The items exempt from sales tax in Texas fall into a handful of clear categories: most groceries, prescription and many over-the-counter medicines, qualifying medical devices, equipment used in commercial farming or manufacturing, and most professional services. Four annual tax holidays add temporary exemptions for clothing, school supplies, emergency gear, and energy- and water-efficient products. Texas charges 6.25 percent at the state level, and local jurisdictions can add up to 2 percent for a combined rate as high as 8.25 percent,1Texas Comptroller. Sales and Use Tax so knowing what falls outside that charge matters at the register.
Groceries and Food for Home Preparation
Most food you buy to prepare at home is exempt under Tax Code Section 151.314. That covers cereals, milk, meat, poultry, fish, eggs, fruits, vegetables, bread, spices, coffee, tea, and snack foods like chips, nuts, popcorn, granola bars, and trail mix.2State of Texas. Texas Tax Code Chapter 151 – Limited Sales, Excise, and Use Tax Ice cream, sherbet, frozen yogurt, and bakery items such as cakes, cookies, and tortillas also qualify.
Several grocery-aisle items stay taxable. Soft drinks (carbonated or not), candy, and alcoholic beverages are taxed wherever you buy them.2State of Texas. Texas Tax Code Chapter 151 – Limited Sales, Excise, and Use Tax Vitamins and dietary supplements sold as food are also excluded from the food exemption, though some may qualify under the separate healthcare rules.
Food shifts into the taxable column when it is sold as a prepared meal. If a store employee heats it for you, even a frozen sandwich, it is taxed. Food sold with eating utensils like plates, forks, spoons, cups, straws, or chopsticks is taxable; napkins, wax paper, and foam clamshells do not count as utensils. Coffee and tea become taxable when sold hot or in a cup with a straw. Anything from a deli counter, restaurant section, or lunch counter inside a grocery store is treated as a taxable prepared meal.3Texas Comptroller. Grocery and Convenience Stores
Medicines and Medical Supplies
Prescription drugs are fully exempt under Tax Code Section 151.313. The same exemption reaches over-the-counter drugs and medicines that carry a “Drug Facts” panel required by FDA regulations, with no prescription needed.2State of Texas. Texas Tax Code Chapter 151 – Limited Sales, Excise, and Use Tax Pain relievers, cold medicine, allergy pills, antiseptic creams, hand sanitizer, nicotine patches, and anti-asthmatic products are common examples.4Texas Comptroller. Over-the-Counter Drugs, Medicines, First Aid Supplies and Supplements Supplements and vitamins without a Drug Facts label stay taxable.
Wound care supplies are exempt without a prescription. Adhesive bandages, gauze rolls and pads, medical tape, liquid bandage products, and corn cushions can all be bought tax-free.4Texas Comptroller. Over-the-Counter Drugs, Medicines, First Aid Supplies and Supplements Corrective lenses, hearing aids, prosthetic devices, and orthopedic braces are generally exempt as well because they treat a disability or diagnosed condition rather than serve a general wellness purpose.
Agricultural, Ranch, and Timber Equipment
Machinery and equipment used in commercial agricultural or timber production are exempt under Tax Code Sections 151.316 and 151.3162. Tractors, harvesters, seeds, fertilizers, and crop-protection chemicals all qualify when used in operations that grow or harvest goods for sale. Personal gardening and recreational landscaping are not covered.5State of Texas. Texas Tax Code Section 151-316 – Agricultural Items
Livestock medications, vaccines, and other therapeutic preparations prescribed by a veterinarian are always exempt and do not even require a separate exemption certificate. You just give the retailer the written veterinary prescription or authorize the retailer to receive it directly from the vet.6Texas Comptroller. Agricultural and Timber Exemptions
For other agricultural and timber purchases, you must give the seller a valid exemption certificate at the time of sale. Using the exemption for non-qualifying purposes, such as buying equipment for personal use under an agricultural certificate, can lead to back-tax assessments and penalties.
Manufacturing Machinery
Texas exempts machinery and equipment that directly cause a physical or chemical change to a product being manufactured. Under Tax Code Section 151.318, the item must be necessary to the manufacturing, processing, or fabrication of tangible goods intended for sale.2State of Texas. Texas Tax Code Chapter 151 – Limited Sales, Excise, and Use Tax Materials consumed during production, such as chemicals, gases, or catalysts, also qualify.
The exemption stops at the production line. Office furniture, delivery vehicles, and storage equipment stay taxable because they do not take part in transforming raw materials into a finished product. Misclassifying support equipment as production machinery can trigger significant back-tax assessments in a Comptroller audit.
Services That Are Not Taxed
Most services in Texas are exempt. Only 16 categories are taxable, and professional services like legal, accounting, medical, and consulting work are not among them. The taxable list includes data processing, telecommunications, cable television, pest control, janitorial services, landscaping, nonresidential property repair and remodeling, debt collection, credit reporting, security services, and motor vehicle parking.7Texas Comptroller. Taxable Services
Two taxable categories get a partial break: 20 percent of the charge for data processing services and 20 percent of the charge for information services are exempt. Data processing covers web hosting, website maintenance, data storage, offsite backup, and software-as-a-service products. Internet access service is fully exempt under the federal Internet Tax Freedom Act and was formally removed from the state’s list of taxable services effective July 1, 2025.7Texas Comptroller. Taxable Services Streaming video and video-on-demand are taxed as cable television services.
Nonprofit and Exempt Organization Purchases
Qualifying nonprofits can buy items tax-free when the purchase supports their exempt purpose. Eligible categories include charitable, religious, and educational organizations, volunteer fire departments, chambers of commerce, youth athletic organizations, and nonprofits holding federal tax exemptions under IRC Sections 501(c)(3), (4), (8), (10), or (19).8Texas Comptroller. Nonprofit and Exempt Organizations – Purchases and Sales The exemption is granted under Tax Code Section 151.310, and the organization must apply for and receive an exemption determination from the Comptroller before buying tax-free.
Annual Sales Tax Holidays
Four weekends each year suspend sales tax on specific categories. Online, phone, and mail orders qualify as long as you pay during the holiday window, even if delivery arrives later.
Back-to-School Weekend
The 2026 back-to-school holiday runs Friday, August 7, through midnight Sunday, August 9.9Texas Comptroller. Sales Tax Holiday Clothing, footwear, school backpacks, and school supplies priced under $100 per item are exempt.10Cornell Law School. 34 Texas Admin Code 3.365 – Sales Tax Holiday-Clothing, Shoes and School Supplies The $100 cap applies per item, not to the total basket. Specialized athletic gear and anything priced at $100 or above stays taxable.
Emergency Preparation Supplies
The 2026 emergency preparation holiday runs Saturday, April 25, through midnight Monday, April 27.11Texas Comptroller. Emergency Preparation Supplies Sales Tax Holiday Price caps vary by item:
- Portable generators priced under $3,000
- Emergency ladders and hurricane shutters priced under $300
- Priced under $75: batteries, flashlights, fire extinguishers, first aid kits, fuel containers, smoke detectors, carbon monoxide detectors, nonelectric coolers, portable radios (including weather band and two-way), axes, hatchets, tarps, ground anchor systems, tie-down kits, reusable ice products, mobile phone batteries and chargers, and nonelectric can openers
ENERGY STAR Weekend
The 2026 ENERGY STAR holiday runs Saturday, May 23, through midnight Monday, May 25. Qualifying items must carry the ENERGY STAR label. Air conditioners priced at $6,000 or less and refrigerators priced at $2,000 or less qualify, along with ceiling fans, light bulbs, clothes washers, dishwashers, and dehumidifiers with no price cap. Delivery charges count toward the price for air conditioners and refrigerators; if shipping pushes the total over the cap, tax applies to the entire price. Water heaters, clothes dryers, freezers, stoves, and wine refrigerators do not qualify even with an ENERGY STAR label.12Texas Comptroller. ENERGY STAR Sales Tax Holiday
Water-Efficient Products
The water-efficient products holiday shares the same Memorial Day weekend, May 23 through May 25, 2026. Any product displaying a WaterSense label or logo qualifies. Additional water-conserving items qualify when bought for residential use: soaker and drip-irrigation hoses, sprinkler moisture controls, mulch, rain barrels, permeable ground cover, drought-resistant plants and grasses, and water-saving surfactants.13Texas Comptroller. Water-Efficient Products Sales Tax Holiday
A Note on Motor Vehicles
Cars and trucks sit outside the regular sales tax system, so the standard exemptions don’t apply. Texas imposes a separate 6.25 percent motor vehicle sales tax on the purchase price minus any trade-in allowance. Buy a vehicle in another state and bring it to Texas, and you owe 6.25 percent use tax with a credit for sales or use tax already paid elsewhere. New residents who move to Texas with a vehicle previously registered in their name pay a flat $90 new-resident tax instead. An even exchange of vehicles carries a $5 tax, and a gifted vehicle costs $10.14Texas Comptroller. Motor Vehicle – Sales and Use Tax