Texas charges 6.25% state sales tax, plus local taxes that range from 0% to 2%
The state sales tax in Texas is 6.25%. This applies to most goods you buy at a store. However, your total sales tax is higher because Texas cities and counties add their own local taxes on top of the state rate. The combined rate you pay at the register ranges from 6.25% (state only, in a few areas) to as high as 8.25% depending on where you live.
Texas does not have a state income tax, which is why the state relies on sales tax to fund schools, roads, and other services. This means sales tax is a bigger part of how Texas residents pay for government services compared to states that tax income.
Key Takeaways
- Texas state sales tax is 6.25%, but your actual rate depends on local taxes added by your city and county.
- Local sales tax in Texas ranges from 0% to 2%, making combined rates between 6.25% and 8.25%.
- You can find your exact local rate by entering your zip code on the Texas Comptroller website or asking a store in your area.
- Groceries, prescription medications, and some medical equipment are exempt from sales tax in Texas.
- Online purchases from out-of-state sellers may not include Texas sales tax, but Texas law requires you to pay use tax on those items.
How local taxes add to the state rate
Texas allows cities and counties to add their own sales tax on top of the 6.25% state rate. A city might add 1%, and a county might add 0.5%, bringing your total to 7.75%. Some areas have no local tax at all, so you pay only the state rate of 6.25%. Other areas stack multiple local taxes and reach 8.25%.
The local rate depends on where the store is located, not where you live. If you buy something in a city with a higher local tax, you pay that city's rate. If you cross into a neighboring city with a lower rate, the tax drops. This is why two stores selling the same item in different parts of the same county can charge different sales tax amounts.
Finding your exact sales tax rate
The Texas Comptroller of Public Accounts maintains a sales tax rate lookup tool on its website. You enter your zip code or street address, and it shows you the exact combined rate for that location. This is the most reliable way to know what you will pay.
You can also call a store in your area and ask what their sales tax rate is. Any cashier or customer service desk can tell you the combined rate they charge. If you are shopping online and the seller is based in Texas, the rate shown at checkout should match your local rate.
What is and is not taxed in Texas
Most items you buy are subject to sales tax, including clothing, electronics, furniture, and household goods. However, Texas exempts certain items from sales tax. Groceries — food you cook at home — are not taxed. Prescription medications are exempt. Medical equipment like wheelchairs, walkers, and diabetic supplies are also exempt when prescribed by a doctor.
Restaurant meals and prepared food are taxed, even if you take them home. The difference is whether the food is ready to eat or raw ingredients. Seeds and plants you grow for food are exempt, but plants grown for decoration are taxed. Services like haircuts, repairs, and labor are generally not subject to sales tax in Texas, though some specific services have their own rules.
Sales tax on online and out-of-state purchases
If you buy something online from a Texas seller, sales tax is usually added at checkout based on your delivery address. If you buy from an out-of-state seller that does not collect Texas sales tax, Texas law requires you to pay use tax on that purchase. Use tax is the same rate as sales tax and covers items you bring into Texas or have delivered here.
Most people do not pay use tax voluntarily. However, if you make large purchases from out-of-state sellers, you may be asked to report and pay use tax when you file your Texas tax return. The Texas Comptroller can also audit businesses and individuals who make frequent out-of-state purchases without paying use tax.
How sales tax affects your budget
Sales tax adds up quickly on large purchases. A $1,000 appliance costs $1,062.50 to $1,082.50 depending on your local rate. Over a year, a family's total sales tax bill can be several hundred dollars. Because Texas has no income tax, residents pay a larger share of state revenue through sales tax than residents of states with income tax.
If you are budgeting for a major purchase, add your local sales tax rate to the listed price to see the true cost. Some stores show the total with tax included; others show the price before tax. Always ask or check the receipt to confirm what you are paying.
Frequently Asked Questions
What is the difference between sales tax and use tax?
Sales tax is charged when you buy something in a store or from a seller that collects it. Use tax is what you owe on items you buy from out-of-state sellers who do not collect Texas tax. Both rates are the same; use tax just applies to purchases where sales tax was not collected at the time of sale.
Do I pay sales tax on used items?
Sales tax applies to used items sold by businesses, including used car dealers and secondhand shops. If you sell something to another person privately, no sales tax is involved. The difference is whether the seller is a business or a private individual.
Are there any cities in Texas with no local sales tax?
Yes. A few small areas in Texas have only the 6.25% state rate with no local tax added. However, most populated areas have at least some local tax. The Texas Comptroller website shows the exact rate for any location.
Do I pay sales tax on a car purchase in Texas?
No. Vehicle sales are not subject to sales tax in Texas. However, you pay a motor vehicle sales tax when you register the vehicle, which is calculated on the purchase price. This is a separate tax handled through the Texas Department of Motor Vehicles.
Can I get a sales tax refund if I return something?
Yes. When you return an item and get a refund, the sales tax is refunded as well. The refund amount should match what you paid in tax on the original receipt. Keep your receipt to show the store the amount of tax you paid.