Disclaimer: All rates and figures on this page are estimates for general informational purposes only and are not financial, tax, or legal advice. Sales tax rates change and vary by city, county, and the type of item purchased. Verify current rates with the Texas Department of Revenue before relying on these figures, and consult a qualified tax professional for specific guidance.
Calculate sales tax on any purchase in Texas. The state sales tax rate is 6.25%, and when combined with the average local rate of 1.95%, the total average in Texas comes to 8.20%. Actual rates vary by city and county.
Sales Tax Is How Texas Pays Its Bills
With no state income tax on wages, Texas leans on sales tax revenue more than most states — worth remembering when you compare its 8.2% combined rate with states that tax both paychecks and purchases.
At 8.2% combined (state plus average local), Texas's sales tax ranks 14th-highest nationally — above the national median of 7%.
The 6.25% state rate does most of the work in Texas, with local jurisdictions adding an average of 1.95%.
Combined state-plus-local averages nearby: Arkansas (9.48%); Louisiana (10.13%); New Mexico (7.675%); Oklahoma (9.06%). New Mexico has the lowest nearby rate at 7.675%.
Texas Sales Tax Rates
- State Rate
- 6.25%
- Avg Local Rate
- 1.95%
- Combined Average
- 8.20%
Quick Reference
Texas prohibits a state income tax but has some of the highest property tax rates.
State income tax: None
Texas Sales Tax Table
Quick reference for common purchase amounts at the 8.20% combined average rate:
| Purchase Price | Sales Tax | Total |
|---|---|---|
| $10 | $0.82 | $10.82 |
| $25 | $2.05 | $27.05 |
| $50 | $4.10 | $54.10 |
| $100 | $8.20 | $108.20 |
| $250 | $20.50 | $270.50 |
| $500 | $41.00 | $541.00 |
| $1,000 | $82.00 | $1082.00 |
| $2,500 | $205.00 | $2705.00 |
| $5,000 | $410.00 | $5410.00 |
Shopping in Texas: What Gets Taxed
Sales tax in Texas is collected at the point of sale on most tangible goods and some services. The state portion of 6.25% is uniform statewide, while local jurisdictions may add their own rates, averaging 1.95% across the state. Certain items like groceries and prescription medications may be exempt or taxed at reduced rates.
When budgeting in Texas, remember that sales tax affects your purchasing power. With a median home value of $301,600 and a property tax rate of 1.68%, understanding all taxes helps you make informed financial decisions.
What Is and Is Not Taxed in Texas
Unprepared groceries are exempt from Texas state sales tax — snack items sold in single servings are taxable.
Prescription medicines are exempt in Texas, as they are in every state that levies a sales tax; over-the-counter drugs and most medical supplies are treated separately and are frequently taxable.
Out-of-state sellers must register and collect Texas tax once they cross the state's economic nexus threshold, a rule that follows from the 2018 Supreme Court decision in South Dakota v. Wayfair. Below that threshold, the buyer technically owes use tax instead.