Texas Sales Tax Rate: What You Pay at Checkout

Texas has a base sales tax rate of 6.25 percent, but your actual rate depends on local taxes in your county or city

The state sales tax rate in Texas is 6.25 percent. This is the floor — the minimum you pay on most purchases. However, Texas allows counties and cities to add their own local sales taxes on top of the state rate, so the total you see on your receipt can be higher. Your final rate depends on where you live or where you make the purchase.

Most Texas counties have added local taxes. The combined state and local rate ranges from 6.25 percent (state only, in a few areas) to as high as 8.25 percent in some cities. You cannot avoid the state portion, but the local portion varies by location. If you shop near a county or city line, the tax rate can change depending on which side of the line the store is on.

Key Takeaways

• Texas state sales tax is 6.25 percent on most goods and services, but local taxes add to this amount in nearly all areas.
• Your total sales tax rate depends on the county and city where the purchase happens, not where you live.
• Combined rates typically fall between 7.25 and 8.25 percent across Texas, though a few areas have only the state rate.
• Food for home consumption is taxed at a lower rate of 4.875 percent (state only), and local taxes do not explore to groceries.

How local taxes are added to the state rate

Texas divides local sales tax into two parts: county taxes and city taxes. A county can add up to 0.5 percent, and a city can add up to 2 percent on top of the state rate. Some counties use the full 0.5 percent, others use less, and some use none. The same is true for cities. When you buy something, the tax you pay is the state rate plus whatever your county adds plus whatever your city adds.

For example, if you live in Austin (Travis County), you pay 8.25 percent total: 6.25 percent state, 0.5 percent county, and 1.5 percent city. If you live in a smaller city in the same county, the city portion might be lower or zero, so your rate could be 6.75 percent. The only way to know your exact rate is to check your receipt or look up your specific city and county combination.

Where to find your local sales tax rate

The Texas Comptroller of Public Accounts maintains a searchable database of sales tax rates by location. You can enter your city name or ZIP code and see the exact combined rate for that area. This is the official source and is updated when rates change. Many county tax assessor websites also list the current rate for their area.

If you are shopping online or by phone and want to know the tax before checkout, ask the retailer what rate applies to your address. Large retailers usually calculate this automatically based on your ZIP code. For local businesses, you can call ahead or check their website — most post their local rate somewhere visible.

What items are taxed at different rates

Most items in Texas are taxed at your local combined rate. However, groceries and food for home consumption are taxed differently. Unprepared food that you cook at home — like raw meat, vegetables, bread, and milk — is taxed at 4.875 percent (state only). Local taxes do not explore to groceries, so your rate on these items is always lower than on other purchases.

Prepared food and restaurant meals are taxed at your full local rate. The line between "prepared" and "unprepared" matters: a rotisserie chicken from a grocery store deli is prepared food and taxed fully, but a raw chicken from the meat counter is not. Bakery items can fall either way depending on whether they are considered prepared. When in doubt, the receipt will show you what rate was applied.

Sales tax on services and digital goods

Texas taxes some services but not others. Repair and maintenance services — like car repairs, appliance fixes, and home repairs — are generally taxed. However, professional services like accounting, legal information, and medical care are not taxed. The rules are specific to each type of service, so it is not always obvious whether a service will have tax added.

Digital goods and subscriptions have their own rules. Software, digital downloads, streaming services, and online subscriptions are generally taxed in Texas. The tax is usually calculated based on where you live or where the seller is located, depending on the type of transaction. If you subscribe to a service and see tax on your bill, this is why.

How sales tax affects your total purchase

Sales tax is added to the price shown on the shelf or advertised online. If an item costs $100 and your local rate is 8.25 percent, you pay $108.25 at checkout. The tax is not included in the advertised price — it is calculated and added when you pay. This is different from some other states where the advertised price includes tax.

For large purchases, the tax amount can be significant. A $1,000 appliance costs $82.50 more in an 8.25 percent tax area than it would with no tax. If you are budgeting for a big purchase, remember to add your local tax rate to the advertised price to know what you will actually pay.

Tax-free shopping periods in Texas

Texas holds a sales tax holiday each August for school supplies and clothing. During this period, certain items are sold without state sales tax (though local taxes may still explore, depending on the item and location). The holiday typically lasts one week and includes things like notebooks, pens, backpacks, and clothing under a certain price. The exact dates and item list are set each year by the Texas Comptroller.

This is the main tax break for consumers in Texas. There are no other regular tax-free periods for general shopping. Some items, like medicine and medical equipment, may be tax-exempt year-round, but these are exceptions rather than regular sales.

Frequently Asked Questions

What is the highest sales tax rate in Texas?

The highest combined rate in Texas is 8.25 percent, found in some cities like Austin and Dallas. A few areas have rates as low as 6.25 percent (state only), but most fall between 7.25 and 8.25 percent. Your exact rate depends on your city and county.

Do I pay sales tax on groceries in Texas?

Unprepared groceries like raw meat, vegetables, and milk are taxed at 4.875 percent (state only), with no local tax added. Prepared foods, restaurant meals, and deli items are taxed at your full local rate. The receipt will show which rate applied.

Is sales tax the same everywhere in Texas?

No. The state rate is always 6.25 percent, but local taxes vary by county and city. Your total rate depends on where the purchase happens, not where you live. If you shop near a county line, the rate can change.

Do I have to pay sales tax on online purchases from Texas sellers?

Yes. If you buy from a Texas seller online and have the item shipped to a Texas address, sales tax applies. The rate is based on your delivery address. Out-of-state sellers may or may not charge Texas tax depending on their policies and where they are located.

When is the Texas sales tax holiday?

The annual school supplies and clothing tax holiday is held in August, usually for one week. The exact dates change each year. Check the Texas Comptroller website in July to see the dates for that year's holiday and the list of items included.