The Texas sales tax rate tops out at 8.25 percent. That combined figure is made up of a flat 6.25 percent state tax plus up to 2 percent in local taxes added by cities, counties, transit authorities, and special-purpose districts.1Texas Comptroller of Public Accounts. Sales and Use Tax Not every location charges the full amount, because each local jurisdiction chooses whether to adopt its share, but most populated areas hit the cap.
How the Rate Is Built
The 6.25 percent state portion is set by Tax Code Section 151.051 and applies to every taxable sale anywhere in Texas.2State of Texas. Texas Tax Code Section 151.051 – Sales Tax Imposed On top of it, local taxing jurisdictions can layer their own sales taxes, but the combined local rate cannot exceed 2 percent at any address.1Texas Comptroller of Public Accounts. Sales and Use Tax
In a rural county that has not adopted a local tax, you might pay only 6.25 percent. Cross into a city that also sits inside a transit authority district, and the rate climbs to the full 8.25 percent. The rate that applies to any given transaction depends on where the sale takes place, or, for deliveries, where the item is shipped.
What You Pay Sales Tax On
The tax applies broadly to physical goods sold at retail: furniture, electronics, clothing, sporting goods, and most other tangible items you can carry out of a store.
Texas also taxes 17 categories of services, which surprises people who have shopped in states that exempt most services. The ones most consumers run into include telecommunications, cable television and internet access, security and alarm monitoring, credit reporting and debt collection, repair and remodeling of personal or real property, and personal services like parking and storage.3State of Texas. Texas Code TAX 151.0101 – Taxable Services If you hire a locksmith, pay for alarm service, or have furniture reupholstered, sales tax applies at your local combined rate.
Motor Vehicles Are an Exception
Cars and trucks are subject to a 6.25 percent state motor vehicle sales tax, but local sales taxes do not apply to vehicle purchases. The rate stays at 6.25 percent rather than climbing to 8.25 percent, no matter where in Texas you buy.4Texas Comptroller of Public Accounts. Motor Vehicle Sales Tax
What’s Exempt
Grocery Food
Most food bought for home preparation is exempt. That covers bread, milk, eggs, meat, produce, cereals, and snack items like chips, popcorn, and granola bars.5State of Texas. Texas Tax Code Section 151.314 – Food and Food Products The exemption ends the moment food is prepared and ready to eat. Deli sandwiches, heated meals, restaurant plates, and anything sold from a vending machine are all taxable.6Texas Comptroller of Public Accounts. Grocery and Convenience Stores Candy, carbonated soft drinks, and ice fall outside the grocery exemption too, which trips up shoppers who assume they count as food.
Medicine and Medical Devices
Prescription drugs and insulin are tax-free. So are over-the-counter medicines labeled with a Drug Facts panel, meaning pain relievers, cold medicine, and similar items qualify without a prescription. The exemption also covers hearing aids, prosthetic devices, braces, corrective lenses, hospital beds, blood glucose test strips, wound dressings, adult and children’s diapers, and baby wipes. Therapeutic devices prescribed or dispensed by a licensed healthcare provider, and the related supplies, are generally exempt as well.7State of Texas. Texas Code TAX 151.313 – Exemptions
The August Sales Tax Holiday
Every August, Texas suspends sales tax for one weekend on clothing, footwear, school supplies, and backpacks priced under $100 per item. In 2026, the holiday runs Friday, August 7 through Sunday, August 9.8Texas Comptroller of Public Accounts. Sales Tax Holiday There is no cap on how many qualifying items you can buy, but each individual item must ring up below $100, including any shipping or handling the seller adds.
Plenty of purchases do not qualify. Jewelry, watches, handbags, luggage, computers, software, textbooks, and athletic or protective-use clothing are all excluded. Alterations and embroidery on clothing remain taxable through the weekend.8Texas Comptroller of Public Accounts. Sales Tax Holiday The savings on any one item are modest, but families outfitting kids for the school year can save meaningfully across a full trip.
Online and Out-of-State Purchases
When you buy from a seller who does not collect Texas sales tax, you owe the same tax yourself. Texas calls it “use tax,” and it applies at the same combined rate (up to 8.25 percent) on items you store, use, or consume in the state.1Texas Comptroller of Public Accounts. Sales and Use Tax
In practice, most large online retailers now collect Texas tax at checkout. Since the Supreme Court’s 2018 decision in South Dakota v. Wayfair, Texas has required remote sellers whose gross Texas revenue exceeds $500,000 over the preceding 12 calendar months to get a Texas permit and start collecting.9Texas Comptroller of Public Accounts. Remote Sellers and Marketplace Frequently Asked Questions Marketplace platforms like Amazon, eBay, and Etsy have collected on their sellers’ behalf since October 2019, so tax on those transactions is usually already handled at checkout.
Where use tax still catches people is smaller out-of-state vendors, private sales, and auctions. If you owe less than $1,000 in use tax for the year and don’t hold a sales tax permit, you file the Comptroller’s Form 01-156 and pay by January 20 of the following year. Once your use tax liability hits $1,000 or more, you must file by the 20th of the month after you cross that threshold.10Texas Comptroller of Public Accounts. Use Tax
Deducting Texas Sales Tax on Your Federal Return
Because Texas has no state income tax, the only state and local tax (SALT) deduction available to Texas residents on a federal return is sales tax. If you itemize on Schedule A, you can choose between deducting state income taxes or state sales taxes; for Texans, sales tax is the only option that produces anything.11Internal Revenue Service. Instructions for Schedule A (Form 1040)
Two methods are available. The simpler one uses the IRS optional sales tax tables, which estimate your deduction based on income, family size, and local tax rates. The alternative is tracking every dollar of sales tax you actually paid across the year, which usually produces a bigger deduction if you made major purchases like appliances or building materials. The federal SALT deduction is capped at $40,400 for most filers in 2026 ($20,200 if married filing separately), with the cap phasing down for taxpayers whose modified adjusted gross income is above $505,000. Most Texas households will land well below those limits, but knowing the option exists keeps money from being left on the table.