TX (Texas Sales Tax) Calculators

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Texas imposes a state sales tax of 6.25% on most retail sales, leases, and rentals of taxable goods and some services. Local taxing entities (cities, counties, transit authorities, special purpose districts) may add up to 2% in local sales tax, bringing the maximum combined rate to 8.25%. Texas has no personal income tax, making sales tax a major revenue source. Understanding Texas sales tax is essential for businesses collecting and remitting tax, consumers making purchases, and anyone planning to start a business in the state.

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Texas Sales Tax Rates

  • State rate: 6.25%
  • Maximum local rate: 2.00% (cities, counties, transit, SPDs combined)
  • Maximum combined rate: 8.25%

Most major Texas cities: Houston 8.25%, Dallas 8.25%, Austin 8.25%, San Antonio 8.25%, Fort Worth 8.25%. Some smaller cities may have lower combined rates.

Calculating Texas Sales Tax

Tax = Price × 0.0825 (at 8.25% combined rate)

Total = Price × 1.0825

Example: $150.00 purchase in Austin (8.25%): Tax = $150 × 0.0825 = $12.38. Total = $162.38.

What Is Taxable in Texas?

Taxable: most retail merchandise, software, data processing, telecommunications, motor vehicles (6.25%), and some services. Not taxable (exempt): most food for home consumption (groceries), prescription drugs and OTC medicines, agricultural equipment and supplies, manufacturing equipment, some medical devices, and residential use of electricity and natural gas (residential energy is taxed at a reduced rate).

Business Obligations

Businesses with nexus in Texas must collect and remit sales tax to the Texas Comptroller. File frequency: monthly (over $500/month tax liability), quarterly, or annually. Register at comptroller.texas.gov. Online marketplace sellers must collect Texas tax on Texas-destination sales regardless of physical presence.

Glossary

Texas Sales Tax
6.25% state rate plus up to 2% local; maximum 8.25% combined; applies to retail sales of most goods and some services; no personal income tax in Texas.
Economic Nexus (Texas)
A remote seller's obligation to collect Texas sales tax based on exceeding $500,000 in Texas sales in the prior 12 months, regardless of physical presence; established post-Wayfair.
Texas Comptroller
The Texas state agency responsible for collecting state taxes, including sales and use tax; businesses register and file returns at comptroller.texas.gov.

Frequently Asked Questions

The Texas state sales tax rate is 6.25%. Local taxing entities (cities, counties, transit authorities, and special purpose districts) can add up to 2.0% in local tax, for a maximum combined rate of 8.25%. Most major Texas cities (Houston, Dallas, Austin, San Antonio) charge the full 8.25%. To calculate: multiply the purchase price by 0.0825 for the tax amount, or by 1.0825 for the total including tax. Check the Texas Comptroller's rate lookup tool for rates in specific zip codes.

Most food purchased for home preparation and consumption is exempt from Texas sales tax. Specifically: unprepared grocery items (bread, meat, produce, canned goods) are not taxed. However, prepared foods (restaurant meals, deli items sold for immediate consumption, hot food to go) are taxable. Soft drinks and candy are taxable even at grocery stores. Bottled water is exempt. When in doubt, items that have been heated, mixed, or prepared for immediate consumption are generally taxable; raw ingredients for home cooking are generally exempt.

Yes. Following South Dakota v. Wayfair (2018), Texas requires out-of-state sellers to collect and remit Texas sales tax if they exceed $500,000 in Texas sales in the previous 12 months (economic nexus). Texas-based sellers always have nexus. Online marketplace facilitators (Amazon, eBay, Etsy) are required to collect and remit sales tax on behalf of their third-party sellers for Texas-destination sales. Sellers on these platforms are generally not required to separately remit tax on those marketplace sales.

Key Texas sales tax exemptions: unprepared food for home consumption; prescription drugs (all); over-the-counter medicines; agricultural items (seeds, feed, farm equipment); manufacturing equipment and components used in production; resale purchases (with valid resale certificate); most medical devices with a prescription; residential electricity and natural gas (taxed at a reduced rate or exempt depending on service); nonprofit organizations (with exemption certificate); and certain educational purchases. Texas publishes detailed exemption information at comptroller.texas.gov.