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

The Texas state sales tax is 6.25 percent on most goods and services. However, that is not the rate you pay at checkout. Texas cities and counties can add their own local sales taxes on top of the state rate, so your actual rate ranges from 6.25 percent to as high as 8.25 percent depending on where you live and what you buy.

The combined rate you see on a receipt is the sum of the state tax, any city tax, and any county tax that applies to that specific location and item. Some items are taxed differently — groceries, for example, are taxed at a lower rate in some cases — and a few items are not taxed at all.

Key Takeaways

  • Texas state sales tax is 6.25 percent, but cities and counties add local taxes that raise your total rate to between 6.25 and 8.25 percent.
  • The rate you pay depends on your location and what you are buying, so the same item costs different tax amounts in different Texas cities.
  • Groceries, prescription drugs, and some medical devices are taxed at lower rates or not taxed at all.
  • Online purchases from out-of-state sellers are subject to Texas sales tax if the seller has a physical presence or meets sales thresholds in the state.

How local taxes stack on top of the state rate

Texas allows cities to add up to 2 percent in local sales tax, and counties can add up to 2 percent as well. Some cities and counties add less, and some add nothing. This means a city in one county might have a 7.25 percent rate while a city in another county has 8.25 percent.

To find your exact rate, you need to know both your city and your county. The Texas Comptroller of Public Accounts publishes a tax rate lookup tool on its website where you can enter your address and see the combined rate for that location. Rates can also vary within a city if different areas fall under different taxing jurisdictions.

Some Texas cities and counties also add special district taxes for specific purposes like public transportation or economic development. These are less common but can add another 0.5 percent or more to your total rate in certain areas.

What items are taxed differently or not at all

Most tangible goods are taxed at your full local rate, but some categories have different treatment. Groceries — food you buy to cook at home — are taxed at 4.875 percent statewide, which is lower than the standard rate. This lower rate applies regardless of local taxes added on top.

Prescription drugs and certain medical devices are not taxed at all in Texas. Over-the-counter medications and health products like vitamins are taxed at the full rate. Services like haircuts, repairs, and professional labor are generally taxed, though some services have exemptions.

Clothing and shoes are taxed at the full rate in Texas, unlike some other states that exempt them. Prepared food and restaurant meals are taxed at the full rate as well, even though groceries have a lower rate.

Sales tax on online and out-of-state purchases

If you buy something online from an out-of-state seller, Texas sales tax still applies if that seller has a physical presence in Texas — such as a warehouse, office, or store location. The seller is responsible for collecting and sending the tax to the state.

Sellers without a physical presence in Texas are required to collect sales tax if they meet a sales threshold. As of 2024, most online sellers must collect Texas sales tax if they have more than $600,000 in annual sales to Texas residents, though this threshold changes periodically.

If a seller does not collect Texas sales tax on your purchase, you may owe use tax — a tax on items you bring into Texas or have delivered to you. Most people do not pay use tax on individual purchases, but it is technically owed and applies to business purchases and large personal orders.

How to find the exact rate for your address

The Texas Comptroller of Public Accounts maintains an online sales tax rate lookup at comptroller.texas.gov. You enter your street address, city, and ZIP code, and the tool shows you the combined state, city, and county rate for that location.

Rates change when cities or counties vote to add or remove local taxes, so the rate you paid last year may not be the rate you pay this year. The Comptroller updates the lookup tool when changes take effect, usually on the first day of a month.

If you are a business owner or handle sales tax for a company, the Comptroller also publishes detailed tax rate tables by jurisdiction. These show the breakdown of state, city, and county portions so you can see exactly where each part of the tax goes.

Frequently Asked Questions

Is Texas sales tax the same everywhere in the state?

No. The state rate is 6.25 percent everywhere, but cities and counties add different amounts, so your total rate depends on your location. Two cities in different counties can have rates that differ by a full percentage point or more.

Do I pay sales tax on groceries in Texas?

Yes, but at a lower rate. Groceries are taxed at 4.875 percent statewide instead of the full local rate. This applies to food you buy to cook at home, not prepared food or restaurant meals.

What is use tax and do I have to pay it?

Use tax is owed on items you buy outside Texas and bring into the state, or on online purchases where the seller did not collect sales tax. Most individuals do not pay it on small personal purchases, but it is technically owed and is commonly paid by businesses on inventory and equipment.

Do I pay sales tax on services like haircuts or car repairs?

Yes, most services are taxed at your full local sales tax rate in Texas. This includes haircuts, repairs, cleaning, and professional labor. A few services have exemptions, but they are uncommon.

When do sales tax rates change in Texas?

Rates change when a city or county votes to add or remove local taxes. Changes typically take effect on the first day of a month. You can check the Comptroller's website to see if your rate has changed recently.