Texas charges 6.25% state sales tax, plus local taxes that vary by city and county

The state sales tax in Texas is 6.25%. This is the baseline rate applied to most taxable purchases across the state. However, your actual tax rate at checkout depends on where you shop, because cities and counties can add their own local sales taxes on top of the state rate.

The combined rate you see on your receipt is state tax plus local tax. In some Texas cities, the total reaches 8.25% or higher. In others, it stays closer to 6.25%. There is no single "Texas sales tax rate" that applies everywhere — it changes by location.

Key Takeaways

  • Texas state sales tax is 6.25%, but your actual rate depends on local taxes added by your city and county.
  • Combined rates range from 6.25% to over 8.25% depending on where you live or shop.
  • You can find your exact local rate by entering your ZIP code on the Texas Comptroller's website or asking a retailer.
  • 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 tax at checkout, but you may owe it when you file taxes.

How local taxes stack on top of state tax

Texas allows cities and counties to impose their own sales taxes within their borders. A city might add 1%, a county might add 0.5%, and a special district (like a transit authority) might add another 0.125%. These stack on top of the 6.25% state rate.

For example, Austin residents pay 8.25% total: 6.25% state plus 2% local (split between the city and county). Houston residents pay 8.25% as well, but the breakdown is different. A small town outside a major city might have a combined rate of 6.5% or 7%.

The Texas Comptroller of Public Accounts maintains a searchable database where you can enter your ZIP code and see the exact combined rate for your location. This is the most reliable way to know what you will pay.

What items are not taxed in Texas

Not everything you buy is subject to sales tax. Groceries — items you buy at a grocery store to cook at home — are exempt. This includes bread, milk, vegetables, meat, and canned goods. Restaurant meals and prepared foods are taxed.

Prescription medications are not taxed. Over-the-counter medicines like aspirin or cold medicine are taxed, but prescriptions filled by a pharmacist are not. Some medical equipment, including certain mobility aids and diabetic supplies, is also exempt.

Clothing and shoes are taxed in Texas, unlike some other states. Children's clothing is not exempt. Services like haircuts, repairs, and labor are generally not subject to sales tax, though the parts or materials used might be.

Finding your exact local sales tax rate

The fastest way to find your rate is to visit the Texas Comptroller's website and use their sales tax rate lookup tool. Enter your ZIP code, and the tool shows you the combined state and local rate for that area.

You can also call a local retailer and ask what rate they charge, or check your last receipt — the tax rate is printed on it. If you are shopping in a different city or county, the rate will change, so it is worth checking before making a large purchase if the tax difference matters to your budget.

Keep in mind that rates can change when local voters approve new taxes or when existing taxes expire. The Comptroller's website is updated when these changes take effect, so checking there gives you the current rate rather than relying on an older receipt.

Sales tax on online and out-of-state purchases

Online retailers are required to collect Texas sales tax on purchases shipped to Texas addresses. Most major retailers (Amazon, Walmart, Target) do this automatically, and the tax appears in your total before checkout.

Some smaller online sellers, especially those based outside Texas, may not collect Texas tax at the point of sale. If you buy from an out-of-state seller and no tax is charged, you may owe the tax when you file your Texas tax return, though enforcement of this rule is inconsistent for individual purchases.

The safest approach is to assume that any purchase shipped to a Texas address should include Texas sales tax. If it does not, keep your receipt and note the amount, in case you need it later.

How sales tax affects your budget

Sales tax is not included in the price tags you see in stores — it is added at checkout. A $100 item in Austin costs $108.25 after tax, not $100. This matters when you are budgeting or comparing prices between states.

If you live near a state border, you might notice that shopping in a neighboring state with a lower tax rate saves money on large purchases. However, Texas law requires you to pay Texas tax on items you bring back into the state, though this is rarely enforced for personal purchases.

For businesses, sales tax is a significant cost factor. Retailers collect the tax from customers and send it to the state and local authorities. Understanding your local rate helps you predict the true cost of inventory and pricing decisions.

Frequently Asked Questions

What is the sales tax rate in my city?

Enter your ZIP code into the Texas Comptroller's sales tax rate lookup tool at comptroller.texas.gov. The tool shows your exact combined state and local rate. Rates vary widely across Texas, from 6.25% to over 8.25%, so checking your specific location is the only way to know for certain.

Do I pay sales tax on groceries in Texas?

No. Groceries — food you buy to prepare at home — are exempt from sales tax in Texas. This includes bread, produce, meat, dairy, and canned goods. Restaurant meals, prepared foods, and food eaten on premises are taxed.

Is clothing taxed in Texas?

Yes. Texas taxes clothing and shoes at the full sales tax rate. Unlike some states, there is no exemption for children's clothing or back-to-school purchases. The only clothing-related exemption is for certain medical garments prescribed by a doctor.

Do I owe Texas sales tax on items I buy online from out of state?

Major online retailers collect Texas tax automatically on shipments to Texas. Smaller sellers may not. If tax was not charged at checkout, you may owe it on your tax return, though this is rarely enforced for individual purchases. Keep receipts for large purchases just in case.

Can the sales tax rate change in my area?

Yes. Local sales tax rates change when cities or counties vote to approve new taxes or when existing taxes expire. Check the Texas Comptroller's website before making large purchases if you have not checked your rate recently, as it may have changed since your last visit.