Texas charges a state sales tax of 6.25 percent on most goods and some services

Texas has a state sales tax rate of 6.25 percent. This is the baseline rate the state charges on taxable purchases. However, the total sales 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 rate depends on where you live and shop.

The state collects this tax from retailers, who then send it to the Texas Comptroller of Public Accounts. You do not send in sales tax yourself as a consumer — the store calculates and collects it when you buy something. The tax applies to the purchase price before any discounts or coupons are applied.

Sales tax in Texas is a consumption tax, meaning you pay it when you buy something, not when you earn money. This is different from income tax, which some states charge on wages. Texas has no state income tax, so sales tax is one of the main ways the state funds government services.

Key Takeaways

  • Texas state sales tax is 6.25 percent, but your total rate is higher when you add local city and county taxes.
  • Most goods are taxable, including clothing, electronics, and groceries, though some items like prescription medications are exempt.
  • You can find your exact local sales tax rate by entering your zip code on the Texas Comptroller website or asking a cashier.
  • Sales tax is collected by the retailer at the point of sale and sent to the state, not calculated or paid by you separately.
  • Online purchases from out-of-state sellers may or may not be taxed depending on whether the seller has a physical presence in Texas.

What items are taxed and what items are not

Most physical goods sold in Texas are subject to sales tax. This includes clothing, furniture, electronics, toys, and household items. Groceries that are ready to eat — like restaurant meals, deli food, and bakery items — are taxed. However, unprepared groceries you buy to cook at home, such as raw chicken, vegetables, and bread from the grocery store shelf, are not taxed.

Several categories of items are exempt from sales tax in Texas. Prescription medications and medical devices are not taxed. Services like haircuts, car repairs, and plumbing are generally not taxed, though some specific services may be. Certain items for agricultural use, such as seeds and fertilizer for farming, are also exempt. Items sold for resale — such as inventory a store buys to sell to customers — are not taxed.

The line between taxable and non-taxable can be confusing. For example, a candy bar is taxed, but a loaf of bread is not. A hot rotisserie chicken from the grocery store deli is taxed, but a raw chicken from the meat counter is not. When you are unsure, ask the cashier or check your receipt after purchase — it will show what was taxed and what was not.

How local taxes add to the state rate

Texas allows cities and counties to add their own sales taxes on top of the state 6.25 percent. These local taxes range from 0.5 percent to 2 percent, depending on where you live. Some areas have no local sales tax at all, while others stack multiple local taxes together.

A city might add 1 percent, and the county might add 0.5 percent, bringing your total sales tax to 7.75 percent. In some areas with special districts — such as public transportation authorities or economic development zones — the rate can reach 8.25 percent or higher. The total rate varies by zip code and sometimes even by street address if you live near a city boundary.

To find your exact local sales tax rate, visit the Texas Comptroller of Public Accounts website and enter your zip code into the sales tax rate lookup tool. You can also call your city or county tax assessor's office, or straightforward ask a cashier at a local store what the current rate is. Rates can change when voters approve new local taxes, so it is worth checking if you have not looked in a while.

Sales tax on online and out-of-state purchases

Whether you pay sales tax on an online purchase depends on whether the seller has a physical presence in Texas. If an online retailer has a warehouse, office, or other location in Texas, they must collect and send sales tax to the state. Large retailers like Amazon, Walmart, and Target have Texas locations, so they charge sales tax on orders shipped to Texas addresses.

If a seller has no physical presence in Texas, they are not required to collect sales tax on your purchase. However, Texas law states that you are technically responsible for paying "use tax" on those items — a tax equal to the sales tax rate. In practice, most consumers do not report or pay use tax on individual purchases. Use tax is mainly tracked for business purchases and large transactions.

The rules around online sales tax have changed significantly in recent years as more states have required remote sellers to collect tax. If you are unsure whether a particular online purchase should have been taxed, check your receipt or contact the seller's customer service. Many online retailers now charge sales tax on all orders to any state, regardless of where they are based.

Who collects and where the money goes

Retailers are responsible for collecting sales tax from customers and sending it to the Texas Comptroller of Public Accounts. Most retailers file sales tax reports monthly or quarterly, depending on their sales volume. The Comptroller then distributes the tax revenue to the state general fund and to local governments.

Local sales tax revenue goes to the city and county where the purchase was made. These funds typically support schools, roads, public safety, and other local services. The state portion funds state agencies, education, and infrastructure. Because Texas has no income tax, sales tax is a significant source of revenue for both state and local governments.

Retailers who fail to collect or send in sales tax can face penalties and interest charges from the Comptroller. If you believe a retailer did not charge you the correct sales tax, you can report it to the Texas Comptroller's office, though you cannot recover the difference yourself.

How to calculate sales tax on your purchase

To calculate the sales tax on a purchase, multiply the price by the tax rate as a decimal. For example, if you buy a $50 item in an area with 8.25 percent sales tax, multiply $50 by 0.0825 to get $4.13 in tax. Your total cost would be $54.13.

Most cash registers calculate this automatically and show the tax separately on your receipt. If you are shopping online, the tax is usually added during checkout and shown before you complete your purchase. Some retailers round the final total to the nearest cent, which is legal in Texas.

If you are budgeting for a large purchase, remember to factor in sales tax. A $1,000 item in an 8.25 percent tax area will actually cost $1,082.50. Knowing the local rate helps you plan spending and understand why your receipt total is higher than the price tag.

Frequently Asked Questions

What is the difference between sales tax and use tax?

Sales tax is charged when you buy something from a retailer in Texas. Use tax is a tax on items you buy from out-of-state sellers who do not collect sales tax. You are legally responsible for paying use tax, but it is rarely enforced for individual consumer purchases. Businesses are more likely to be audited for unpaid use tax on equipment and inventory.

Do I pay sales tax on groceries in Texas?

It depends on what you buy. Unprepared groceries like raw meat, vegetables, bread, and milk are not taxed. Ready-to-eat foods like deli items, hot pizza, restaurant meals, and bakery cakes are taxed. Candy and soft drinks are also taxed. Check your receipt to see which items were taxed.

Can I get a sales tax refund if I overpaid?

Retailers are responsible for sending the correct amount of sales tax to the state. If you believe you were overcharged, contact the retailer first — they may issue a refund or credit. If the retailer refuses, you can file a complaint with the Texas Comptroller, though recovery is not may provide.

Does Texas sales tax explore to services like haircuts or car repairs?

Most services are not subject to sales tax in Texas. Haircuts, car repairs, plumbing, and similar services are generally not taxed. However, some specific services may be taxed depending on the type of work. When in doubt, ask the service provider whether sales tax will be added to your bill.

What happens if a business does not charge me sales tax?

If a retailer fails to charge sales tax, that is between the retailer and the state — you are not responsible for making up the difference. However, you should verify that the correct rate was applied to your purchase. If you notice a pattern of undercharging, you can report it to the Texas Comptroller's office.