The Dallas sales tax rate is 8.25 percent, the highest combined rate Texas law allows. That total is three taxes stacked: 6.25 percent to the state, 1 percent to the City of Dallas, and 1 percent to Dallas Area Rapid Transit (DART).1City of Dallas. Tax Information You’ll see the same 8.25 percent at the register whether you’re buying a sofa, paying a cable bill, or checking out online with a Dallas shipping address.
Texas caps local sales tax at 2 percent on top of the state rate, and Dallas already fills that cap between its city tax and DART.2State of Texas. Texas Code Tax Code 151.051 – Sales Tax Imposed There’s no county sales tax layered on and no room to add one. Cross the city line and the combined rate can shift depending on which local jurisdictions apply.
What the 8.25 Percent Applies To
Physical Goods
The tax covers tangible personal property, which Texas defines broadly as anything you can see, weigh, measure, feel, or touch. Furniture, electronics, appliances, clothing, sporting goods, computer programs, and prepaid calling cards all qualify. Unless a specific exemption applies, the full 8.25 percent gets added to the sale.3Texas Comptroller of Public Accounts. Sales and Use Tax
Taxable Services
Texas taxes 17 broad categories of services. The ones Dallas residents run into most often include telecommunications, cable and streaming video, repair and maintenance of personal property, real property repair and remodeling, data processing, security services, and personal services like laundry and dry cleaning.4Texas Comptroller of Public Accounts. Taxable Services Motor vehicle repair is a notable exception; labor on car repairs is not subject to sales tax.
One recent change: as of July 1, 2025, internet access service is no longer taxable in Texas. If your internet is bundled with a taxable service like cable TV or phone, the taxable portion still owes tax, but a provider with records showing a reasonable split only collects on the taxable piece.4Texas Comptroller of Public Accounts. Taxable Services
Digital Products and Software
Software as a service (SaaS) subscriptions are taxable as data processing services, but Texas exempts 20 percent of the charge, so you effectively pay tax on 80 percent of your SaaS bill. Streaming video services fall under the cable television category and are fully taxable. Digital downloads of software, music, and e-books can be taxable depending on how they’re delivered and whether they qualify as tangible personal property under Texas definitions.4Texas Comptroller of Public Accounts. Taxable Services
What’s Exempt
Groceries
Most food you buy to prepare at home is exempt. The exemption covers cereals, dairy, meat, fish, eggs, fruits, vegetables, snack items like chips and granola bars, and bakery items. Tax applies again to food sold ready to eat, including hot meals, deli sandwiches, and anything from a restaurant or cafeteria counter inside a grocery store.5State of Texas. Texas Code Tax Code 151.314 – Food and Food Products Soft drinks, candy, and ice are taxable even on grocery shelves.6Legal Information Institute. 34 Texas Administrative Code 3.293 – Food; Food Products; Meals; Food Service
Healthcare
Prescription drugs dispensed by a licensed practitioner are exempt, and so is insulin whether or not you have a prescription. Over-the-counter drugs carrying a “Drug Facts” panel under federal labeling rules are also exempt. On the equipment side, braces, hearing aids, prosthetic devices, corrective lenses, hospital beds, blood glucose test strips, wound care dressings, adult and children’s diapers, and baby wipes all escape the tax.7Cornell Law Institute. 34 Texas Code 3.284 – Drugs, Medicines, Medical Equipment, and Devices These exemptions apply to both the state and local portions.
The Annual Sales Tax Holiday
Texas runs a back-to-school sales tax holiday once a year, and in 2026 it falls on August 7 through August 9. During that weekend, qualifying items are completely exempt from state and local tax, so Dallas shoppers save the full 8.25 percent.8Texas Comptroller of Public Accounts. Sales Tax Holiday
The qualifying categories share a $100-per-item price ceiling:
- Clothing and footwear under $100, excluding specialty athletic gear, accessories like jewelry and handbags, and rentals or alterations.
- Student backpacks under $100, including wheeled backpacks and messenger bags.
- A specific list of qualifying school supplies, not a blanket category.
Computers, software, and textbooks do not qualify. Shipping and handling count toward the $100 threshold, so a $96 shirt with $5 shipping would exceed the limit and owe tax. Layaway purchases count if you either make the final payment during the holiday weekend or place the item on layaway then.8Texas Comptroller of Public Accounts. Sales Tax Holiday
Online Purchases
Buy something online and ship it to Dallas, and you owe the same 8.25 percent. The practical question is who collects it. Major platforms including Amazon, eBay, Etsy, and Walmart Marketplace are classified as marketplace providers under Texas law and must collect and remit tax on behalf of their third-party sellers.9Texas Comptroller of Public Accounts. Remote Sellers and Marketplace Frequently Asked Questions You’ll see the tax at checkout just like at a physical store.
Out-of-state sellers that don’t go through a marketplace have to collect Texas tax once they exceed $500,000 in gross Texas revenue over the preceding 12 calendar months.9Texas Comptroller of Public Accounts. Remote Sellers and Marketplace Frequently Asked Questions Smaller remote sellers below that threshold may not collect it, in which case the buyer technically owes an equivalent 8.25 percent use tax on the purchase.
Calculating the Tax
Multiply the pre-tax price by 0.0825. A $50 purchase adds $4.13 in tax for a $54.13 total. A $250 purchase adds $20.63. On a $100 item, the tax is exactly $8.25. To work backward from a receipt total, divide by 1.0825: a $108.25 receipt means $100 in goods and $8.25 in tax.
Deducting Sales Tax on Your Federal Return
Texas has no state income tax, so Dallas residents who itemize can deduct state and local sales tax on Schedule A instead of income tax. You can either save every receipt and add up actual sales tax paid, or use the IRS’s optional sales tax tables, which estimate the deduction based on income, family size, and local rates. Big-ticket purchases such as a car or major appliance can be added to the table amount using actual receipts.10Internal Revenue Service. Use the Sales Tax Deduction Calculator
The federal SALT deduction, which combines sales tax, property tax, and other state and local taxes, is capped. For the 2026 tax year the cap is $40,400 for most filers and $20,200 for married filing separately, after the One Big Beautiful Bill Act raised the limit from the previous $10,000. Many Dallas households hit the cap on property taxes alone before sales tax enters the picture, but the deduction still matters for renters and for homeowners with lower property tax bills.