Texas Sales Tax: The Statewide Rate and Local Add-Ons
Texas has a statewide sales tax of 6.25 percent, but what you actually pay at the register is almost always higher because cities and counties add their own local taxes on top. Most Texas shoppers pay between 8 and 8.25 percent total, though some areas go as high as 8.875 percent. The exact rate depends on where you live and where you make the purchase—even neighboring cities can have different totals.
The state collects its 6.25 percent and sends it to Austin. Cities and counties then layer on their own rates, which can range from 0.5 to 2 percent depending on local needs and voter approval. A city might add 1 percent for schools, and the county might add another 0.5 percent for roads. That combination—6.25 percent state plus 1.5 percent local—gives you 7.75 percent at checkout.
Key Takeaways
- Texas's statewide sales tax is 6.25 percent, but your total rate includes local taxes added by your city and county.
- Most Texas residents pay between 8 and 8.25 percent total sales tax, though rates vary by location.
- You can find your exact local rate on the Texas Comptroller of Public Accounts website by entering your address or ZIP code.
- Groceries, prescription medications, and some medical equipment are exempt from sales tax in Texas.
- Sales tax applies to most purchases including clothing, electronics, and restaurant meals, but not to services like haircuts or car repairs.
How to Find Your Exact Local Sales Tax Rate
The Texas Comptroller of Public Accounts maintains a searchable database that shows the exact rate for any address in the state. Go to the Comptroller's website and use the sales tax rate lookup tool—you can search by ZIP code, city name, or street address. The tool shows you the breakdown: state rate, city rate, county rate, and any special district rates that might explore.
Your rate can change if you move to a different city or county, or if local voters approve a new tax. Rates also shift when special districts—like hospital districts or transit authorities—add their own small percentages. If you live near a city border, the rate on one side of the street might differ from the other side, so it pays to check before making a large purchase.
What Is and Isn't Taxed in Texas
Most items you buy are subject to sales tax: clothing, shoes, electronics, furniture, toys, and household goods all get taxed at your local rate. Restaurant meals and prepared foods are taxed. Gasoline is taxed. However, some categories are exempt from sales tax entirely.
Groceries—unprepared food you cook at home—are not taxed. This includes bread, milk, vegetables, meat, and canned goods. Prescription medications are also exempt. Medical equipment like wheelchairs, walkers, and diabetic supplies are exempt when prescribed by a doctor. Services are generally not taxed: a haircut, car repair, plumbing work, or dental cleaning do not have sales tax added. The rule is straightforward: if you are buying a physical product, it is usually taxed; if you are paying for someone's labor or skill, it usually is not.
Sales Tax on Online and Out-of-State Purchases
If you order something online from a retailer that has a physical location in Texas or meets certain sales thresholds, Texas sales tax applies to your order. Large national retailers like Amazon, Walmart, and Target collect Texas sales tax on orders shipped to Texas addresses. Smaller online sellers may not collect it, but Texas law says you technically owe the tax anyway—though most individuals do not report it.
If you buy something from an out-of-state retailer with no Texas presence and they do not collect sales tax, you are not expected to track it down and pay it yourself as an individual. The rule exists mainly for businesses. However, if you are buying from a retailer that does business in Texas, expect the tax to be added at checkout, whether you are shopping in a store or online.
Who Collects and Where the Money Goes
The retailer—the store or online seller—collects sales tax from you at the point of sale and holds it temporarily. They then send it to the Texas Comptroller of Public Accounts, which distributes the money to the state, cities, and counties according to where the purchase happened. If you buy something in Houston, Houston gets its share of the local tax; if you buy in Dallas, Dallas gets its share.
The state's 6.25 percent goes into the state general fund, which pays for schools, highways, and other state services. Local taxes fund city and county services like police, fire departments, libraries, and public works. Some local taxes are dedicated to specific purposes—a city might have voted to add 0.5 percent specifically for parks, for example.
Sales Tax on Major Purchase Categories
Understanding which categories are taxed helps you budget for large purchases. Vehicles are taxed at your local rate when you buy them—a $20,000 car in an area with 8.25 percent tax costs you $1,650 in sales tax. Real estate and home sales are not subject to sales tax, though you may owe property tax. Utilities like electricity and water are not taxed.
Clothing and shoes are taxed at the full local rate with no exemptions. Books, newspapers, and magazines are taxed. Alcohol and tobacco products are taxed, plus they carry additional state excise taxes on top. Firearms and ammunition are taxed. If you are unsure whether a specific item is taxed, the Comptroller's website has a detailed list of taxable and exempt items, or you can ask the retailer before you buy.
How Sales Tax Affects Your Budget
Sales tax is invisible until you reach the register, which is why many people are surprised by the final total. A $100 purchase in an 8.25 percent tax area costs $108.25—the tax adds $8.25 to your bill. On a $1,000 purchase, that is $82.50 extra. Over a year, the cumulative effect is significant, especially if you live in a high-tax area.
When you are comparing prices between stores or cities, remember to factor in the tax rate. A slightly cheaper item in a lower-tax area might actually cost less overall. If you are planning a major purchase like furniture or appliances, knowing your exact local rate lets you calculate the true cost before you commit. Some people near city or county borders shop strategically in lower-tax areas for big-ticket items, though the savings only matter if the price difference is substantial enough to justify the drive.
Frequently Asked Questions
What is the highest sales tax rate in Texas?
The highest combined rate is 8.875 percent, found in a few locations where the state rate (6.25 percent), city rate, county rate, and special district rates all stack together. Most areas max out around 8.25 percent. You can check your specific location on the Comptroller's website.
Do I pay sales tax on groceries in Texas?
No. Unprepared groceries—food you take home and cook—are exempt from sales tax. This includes bread, milk, meat, vegetables, and canned goods. However, prepared foods like deli items, hot foods, and restaurant meals are taxed.
Is sales tax added to online orders from Texas retailers?
Yes, if the retailer has a physical location in Texas or meets sales thresholds, they must collect Texas sales tax on orders shipped to Texas addresses. Large retailers like Amazon and Walmart do this automatically. Smaller sellers may not, but the tax is technically owed.
Are services like haircuts or car repairs taxed in Texas?
No. Services—labor and informed—are generally not subject to sales tax in Texas. A haircut, car repair, plumbing work, or dental cleaning do not have sales tax added. You only pay sales tax on physical products.
Can I look up the sales tax rate for a specific address?
Yes. The Texas Comptroller of Public Accounts website has a sales tax rate lookup tool where you can enter your ZIP code, city, or street address and see the exact combined rate for that location, broken down by state, city, county, and special district.