The sales tax rate in Midlothian, Texas is 8.25 percent, the maximum any Texas city is allowed to charge. It applies to most retail goods and to a defined list of taxable services bought within city limits, and it combines a 6.25 percent state tax with a 2.00 percent local tax.
How the 8.25 Percent Breaks Down
Every taxable sale in Midlothian carries two layers. The state collects 6.25 percent under Texas Tax Code Chapter 151, and that portion is the same everywhere in Texas.1Texas Constitution and Statutes. Texas Code Tax Code Title 2 Subtitle E Chapter 151 – Limited Sales, Excise, and Use Tax The Texas Comptroller of Public Accounts handles collection and distribution.2Texas Comptroller of Public Accounts. Sales and Use Tax
Texas law caps the local add-on at 2.00 percent across all overlapping local jurisdictions.3State of Texas. Texas Tax Code Section 321.101 – Tax Authorized Midlothian uses the full 2.00 percent, split three ways:4Midlothian, TX – Official Website. Budget and Tax Rate Information
- 1.00 percent to the City of Midlothian for general municipal operations including public safety, street maintenance, and administrative services.
- 0.50 percent to Midlothian Economic Development for industrial recruitment, business retention, and infrastructure projects.
- 0.50 percent to the Midlothian Community Development Corporation for parks, recreational facilities, and other quality-of-life projects.
What Gets Taxed at 8.25 Percent
Most tangible goods purchased in Midlothian carry the full 8.25 percent rate: electronics, furniture, clothing, building materials, and household items. If you can hold it and it isn’t specifically exempt, it’s almost certainly taxable.
Texas also taxes 17 categories of services. The ones Midlothian residents and businesses run into most often are telecommunications, repair and remodeling of personal property, repair and remodeling of real property, data processing, security services, and cable television.5State of Texas. Texas Tax Code Section 151.0101 – Taxable Services If a service isn’t on the statutory list, it isn’t taxed. Most professional services, including legal and accounting work, fall outside the list.
What’s Exempt From Sales Tax
Groceries and Food for Home Consumption
Food products meant for home preparation and consumption are exempt. That covers bread, milk, eggs, meat, fruits, vegetables, cereals, sugar, flour, and similar staples.6State of Texas. Texas Tax Code Section 151.314 – Food and Food Products Snack items such as chips, granola bars, and popcorn also qualify. Prepared food sold ready to eat from restaurants, delis, or food trucks is taxable, and candy and soft drinks are taxable even at the grocery store.7Texas Comptroller of Public Accounts. Grocery and Convenience Stores
Medicines and Medical Supplies
Prescription drugs, insulin, and over-the-counter medicines labeled with an FDA-required “Drug Facts” panel are exempt.8State of Texas. Texas Tax Code Section 151.313 – Health Care Supplies That covers prescription antibiotics along with common cold medicine and pain relievers off the shelf. Vitamins and dietary supplements do not qualify.
Motor Vehicles
Cars trip people up. Vehicles are subject to a 6.25 percent state motor vehicle sales tax but not to local sales taxes, so a vehicle purchase is taxed at 6.25 percent, not 8.25 percent.9Texas Comptroller of Public Accounts. Motor Vehicle Sales Tax
Nonprofits and Resale Purchases
Recognized nonprofits and government entities can buy tax-free by presenting a valid exemption certificate. Businesses buying inventory for resale can do the same by giving their supplier a Texas Sales and Use Tax Resale Certificate (Form 01-339).10Texas Comptroller of Public Accounts. Texas Sales and Use Tax Forms The resale exemption only covers items the business plans to resell. Office supplies for a retailer’s own use are still taxable.
Annual Sales Tax Holidays
Texas runs two tax-free weekends each year that apply in Midlothian. They cover in-store, online, and phone orders as long as payment is made during the window.
Emergency Preparation Supplies
In 2026, this holiday runs April 25 through April 27. Portable generators under $3,000 are tax-free, along with emergency ladders and hurricane shutters under $300. Smaller items under $75 also qualify, including batteries, flashlights, first aid kits, fire extinguishers, smoke detectors, weather radios, and fuel containers.11Texas Comptroller of Public Accounts. Emergency Preparation Supplies Sales Tax Holiday
Back-to-School
The 2026 back-to-school holiday runs August 7 through August 9. Most clothing, footwear, school supplies, and backpacks priced under $100 per item are exempt. There’s no cap on qualifying clothing, but backpacks are limited to 10 per customer without an exemption certificate.12Texas Comptroller of Public Accounts. Sales Tax Holiday
If You Run a Business in Midlothian
Any business selling taxable goods or services in Midlothian needs a Texas sales tax permit before collecting tax. The permit is free, applications go through the Comptroller’s office, and collecting tax without a permit is a criminal offense.13Texas Comptroller of Public Accounts. Sales Tax Permit Requirements
The Comptroller assigns each permit holder a filing frequency: monthly, quarterly, or yearly. Monthly returns are due by the 20th of the following month. Quarterly returns are due April 20, July 20, October 20, and January 20. Yearly filers report the prior year by January 20. If a due date falls on a weekend or holiday, it moves to the next business day. Businesses that file and pay on time can keep 0.5 percent of the tax they collected as a discount, and prepayers can claim an additional 1.25 percent on top of that.2Texas Comptroller of Public Accounts. Sales and Use Tax