together. The lowest is 8.25 percent. Your exact rate depends on your address.
Do I owe sales tax on items I buy online from out of state?
Yes, if the seller has a physical presence in Texas or meets federal sales thresholds, they must collect Texas sales tax. Most major online retailers do. If a seller does not collect it, you technically owe it, but individual purchases typically do not require you to report it.
Is sales tax charged on services in Texas?
Most services like haircuts, repairs, and professional work are not taxed. Some specific services are taxed, such as certain telecommunications services. When in doubt, ask the business before you pay.
Can I get a sales tax refund if I overpaid?
No. Sales tax is final at the point of sale. If you believe you were charged incorrectly, contact the business where you made the purchase. Do not contact the Comptroller's office for individual transaction refunds.