Texas has a state sales tax of 6.25%, but your total rate depends on local taxes in your county and city
The state sales tax in Texas is 6.25%. However, most Texans pay more than that because counties and cities add their own local sales taxes on top. Your actual rate ranges from 6.25% (state only, in a few unincorporated areas) to as high as 8.25% or more, depending on where you live and shop. The total you pay is the combination of state tax plus any local taxes that explore to that specific location.
When you buy something in Texas, the tax is calculated at the point of sale — the store's register, the online checkout, or the gas pump. The seller is responsible for collecting the tax and sending it to the state and local tax authorities. You do not have to calculate it yourself; the receipt shows the breakdown.
Key Takeaways
- Texas state sales tax is 6.25%, but most cities and counties add local taxes that raise your total rate to between 7% and 8.25%.
- Local tax rates vary by location, so the same item costs different amounts in tax depending on which city or county you shop in.
- You can find your exact local rate by entering your address on the Texas Comptroller of Public Accounts website or by asking a store in your area.
- Groceries, prescription medications, and certain medical equipment are exempt from sales tax in Texas, even though other items are not.
How local taxes are added to the state rate
Texas allows counties and cities to add their own sales taxes on top of the state rate. A county might add 0.5% to 1%, and a city within that county might add another 0.5% to 1%. These are called local option sales taxes, and they are voted on by residents in each area. Not every county or city uses them, which is why rates vary so widely across the state.
For example, if you shop in an unincorporated area of a county with no local tax, you pay 6.25%. If you shop in a city that has added 1% and the county has added 0.5%, you pay 7.75%. The same purchase in a different city might be taxed at a different rate. This is why two grocery stores in different parts of the same county can charge different sales tax amounts.
The Texas Comptroller of Public Accounts maintains a database of all local tax rates by location. You can search by zip code or address on their website to find your exact rate. Many tax software programs and online retailers also look up the correct rate automatically based on the shipping or billing address.
What items are exempt from sales tax in Texas
Not everything you buy in Texas is subject to sales tax. Groceries — food you prepare at home — are exempt. This includes bread, milk, vegetables, meat, and canned goods. However, prepared food, restaurant meals, and items like candy, soda, and hot food from a deli counter are taxed.
Prescription medications are also exempt from sales tax in Texas. Over-the-counter medications like aspirin or cold medicine are taxed, but prescriptions filled by a pharmacist are not. Medical equipment prescribed by a doctor — such as wheelchairs, hearing aids, or diabetic supplies — may be exempt depending on the specific item and how it is classified.
Clothing and shoes are taxed in Texas, unlike in some other states. Children's clothing is not treated differently. Items like diapers, baby formula, and other baby products are taxed as regular goods. If you are unsure whether a specific item is taxed, ask the cashier or check the receipt after purchase — it will show which items were taxed and which were not.
Finding your exact sales tax rate
The easiest way to find your rate is to visit the Texas Comptroller of Public Accounts website and use their sales tax rate lookup tool. Enter your zip code or full address, and the tool will show you the combined state and local rate for that location. The rate shown is what you will pay on taxable items.
You can also call a local business in your area — a grocery store, gas station, or retail shop — and ask them what the sales tax rate is. They deal with it every day and can tell you when ready. Your city or county tax assessor's office can also provide this information.
Keep in mind that rates can change if a city or county votes to add or remove a local tax. These changes are usually announced in advance, but it is worth checking the current rate if you have not looked it up in a year or two. Online retailers and major stores update their systems automatically, so you will see the correct rate at checkout.
Sales tax on online purchases and out-of-state orders
If you order something online from a retailer that has a physical location in Texas, or from a large national retailer, Texas sales tax is usually added to your order based on the delivery address. The retailer collects the tax and sends it to the state, just as they would for an in-store purchase.
If you order from a small out-of-state seller with no Texas presence, sales tax may not be added at checkout. However, Texas law requires you to pay use tax on those purchases — a tax equal to the sales tax rate in your area. In practice, most individual shoppers do not pay use tax on small purchases, but it is technically owed. Large purchases or business orders are more likely to be tracked.
When you receive a package, no additional tax is charged. The tax, if owed, is either already included in the price you paid or is your responsibility to report on your tax return. For most household shopping, the retailer handles this automatically.
Sales tax on services and special situations
Most services in Texas are not subject to sales tax. Haircuts, car repairs, plumbing, legal information, and medical services are generally not taxed. However, some services are taxed, and the rules can be specific. For example, car rental is taxed, but vehicle repair is not. Pest control services are taxed in some situations but not others, depending on how they are classified.
If you are buying a service and are unsure whether tax applies, ask the business before you pay. They should be able to tell you whether the charge includes tax or if tax will be added. Your receipt will show whether tax was collected.
Resale certificates are used by businesses that buy items to resell. If you have a resale certificate, you do not pay sales tax on those purchases — the tax is paid later when the item is sold to the final customer. This is only for businesses, not for individual shoppers.
Frequently Asked Questions
What is the sales tax rate in Houston, Dallas, Austin, and San Antonio?
Rates vary by specific location within each city. Houston is in Harris County and typically has a combined rate around 8.25%. Dallas is in Dallas County with rates around 8.25%. Austin is in Travis County with rates around 8.25%. San Antonio is in Bexar County with rates around 8.125%. However, different neighborhoods and zip codes within these cities may have slightly different rates, so check the Texas Comptroller website for your exact address.
Do I pay sales tax on used items or private sales?
Sales tax applies to used items sold by a business — a used car lot, thrift store, or online marketplace like eBay if the seller is a business. Private sales between individuals typically do not have sales tax collected, though the buyer may owe use tax. For used cars, the tax is based on the purchase price, not the original price.
Is there sales tax on gasoline in Texas?
Yes. Gasoline is subject to Texas sales tax plus a state excise tax. The sales tax rate at the pump is the same combined rate as anywhere else in your location. The excise tax is a separate per-gallon charge set by the state and is included in the price shown on the pump.
Can I get a refund of sales tax I paid?
No. Sales tax is not refundable once paid. If you return an item to a store, the refund will exclude the tax you paid on it — you get back the pre-tax price. If you buy something and then do not use it, you cannot recover the tax portion of what you spent.
Do military personnel stationed in Texas get a sales tax exemption?
No. Active-duty military members pay the same sales tax as civilians in Texas. Some states offer military exemptions, but Texas does not. Veterans and military retirees also pay regular sales tax on most purchases.