Texas › Taxes and pay › Sales tax
Texas sales tax: the rate, the exemptions and the surprises.
Every number sourced. Checked this month.
Texas makes up for having no income tax partly at the register. The state takes 6.25%, local governments can add up to 2%, and every city this site covers charges the full 8.25%. Groceries and medicine are exempt, but candy, soda, restaurant food and a long list of services are not. San Antonio reshuffled its local shares on January 1, 2026. Here is what you pay, where it goes, and when you can skip it.
Numbers last checked October 31, 2026How the rate is built
The state charges 6.25% on retail sales, leases and rentals of most goods, and on a list of taxable services. On top of that, cities, counties, transit authorities and special purpose districts (SPDs) can each levy their own piece, but together they can add no more than 2%. That is why the combined rate tops out at 8.25%. Inside a big city the local 2% is nearly always used up, so the question is not how much you pay but who gets it.
- City. Every city we cover takes at least 1%. Some take 1.5% or the full 2%, often with part earmarked for property tax relief, street repair or economic development.
- Transit. Six metropolitan transit authorities and a few other transit bodies collect sales tax, from 0.5% to 1%. Houston’s METRO, Dallas’s DART and Austin’s CapMetro each take a full 1%.
- County. Counties that levy a sales tax charge 0.5%. Harris, Dallas, Tarrant, Travis and Bexar are not on the Comptroller’s county list.
- Special districts. Crime control, emergency services, library and development districts take the rest in some places. Fort Worth’s crime control district takes 0.5%.
Outside city limits you may pay less, because there is no city share. The rate follows the address where you take delivery, so look up a specific address with the Comptroller’s sales tax rate locator.
Combined rate in every city we cover
Rates are percentages of the sale price. City, transit and SPD shares come from the Comptroller’s city rate list (page updated Sep 24, 2026), its transit rate list and its county list, all checked Oct 31, 2026, unless the source column says otherwise. A dash means that layer has no sales tax in the city.
| City | City | County | Transit | SPD | Combined (incl. 6.25% state) | Source |
|---|---|---|---|---|---|---|
| Big six | ||||||
| Houston | 1% | — | 1% METRO | — | 8.25% | Greater Houston Partnership; METRO from Comptroller |
| Dallas | 1% | — | 1% DART | — | 8.25% | Comptroller |
| Fort Worth | 1% | — | 0.5% Trinity Metro | 0.5% crime control | 8.25% | Comptroller |
| Austin | 1% | — | 1% CapMetro | — | 8.25% | Comptroller |
| San Antonio | 1.125% (incl. 0.125% Pre-K 4 SA) | — | 0.5% VIA + 0.375% ATD | — | 8.25% | Comptroller Jan 2026 update and transit list; City of San Antonio |
| El Paso | 1% | 0.5% | 0.5% Sun Metro (CTD) | — | 8.25% | Comptroller |
| Other cities | ||||||
| Corpus Christi | 1.375% | — | 0.5% CCRTA | 0.125% crime control | 8.25% | Comptroller |
| Lubbock | 1.5% | 0.5% | — | — | 8.25% | Kintsugi (Sep 2026); county from Comptroller |
| McAllen | 2% | — | — | — | 8.25% | Kintsugi; Hidalgo County is not on the county list |
| Waco | 1.5% | 0.5% | — | — | 8.25% | Avalara (modified Jul 15, 2026); county from Comptroller |
| College Station | 1.5% | 0.5% | — | — | 8.25% | Comptroller |
| Bryan | 1.5% | 0.5% | — | — | 8.25% | Comptroller |
| Amarillo | 2% | — | — | — | 8.25% | Comptroller (Potter and Randall rows match) |
We could read only part of the Comptroller’s city list online, so the Houston, Lubbock, McAllen and Waco city shares come from the sources named in the row. San Antonio’s own tax summary splits the same 0.875% transit total differently (0.625% MTA and 0.25% ATD); we follow the Comptroller, which raised the ATD share to 0.375% on Jan 1, 2026. The Comptroller’s Oct 1, 2026 changes and Jul 1, 2026 changes did not alter any city in this table. Local rate changes land at the start of a quarter, so the next possible date is Jan 1, 2027, including any approved at local elections on Nov 3, 2026. Some suburbs and unincorporated areas charge less than 8.25%: Check your address with the rate locator.
What’s exempt
| Item | Treatment | Source |
|---|---|---|
| Food and household | ||
| Grocery food: flour, sugar, milk, eggs, fruit, vegetables, meat | Exempt | Pub. 96-280, rev. Mar 2024 |
| Baby food, diapers, baby wipes, feminine hygiene products | Exempt | Pub. 96-280 |
| Bakery items sold without plates or utensils, any size | Exempt | Pub. 94-117 |
| Taxable items paid for with SNAP benefits | Exempt | Pub. 96-280 |
| Health | ||
| Over-the-counter medicine with a Drug Facts panel | Exempt | Pub. 94-155 |
| Drugs without a Drug Facts label | Exempt only if a doctor prescribes or dispenses them | Pub. 94-155 |
| Dietary supplements (not CBD products) | Exempt | Pub. 94-155 |
| Bandages, gauze, medical tape and other wound care | Exempt, no prescription needed | Pub. 94-155 |
| Utilities and connections | ||
| Residential natural gas and electricity | Exempt from most local sales taxes; counties and transit authorities cannot tax it | Comptroller utility page |
| Internet access, separately stated | Not taxable since Jul 1, 2020 | Pub. 96-259, Jan 2026 |
The residential utility rule has a wrinkle. Cities that already had a sales tax in 1979 could keep taxing home gas and electricity, and a few crime control and fire districts inside those cities can too. The Comptroller keeps the list of cities that do. If your power bill shows a city sales tax line, that is why.
What’s taxable that surprises newcomers
Food and drink
- Restaurant and ready-to-eat food is taxed, even when it is to go. At the grocery store, hot food, sandwiches and food sold with utensils are taxed too (Pub. 96-280).
- Candy, gum and soft drinks are taxed, and “soft drink” includes flavored water, powdered mixes and “-ades.” Energy and sports drinks are taxed unless they carry a Supplement Facts panel, contain milk or are more than 50% juice (Pub. 96-280).
- Paper goods, cleaning supplies, pet food and beauty products are taxed in the same grocery cart as your exempt food (Pub. 96-280).
- Restaurant tips: a mandatory service charge is taxed if it is over 20% of the bill. Voluntary tips are not.
Services
Texas taxes 16 categories of services, plus a few related ones. The ones households run into most:
- Lawn care and landscaping, pest control, janitorial work and private trash pickup (real property services).
- Burglar alarm installation and monitoring, and locksmiths (security services).
- Parking, including meters, permits and valet.
- Repairs to things you own, such as appliance and shoe repair, and dog grooming.
- Laundry, dry cleaning, alterations and carpet cleaning.
- Phone service, including mobile and VoIP.
Repair and remodeling work on a home is generally not taxed, because only nonresidential real property repair is on the list.
Digital products
- Streaming video is taxed as cable television, which the Comptroller says covers satellite, streaming and video on demand (Pub. 96-259).
- Online games are an amusement service, and taxable.
- Cloud storage, web hosting and online databases are data processing or information services, taxed on 80% of the price because 20% is exempt.
2026 sales tax holidays
Texas runs four tax-free periods a year. There is no limit on how many qualifying items you buy, and shipping or delivery charges count toward the price caps. All four 2026 holidays are over; the 2027 dates are not yet announced.
| Holiday | 2026 dates | What qualifies | Est. savings | Source |
|---|---|---|---|---|
| Emergency preparation supplies | Apr 25–27 | Batteries, fuel containers and flashlights under $75; hurricane shutters and emergency ladders under $300; portable generators under $3,000. Not camping gear, chainsaws, plywood, tents or car batteries. | $2.4M | Comptroller, Apr 16, 2026 |
| ENERGY STAR products | May 23–25 (Memorial Day weekend) | ENERGY STAR air conditioners up to $6,000, refrigerators up to $2,000, ceiling fans, light bulbs, clothes washers, dishwashers, dehumidifiers. Not water heaters, dryers, freezers, stoves or heat pumps. | $15.7M (both) | Comptroller Pub. 96-1331 |
| Water-efficient products | May 23–25 | WaterSense showerheads, faucets and irrigation controls; for homes, drip and soaker hoses, mulch, plants, trees and grass. | Comptroller, May 19, 2026 | |
| Back to school | Aug 7–9 | Clothing, shoes, school supplies and backpacks under $100 each, in stores, online, by phone or by mail. Layaway counts. | $142.5M | Comptroller, Aug 6, 2026 |
The caps are strict. The Comptroller’s own example: a $1,995 refrigerator plus $50 delivery is over $2,000, so the whole sale is taxed. If a store charges tax on a qualifying item during a holiday, ask the seller for a refund.
Cars, hotels and bar tabs
Motor vehicle sales tax
Cars are taxed separately, at 6.25% of the price minus any trade-in, with no local add-on. A dealer collects it. If you buy from a private seller, you pay it at the county tax office within 30 days, and the tax can be based on the car’s standard presumptive value rather than the price on the form. Moving here with a car you already own costs a $90 new-resident tax instead. More on Texas vehicle costs.
Hotel occupancy tax
The state charges 6% of the room price on rooms that cost $15 or more a night. Cities, some counties and special districts add their own hotel tax on top, so the total in a big city is well above 6%. Short-term rentals count: the Comptroller says people renting out a home or rooms must collect the tax the way a hotel does, and booking platforms may collect it for them.
Mixed-beverage tax
Drinks at a bar or restaurant carry two taxes. The seller pays a 6.7% gross receipts tax, and you pay an 8.25% mixed-beverage sales tax, which covers beer and wine served on site as well as cocktails, plus the mixers and ice that go into them. Some menus build the tax into the price and some add it as an “MB tax” line; the bar has to pick one method and stick with it.
Out-of-date numbers you’ll still find online
The Advanced Transportation District’s share rose on Jan 1, 2026, when the city dropped its extra sports venue tax. The combined rate stayed at 8.25%.
That $25 threshold ended on Jul 1, 2020. Internet access bundled with a taxable service, like TV, can still be taxed unless the provider separates it.
The April and May 2026 holiday releases still quote Hancock. The August 2026 release is from Huffines.
How we check
Rates and rules come from the Texas Comptroller’s rate lists, quarterly change notices, publications and news releases. Where we could not read the Comptroller’s list for a city, the source column names the tax-rate service we used instead. Income tax, property tax and vehicle fees are on Texas taxes and Texas property taxes. Read the full methodology.