The sales tax rate in Brownsville, TX is 8.25%. That total is made up of Texas’s 6.25% state sales tax plus a 2% city sales tax, and it is the highest combined rate allowed anywhere in the state.1State of Texas. Texas Tax Code 151.051 – Sales Tax Imposed2Texas Comptroller of Public Accounts. Sales and Use Tax It applies to most retail purchases of goods and to a specific list of services inside city limits.
How the 8.25% Breaks Down
Every taxable sale in Texas carries the 6.25% state rate.1State of Texas. Texas Tax Code 151.051 – Sales Tax Imposed Local jurisdictions can add up to 2% on top, and state law caps the combined total at 8.25%.3State of Texas. Texas Tax Code 321.101 – Tax Authorized
In Brownsville, that full 2% local share goes to the city. There is no separate county tax or transit authority tax layered on.4Texas Comptroller of Public Accounts. City Sales and Use Tax So on a taxable dollar, 6.25 cents go to the state and 2 cents go to the City of Brownsville.
What the Rate Applies To
The 8.25% rate applies to most physical goods sold at retail: clothing, furniture, electronics, appliances, and the rest of what Texas calls “tangible personal property.”5State of Texas. Texas Tax Code 151.009 – Tangible Personal Property
Services are taxed only when they appear on the state’s statutory list. Telecommunications, security monitoring, credit reporting, data processing, debt collection, landscaping, and real property repair all carry the full 8.25%.6State of Texas. Texas Tax Code 151.0101 – Taxable Services Services that aren’t on the list, such as legal and accounting work, are not taxed.
What’s Exempt
Groceries and Food
Most food you prepare at home is exempt. Bread, produce, meat, dairy, eggs, and cereal ring up tax-free, and so do snack items like chips and candy.7State of Texas. Texas Tax Code 151.314 – Food and Food Products
Prepared food is taxable. Restaurant meals, heated deli items, and food the seller assembles for immediate eating all get the 8.25%.8Texas Comptroller of Public Accounts. Grocery and Convenience Stores A bag of raw chicken is tax-free; a rotisserie chicken from the same store is not.
Prescription Drugs and Medical Supplies
Prescription medications dispensed by a licensed practitioner are exempt, and insulin is always exempt whether or not you have a prescription.9State of Texas. Texas Tax Code 151.313 – Health Care Supplies Prosthetic devices, hearing aids, corrective lenses, and orthopedic braces are also exempt. Most of those devices don’t require a prescription to be tax-free; corrective lenses are the exception.10Legal Information Institute. 34 Texas Administrative Code 3.284 – Drugs, Medicines, Medical Equipment, and Devices
Manufacturing Equipment
Businesses that manufacture goods can avoid sales tax on equipment used directly in production, as long as that equipment causes a physical or chemical change in the product being made. Qualifying items include production machinery, pollution control equipment, required safety gear, and packaging supplies. Hand tools, forklifts, office equipment, and research-and-development materials don’t qualify.11Texas Comptroller of Public Accounts. Manufacturing Exemptions
The August Sales Tax Holiday
Texas holds an annual back-to-school sales tax holiday each August. Beginning in 2026, the holiday runs from the first Friday in August through the following Sunday. Qualifying clothing, footwear, school supplies, and backpacks sold for less than $100 per item are completely exempt from state and local sales tax during that weekend.12Texas Comptroller of Public Accounts. Sales Tax Holiday
There is no limit on how many qualifying items you can buy, though backpacks are capped at 10 per purchase without an exemption certificate. Jewelry, watches, luggage, handbags, and specialty athletic gear don’t qualify. Any single item priced at $100 or more is taxed at the full 8.25% even during the holiday.12Texas Comptroller of Public Accounts. Sales Tax Holiday
Online and Out-of-State Purchases
If you buy something online or from an out-of-state seller that doesn’t charge Texas sales tax, you still owe 8.25% as use tax. The use tax rate matches the sales tax rate exactly and applies at the combined state-plus-local rate for wherever you receive the goods.13Texas Comptroller of Public Accounts. Local Sales and Use Tax Frequently Asked Questions If the seller charged tax at a lower out-of-state rate, you owe Texas the difference.
Individuals who aren’t registered for a Texas sales tax permit report and pay use tax on Form 01-156, due by the 20th of the month after you bring the item into Texas.14Texas Comptroller of Public Accounts. 01-156 Use Tax Return In practice, most large online retailers and marketplaces already collect Texas sales tax at checkout, so the 8.25% is usually built into what you pay.15Texas Comptroller of Public Accounts. Remote Sellers
Calculating the Tax on a Purchase
Multiply the price of your taxable items by 0.0825. A $50 pair of shoes comes to $54.13. A $200 appliance comes to $216.50. The tax is figured on the combined total of taxable items in a single transaction, not item by item. When the math produces a fraction of a cent, half a cent or more rounds up, less than half rounds down.16Texas Comptroller of Public Accounts. Federal Government Ending Production of the Penny