The sales tax rate in Keller, Texas is 8.25%, the highest combined rate allowed anywhere in the state. That rate applies to most retail purchases of goods and to a specific list of taxable services within city limits. It’s built from the 6.25% Texas state sales tax plus a full 2% in local taxes layered on top.1State of Texas. Texas Tax Code Section 151.051 – Sales Tax Imposed2Texas Comptroller of Public Accounts. Sales and Use Tax
Where the 8.25% Comes From
The state’s 6.25% is the same no matter where in Texas you shop. Local jurisdictions can add up to 2% on top, and Keller uses every bit of that cap. The city’s 2% share is split four ways:
- 1.0% for general city operations and administration.
- 0.5% for the Keller Development Corporation, a 4B economic development tax voters approved in 1992, restricted to recreational facilities.
- 0.25% for the Crime Control and Prevention District, reauthorized by voters in 2021 and set to expire in October 2037.
- 0.25% for street maintenance, reauthorized in November 2023 and set to expire in November 2027, restricted to maintaining streets that existed when voters approved the tax.
The current 8.25% combined rate took effect in April 2008.3City of Keller. Sales Tax
What You Pay 8.25% On
Everyday Goods
Most physical items you buy in Keller carry the full rate. Clothing, electronics, furniture, appliances, and building materials are all taxable tangible personal property. If you can carry it out of the store or have it shipped home, assume it’s taxed at 8.25% unless an exemption clearly applies.
Taxable Services
Texas taxes a defined list of services rather than services in general. Cable, satellite, and streaming video programming are taxable. So are telecommunications, data processing, laundry and dry cleaning, and certain repair and remodeling work on nonresidential buildings.4Texas Comptroller of Public Accounts. Taxable Services
Home Repair vs. Commercial Work
Labor to repair, remodel, or restore a home is not subject to sales tax. The same work on a commercial building is fully taxable, with sales tax applied to the total charge for labor and materials.5Texas Comptroller of Public Accounts. Real Property Repair and Remodeling A kitchen remodel on your house should come with no sales tax on the labor line. The same contractor working on a storefront charges 8.25% across the full invoice.
What’s Exempt
Groceries
Staple groceries are tax-free in Texas. Flour, sugar, bread, milk, eggs, fruits, and vegetables are all exempt.6Texas Comptroller of Public Accounts. Grocery and Convenience Stores The line gets drawn at prepared food: anything sold heated, sold with eating utensils, or ready to eat immediately is taxable.7Cornell Law Institute. 34 Texas Code 3.293 – Food; Food Products; Meals; Food Service A raw chicken from the meat case is exempt. The rotisserie chicken from the deli counter is taxable. That’s why your grocery receipt shows tax on some items and not others.
Prescriptions and Medical Devices
Prescription medications for humans or animals are exempt, and insulin is exempt whether or not it’s prescribed. Braces, hearing aids, prosthetic devices, corrective lenses, orthopedic appliances, and their replacement parts are also exempt.8Cornell Law Institute. 34 Texas Code 3.284 – Drugs, Medicines, Medical Equipment, and Devices Over-the-counter medications bought without a prescription generally are not exempt.
Qualifying Nonprofits
Nonprofits can buy items tax-free when the purchase is necessary to their exempt function, but federal 501(c) status alone doesn’t do it. The organization must apply separately for a Texas sales tax exemption through the Comptroller.9Texas Comptroller of Public Accounts. Guidelines to Texas Tax Exemptions
Cars Are Different
Vehicle purchases don’t follow the 8.25% rule. Texas motor vehicle sales tax is a flat 6.25% of the sales price minus any trade-in allowance, with no local add-on.10Texas Comptroller of Public Accounts. Motor Vehicle – Sales and Use Tax A vehicle brought into Texas from another state owes the same 6.25% use tax, with credit given for sales tax already paid elsewhere. You pay it at the county tax office when you title the vehicle, not at the dealership checkout.
Online Orders
Most big online retailers now collect the full 8.25% when shipping to a Keller address. Texas requires marketplace providers like Amazon and eBay to collect and remit state and local tax on sales made through their platforms.11Texas Comptroller of Public Accounts. Marketplace Providers and Marketplace Sellers The gap shows up with smaller out-of-state sellers who don’t collect Texas tax. When no tax is charged, you technically owe the 8.25% as use tax, and consumers without a sales tax permit can file a use tax return directly with the Comptroller.12Texas Comptroller of Public Accounts. Online Orders – Texas Purchasers and Sellers For small purchases, most people don’t bother. For a large piece of furniture or equipment, it’s a real obligation.
Tax-Free Weekends
Keller residents get three annual tax-free shopping windows. The back-to-school holiday runs August 7 through August 9 in 2026, covering most clothing, footwear, school supplies, and backpacks priced under $100 per item. Shipping and handling count toward that $100 threshold, so a $95 pair of shoes with $6 shipping lands at $101 and doesn’t qualify.13Texas Comptroller of Public Accounts. Sales Tax Holiday
The ENERGY STAR and water-efficient products holiday runs May 23 through May 25 in 2026. ENERGY STAR air conditioners priced at $6,000 or less, refrigerators at $2,000 or less, ceiling fans, dishwashers, dehumidifiers, and clothes washers qualify. WaterSense-labeled showerheads, bathroom faucets, and irrigation controls are included, along with residential-use lawn and garden items like drip-irrigation hoses, mulch, and plants.14Texas Comptroller of Public Accounts. Sales Tax Holidays for Water-Efficient and ENERGY STAR Products