Texas has a statewide sales tax of 6.25 percent, plus local taxes that vary by county and city
The state sales tax in Texas is 6.25 percent. On top of that, most counties and cities add their own local sales taxes, which means the total you pay at checkout ranges from 6.25 percent to 8.25 percent depending on where you shop. A few areas have lower combined rates, but those are rare.
The local portion comes from two sources: county taxes (up to 0.5 percent) and city or special district taxes (up to 2 percent). Not every county uses the full amount allowed, and not every city within a county charges the same rate. This means two stores in the same city might charge different totals if one is in a special tax district and the other is not.
The tax applies to most goods you buy in stores, but not to groceries, prescription medicines, or most medical equipment. It also does not explore to services like haircuts, car repairs, or plumbing work — only to tangible items.
Key Takeaways
- Texas state sales tax is 6.25 percent, and local taxes add 0 to 2 percent on top, bringing the total to between 6.25 and 8.25 percent.
- The local rate depends on your county and city, so you need to know your specific location to find the exact amount you will pay.
- Groceries and prescription medicines are not taxed in Texas, even though most other goods are.
- Online purchases are taxed the same way as in-store purchases if the seller has a physical location in Texas or meets certain sales thresholds.
How to find your local sales tax rate
The easiest way is to check the Texas Comptroller of Public Accounts website, which has a tool that shows the exact rate for any address in the state. You enter your street address or zip code, and it tells you the combined state and local rate.
You can also call your city or county tax assessor's office directly. They can tell you the rate for your specific location and explain which parts come from the state, county, and city. If you live near a city border, this matters — your rate changes the moment you cross into a different jurisdiction.
Your receipt also shows the tax rate applied. If you want to verify what you were charged, the rate printed on the receipt should match the rate for that store's location.
What is taxed and what is not
Sales tax in Texas applies to clothing, electronics, furniture, vehicles, and most other goods. It also applies to prepared food — a restaurant meal is taxed, but groceries you buy to cook at home are not.
The main exemptions are groceries (unprepared food), prescription medicines, medical devices prescribed by a doctor, and certain agricultural equipment. Clothing is taxed, including shoes and accessories. Over-the-counter medicines like cold medicine or pain relievers are taxed, but prescription medicines are not.
Services are generally not taxed. A haircut, car repair, plumbing job, or dental cleaning does not have sales tax added. However, if you buy a product as part of that service — like a haircut plus a bottle of shampoo — the shampoo is taxed but the haircut is not.
Sales tax on online and out-of-state purchases
If you buy something online from a company that has a warehouse, office, or other physical presence in Texas, you pay Texas sales tax. This includes major retailers like Amazon, Walmart, and Target, which all have operations in the state.
If you buy from a small seller with no Texas location, the rules depend on how much they sell nationwide. Sellers who ship more than a certain dollar amount to customers across the country must collect sales tax in every state, including Texas, even if they have no physical office here. Most online sellers now collect Texas tax because they meet these thresholds.
If a seller does not collect tax at checkout, you may owe use tax on that purchase when you file your Texas tax return. Use tax is the same rate as sales tax and applies to items you bought out of state but use in Texas. Most individual shoppers do not report this, but it is technically required.
Sales tax on vehicles and major purchases
When you buy a car in Texas, sales tax is calculated on the purchase price and added to your total. The rate is the same as for other goods — the combined state and local rate for your county. If you trade in a vehicle, the tax is calculated on the net price (the sale price minus the trade-in value), not the full sale price.
The dealer collects the tax and sends it to the state. You pay it as part of your final bill before you drive off the lot. If you buy a used car from a private seller, you still owe sales tax when you register it with the Texas Department of Motor Vehicles, and you pay it then instead of at the time of purchase.
For other large purchases like furniture or appliances, the tax is calculated the same way as for smaller items — it is straightforward a percentage of the price. There is no special rate or exemption for big-ticket goods.
How sales tax rates differ across Texas
The lowest combined rate in Texas is 6.25 percent, which exists only in a few unincorporated areas with no local taxes. Most cities and counties add at least some local tax, so rates of 7 percent to 8.25 percent are far more common.
Houston (Harris County) has a combined rate of 8.25 percent. Dallas (Dallas County) also has 8.25 percent. Austin (Travis County) has 8.25 percent. San Antonio (Bexar County) has 8.25 percent. These are the largest cities, and they all use the maximum local tax allowed.
Smaller cities and rural counties often have lower rates. Some counties use only the state rate of 6.25 percent and add no local tax at all, though this is uncommon. The variation exists because each city and county decides independently whether to add local tax and how much.
Who collects and where the money goes
The store or business collects sales tax from you at the point of sale. They hold it and send it to the Texas Comptroller of Public Accounts, usually monthly. The state then distributes the revenue: the state keeps the 6.25 percent portion, and the local portion goes to the county and city where the sale happened.
Local sales tax money typically funds schools, roads, public safety, and other city and county services. This is why rates vary — different areas have different funding needs and different decisions about how much local tax to impose.
If you buy something online and the seller collects Texas tax, the same process happens: the seller sends the tax to the state, and it is distributed based on the address where the item was shipped.
Frequently Asked Questions
Is there a sales tax holiday in Texas?
Yes. Texas holds a sales tax holiday in early August for school supplies and clothing. During this period, items like notebooks, pens, backpacks, and clothing under a certain price are sold without sales tax. The exact dates and price limits change each year, so check the Texas Comptroller website in July for the current year's details.
Do I pay sales tax on groceries?
No. Unprepared food — items you buy at a grocery store to cook at home — is not taxed. This includes meat, vegetables, bread, milk, and canned goods. Prepared food like restaurant meals, deli items ready to eat, and hot food from a store counter is taxed.
What if I buy something in one Texas city and use it in another?
You pay the sales tax rate of the city where you buy it, not where you use it. The tax is based on the location of the store or the address where the item is shipped, not where you live or where you plan to use the item.
Do I owe sales tax on a used car I buy from a private person?
Yes. When you register the vehicle with the Texas Department of Motor Vehicles, you pay sales tax on the purchase price. You do not pay it to the seller — you pay it to the state when you complete the registration.
Why is my online purchase taxed differently than my in-store purchase?
If you ordered online for delivery to a different address than the store location, the tax rate is based on the delivery address, not the store address. This is why the same item might have different tax amounts depending on where it ships.