Calculate Your Sales Tax
How Texas Sales Tax Works
State Rate
Texas charges a flat 6.25% state sales tax on all taxable goods and services statewide. This rate is set by the Texas Legislature and has been stable since 1990.
Local Rate
Cities, counties, transit authorities, and special purpose districts can each add a local rate. The combined local rate cannot exceed 2%, bringing the max total to 8.25%.
Max Combined
Most major Texas cities (Houston, Dallas, Austin, San Antonio) collect the maximum 8.25%. A few cities collect less. Unincorporated areas pay only the 6.25% state rate.
Legal Authority
Texas sales tax is governed by Chapter 151 of the Texas Tax Code. The Texas Comptroller of Public Accounts administers and enforces compliance statewide.
What Is (and Isn't) Taxable in Texas?
✓ Taxable Items
- Most tangible personal property
- Clothing & apparel
- Electronics & computers
- Furniture & home goods
- Restaurant meals & prepared foods
- Amusement & entertainment services
- Telecommunications services
- SaaS / digital products & downloads
- Shipping charges (on taxable goods)
- Repair & installation services
- Pest control, landscaping services
- Motor vehicles (6.25% motor vehicle tax)
✗ Exempt Items
- Unprepared grocery foods (bread, milk, produce, meat)
- Prescription drugs & insulin
- Medical devices (qualifying)
- Agricultural feed, seed & fertilizer
- Manufacturing machinery & equipment
- Newspapers & qualifying periodicals
- Custom software development
- Most professional services (legal, accounting)
- Educational services
- Resale purchases (with Form 01-339)
- Items purchased by qualifying nonprofits
- Government purchases
⚖️ Based on Texas Tax Code Chapter 151. Always verify with the Texas Comptroller for your specific situation.
Frequently Asked Questions
What is the Texas sales tax rate in 2025–2026?
The Texas state sales tax rate is 6.25%. With local taxes added, the maximum combined rate is 8.25%. Most major cities in Texas charge the full 8.25%.
How do I calculate sales tax on a purchase in Texas?
Multiply your purchase price by the applicable tax rate. For example, a $100 item in Houston (8.25%): $100 × 0.0825 = $8.25 tax, total $108.25. Use our calculator above for instant results.
Are groceries taxed in Texas?
Most unprepared grocery items — bread, milk, fresh produce, eggs, meat, and pantry staples — are exempt from Texas sales tax. However, prepared foods, restaurant meals, candy, and certain snacks are taxable.
Is clothing taxable in Texas?
Yes, clothing and apparel are generally taxable in Texas at the applicable combined rate. The exception is the annual back-to-school tax holiday (August 8–10, 2025), during which clothing items under $100 are exempt.
Are online purchases subject to Texas sales tax?
Yes. Texas requires online retailers to collect sales tax if they have nexus in Texas. Remote sellers with $500,000+ in annual Texas sales must collect tax. Many opt for the simplified 8% flat rate for remote sales.
Is shipping taxable in Texas?
Yes. Shipping and delivery charges are taxable in Texas when they are part of the sale of a taxable item. If the underlying item is exempt, the shipping charge may also be exempt.
What is the penalty for late sales tax filing in Texas?
Penalties begin at 5% of the tax due and increase by 5% for each additional month late, up to a maximum of 10%. Interest also accrues on unpaid balances.
How do I get a Texas sales tax exemption certificate?
Use Form 01-339 (Texas Sales and Use Tax Exemption Certificate). Buyers who qualify (resellers, nonprofits, government entities, manufacturers) provide this to sellers to make tax-exempt purchases.
Learn More About Texas Sales Tax
Dive deeper with our comprehensive guide covering Texas sales tax rules, exemptions, filing deadlines, and compliance tips for businesses and individuals.
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