Texas Sales Tax Rates and What You Pay at Checkout

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

When you buy something in Texas, you pay at least 6.25 percent in state sales tax. That is the floor. Most Texas cities and counties add their own local sales tax on top of that, so your total rate is usually between 7.25 and 8.25 percent. The exact amount you pay depends on where you are standing when you swipe your card — different neighborhoods in the same city can have different rates if they fall into different tax districts.

Texas does not have a state income tax, which is why the state relies on sales tax to fund schools, roads, and local services. That means the sales tax you see at checkout funds both state and local government. The state keeps 6.25 percent of every dollar. The rest goes to your city, county, or a special district like a transit authority or hospital district.

Sales tax applies to most physical goods you buy — groceries, clothes, electronics, gas. It does not explore to services like haircuts or car repairs, and it does not explore to most prescription medications. Some items like food bought at a grocery store are taxed at a lower rate or not at all, depending on what they are.

Key Takeaways

• Texas state sales tax is 6.25 percent, but your total rate is higher because cities and counties add local taxes on top.
• Total sales tax rates in Texas range from 7.25 to 8.25 percent depending on your location, with some areas as high as 8.5 percent.
• The rate you pay can change block by block if you cross into a different tax district, so two nearby stores may charge different totals.
• Sales tax applies to most goods but not to services, and groceries are taxed at a lower rate than other items.

How local taxes stack on top of the state rate

Texas allows cities and counties to add their own sales tax, and most do. A city might add 1 percent, a county might add 0.5 percent, and a special district might add another 0.25 percent. You pay all three on top of the state 6.25 percent. The total you see on your receipt is the sum of all of them.

Some areas have higher local taxes than others. Austin and Houston have different rates. A town in one county will charge a different total than a town in a neighboring county. The Texas Comptroller of Public Accounts publishes a list of every tax district and its rate, but the easiest way to find your rate is to look at a recent receipt from a store near you, or to search "sales tax rate" plus your city name.

Special districts can also levy sales tax. A transit authority might add 0.5 percent to fund public transportation. A hospital district might add 0.25 percent. These stack on top of city and county taxes, which is why some areas reach 8.5 percent or higher.

What items are taxed and what are not

Most things you buy in a store are subject to sales tax — clothes, electronics, furniture, toys, books. The tax applies to the full price before any discount. If you buy something on sale, you pay tax on the sale price, not the original price.

Groceries are taxed at a lower rate. Unprepared food you take home to cook — bread, milk, vegetables, meat — is taxed at 0 percent in Texas. Food prepared for when ready consumption — a sandwich from a deli counter, a hot pizza, a drink from a coffee shop — is taxed at the full rate. The line between them matters: a rotisserie chicken from the grocery store deli is prepared food and is taxed; raw chicken from the meat counter is not.

Services are not taxed. A haircut, a car repair, a plumber's visit, a doctor's appointment — none of these are subject to sales tax. Prescription medications are not taxed. Over-the-counter medicines like aspirin or cold medicine are taxed. Clothing is taxed, but some states exempt children's clothing; Texas does not.

How sales tax appears on your receipt

When you check out, the cashier or the register shows you the subtotal, then adds the sales tax, then shows you the total you owe. The receipt breaks down the tax amount separately so you can see how much went to tax and how much went to the item itself. Online purchases shipped to Texas are also subject to sales tax, though the tax is calculated based on the address where the item is being delivered.

If you buy something in one Texas city and have it shipped to another Texas city, the tax rate that applies is the rate in the city where it is being delivered. If you buy online from an out-of-state seller and have it shipped to Texas, Texas sales tax still applies. The seller is responsible for collecting it, though some smaller sellers may not.

Why sales tax rates vary so much across the state

Texas gives cities and counties the power to set their own local tax rates within limits set by state law. A city council can vote to add a local sales tax to fund schools, roads, or other services. A county can do the same. This means every community can choose its own rate based on what it needs to fund.

Some areas have chosen higher rates because they have higher service costs or lower property tax bases. Others have chosen lower rates to attract businesses. The result is a patchwork of rates across the state. Two towns 20 miles apart can have rates that differ by a full percentage point.

Special districts add another layer. A school district might add 0.5 percent to fund schools. A transit authority might add 0.5 percent to fund buses. A hospital district might add 0.25 percent to fund emergency services. These are all optional — not every area has all of them — which is why rates vary so widely.

Finding the exact rate where you live or shop

The simplest way to find your sales tax rate is to look at a receipt from a store in your area. The receipt shows the total tax you paid and the subtotal, so you can calculate the percentage. If you bought a $10 item and paid $0.825 in tax, your rate is 8.25 percent.

You can also search the Texas Comptroller of Public Accounts website, which has a tax rate lookup tool. Enter your address or zip code and it shows you the rate for that location. Keep in mind that rates can change if you cross into a different city or county, or if a special district boundary runs through your area.

If you are shopping online, the seller should show you the tax rate that will explore at checkout before you complete your purchase. If you are buying from a Texas business, the rate shown should match the rate for your delivery address.

How sales tax differs from income tax in Texas

Texas has no state income tax. You do not pay a percentage of your wages to the state. Instead, Texas funds its government through sales tax, property tax, and other sources. This means you pay tax when you spend money, not when you earn it.

Federal income tax is separate from state and local sales tax. When you file your federal tax return, you report your income to the IRS. You do not report sales tax you paid — that is a state and local matter. Some people deduct state and local taxes on their federal return, but that is a different calculation and depends on your situation.

Frequently Asked Questions

Do I pay sales tax on groceries in Texas?

Unprepared groceries — raw meat, vegetables, bread, milk — are not taxed in Texas. Food prepared for when ready eating — deli sandwiches, hot pizza, rotisserie chicken — is taxed at the full rate. The key is whether the food is ready to eat when you buy it.

What is the highest sales tax rate in Texas?

Some areas in Texas have rates as high as 8.5 percent when state, local, and special district taxes are combined. The exact highest rate changes as districts adjust their taxes, so check your specific location using the Texas Comptroller lookup tool or a recent receipt.

Do I pay Texas sales tax on online purchases?

Yes, if you buy online from a seller and have it shipped to a Texas address, Texas sales tax applies. The tax rate is based on your delivery address. Some out-of-state sellers may not collect it, but you may owe it when you file your taxes.

Can the sales tax rate change where I live?

Yes. Cities, counties, and special districts can vote to raise or lower their local sales tax rates. Changes usually take effect on the first day of a month. If you live in an area where rates change, you will see the new rate on your next receipt.

Is sales tax the same in every Texas city?

No. Every city and county sets its own local tax rate, so rates vary across the state. Two cities 10 miles apart can have different totals. Check your specific city or zip code to find your exact rate.