Texas has no state income tax, but sales tax varies by location from 8.25% to 8.875%
Texas charges a state sales tax of 6.25% on most purchases. On top of that, your city and county add their own local sales taxes. The total you pay depends on where you live or shop. In some Texas cities, the combined rate is 8.25%. In others, it reaches 8.875%. A few places fall in between.
The state rate is fixed. The local portion changes by county and city. This means a $100 purchase costs different amounts in Dallas than in Houston, and different again in a small town outside either city. Groceries, clothing, and most everyday items are taxed at the full combined rate. A few categories — like prescription drugs and some medical equipment — are exempt.
Key Takeaways
- Texas state sales tax is 6.25%, but your total rate also includes city and county taxes that range from 2% to 2.625%.
- The combined rate in your area determines what you pay; Dallas, Houston, Austin, and San Antonio each have different totals.
- Groceries and prescription drugs are not taxed in Texas, but restaurant meals and prepared foods are.
- You can find your exact local rate by entering your address on the Texas Comptroller's website or asking a local retailer.
How state and local taxes stack together
The 6.25% state rate applies everywhere in Texas. Your county then adds a tax between 0.5% and 1.25%. Your city adds another 0% to 1.625% on top of that. Some special districts — like transit authorities or economic development zones — may add a small amount more, though this is rare for most shoppers.
The result is that no two Texas cities have exactly the same rate. Austin's combined rate is 8.25%. Dallas is 8.25%. Houston is 8.25%. San Antonio is 8.125%. Smaller cities and rural areas may be lower or higher depending on their specific county and city choices. The only way to know your exact rate is to check your address.
What is and is not taxed in Texas
Groceries — unprepared food you cook at home — are not taxed. This includes meat, produce, dairy, bread, and canned goods. Restaurant meals, fast food, and prepared foods from a grocery store deli are taxed at the full rate. Coffee from a coffee shop is taxed. Coffee beans you buy to brew at home are not.
Prescription drugs are not taxed. Over-the-counter medicines like aspirin and cold medicine are taxed. Clothing and shoes are taxed. Medical equipment like wheelchairs and hearing aids may be exempt depending on the specific item and how it is classified. Services — haircuts, car repairs, plumbing — are generally not taxed, though labor charges on taxable goods sometimes are.
Digital goods like e-books, music downloads, and streaming subscriptions are taxed. Software licenses are taxed. Gasoline is taxed at the pump, but the tax is separate from sales tax — it is a fuel excise tax set by the state.
Sales tax rates in major Texas cities
| City | County | Combined Rate |
|---|---|---|
| Austin | Travis | 8.25% |
| Dallas | Dallas | 8.25% |
| Fort Worth | Tarrant | 8.25% |
| Houston | Harris | 8.25% |
| San Antonio | Bexar | 8.125% |
| Arlington | Tarrant | 8.25% |
| Corpus Christi | Nueces | 8.25% |
| Plano | Collin | 8.25% |
Most large Texas cities cluster around 8.25%. San Antonio is slightly lower at 8.125%. Smaller cities and rural areas can vary more widely. Some counties in West Texas and the Panhandle have lower combined rates because they chose not to add the maximum local tax. A few areas near the coast or in urban regions may be at or near the 8.875% ceiling.
How to find your exact local rate
The Texas Comptroller of Public Accounts maintains a sales tax rate lookup tool on its website. You enter your street address, city, and ZIP code, and it returns your exact combined rate. This is the most reliable method because it accounts for special districts and boundary lines that can create different rates on the same street.
You can also call your city or county tax assessor's office and ask for the combined rate. Retailers in your area — grocery stores, pharmacies, big-box stores — can tell you the rate they charge. Online retailers may charge the rate for their location or for yours, depending on their policy and whether Texas law requires them to collect tax.
Why rates differ between cities and counties
Texas allows each city and county to set its own local sales tax rate within state limits. A city council votes to add a local tax to fund schools, roads, or other services. A county commissioners court does the same. Neither is required to add the maximum allowed. Some choose lower rates to attract business. Others add the full amount because they need the revenue.
When a city and county overlap — which is almost everywhere — you pay both. If you live outside city limits but inside a county, you pay only the county rate. If you live in an unincorporated area with no special districts, you pay the lowest possible combined rate. This is why rural Texas sometimes has lower sales tax than cities, though not always.
Sales tax on online and out-of-state purchases
If you buy from an online retailer with a physical location in Texas, the retailer must collect Texas sales tax. If the retailer has no Texas presence, they may not collect tax at the time of purchase. However, Texas law requires you to pay use tax on those purchases — it is the same rate as sales tax, just collected differently. Most people do not pay use tax voluntarily, and enforcement is limited.
Large online retailers like Amazon, Walmart, and Target now collect Texas sales tax on orders shipped to Texas addresses because they have warehouses or offices in the state. Smaller retailers or those based entirely outside Texas may not. If you are unsure whether tax was charged, check your receipt or order confirmation.
Frequently Asked Questions
Is Texas sales tax the same everywhere in the state?
No. The state rate is 6.25% everywhere, but cities and counties add different amounts. Combined rates range from 8.25% to 8.875% in most populated areas, with some rural counties lower. You must check your specific address to know your rate.
Are groceries taxed in Texas?
Unprepared groceries — meat, produce, bread, canned goods — are not taxed. Restaurant meals, fast food, and prepared foods from a deli counter are taxed at the full rate. The distinction is whether you cook it yourself or someone else prepares it for you.
Do I pay sales tax on online purchases from out-of-state sellers?
Large retailers with a Texas presence must collect tax. Smaller out-of-state sellers may not. If tax was not collected, Texas law says you owe use tax, but it is rarely enforced for individual purchases. Check your order confirmation to see if tax was charged.
What is not taxed in Texas besides groceries?
Prescription drugs, most medical equipment, and services like haircuts and repairs are not taxed. Clothing and shoes are taxed. Over-the-counter medicines are taxed. The rules can be specific to each item, so when in doubt, ask the retailer.