Texas Sales Tax
Calculator
Calculate Texas sales tax instantly for any city. Enter any amount to see the exact tax and total with local rates included.
About Texas Sales Tax
Houston MTA (Transit)
Businesses in this district charge an additional tax, bringing the total rate to 8.250% instead of the standard 8.250%.
Why Texas Relies on Sales Tax
Texas is one of only nine U.S. states with no personal income tax, making sales tax critically important to fund state operations. Unlike most states that balance revenue between income and sales taxes, Texas relies heavily on sales tax and property tax to generate revenue.
No Personal Income Tax
- • No state tax on wages, salaries, or retirement income
- • No tax on capital gains or investment income
- • One of 9 states without personal income tax
Sales Tax Revenue Impact
- • 58% of all Texas tax revenue comes from sales tax
- • Monthly sales tax collections: ~$4.2 billion
- • Annual revenue: Over $50 billion from sales tax
Revenue Growth Over Time
When Texas first adopted its sales tax in 1961 at 2%, it generated $149 million in revenue. By 1990, when the rate reached its current 6.25%, revenue had grown to $7.59 billion. Today, Texas collects approximately $4.2 billion per month in state sales tax revenue, funding essential services including education, healthcare, and infrastructure.
Note: Because Texas doesn't have income tax, sales tax revenue is more critical than in most other states. This makes the state budget more sensitive to economic cycles and consumer spending patterns.
Texas Sales Tax Rates by City
Texas has a 6.250% state sales tax rate, with local taxes adding up to 2% depending on the city, county, and special districts. Most major cities have combined rates of 8.25%.
Houston
Harris County
San Antonio
Bexar County
Dallas
Dallas County
Fort Worth
Tarrant County
Austin
Travis County
El Paso
El Paso County
Arlington
Tarrant County
Corpus Christi
Nueces County
Plano
Collin County
Lubbock
Lubbock County
City | County | Standard Rate | Special District | Population |
|---|---|---|---|---|
| Houston | Harris | 8.250% | Special District | 2,390,125 |
| San Antonio | Bexar | 8.250% | Special District | 1,526,656 |
| Dallas | Dallas | 8.250% | Special District | 1,326,087 |
| Fort Worth | Tarrant | 8.250% | Special District | 1,008,106 |
| Austin | Travis | 8.250% | Special District | 993,588 |
| El Paso | El Paso | 8.250% | Special District | 681,723 |
| Arlington | Tarrant | 8.250% | Standard Rate | 403,672 |
| Corpus Christi | Nueces | 8.250% | Special District | 317,317 |
| Plano | Collin | 8.250% | Special District | 293,286 |
| Lubbock | Lubbock | 8.250% | Standard Rate | 272,086 |
| Garland | Dallas | 8.250% | Special District | 250,431 |
| Frisco | Collin | 8.250% | Standard Rate | 235,208 |
| McKinney | Collin | 8.250% | Standard Rate | 227,526 |
| Grand Prairie | Dallas | 8.250% | Special District | 207,331 |
| Amarillo | Potter | 8.250% | Standard Rate | 203,729 |
| Brownsville | Cameron | 8.250% | Standard Rate | 191,967 |
| Denton | Denton | 8.250% | Special District | 165,998 |
| Killeen | Bell | 8.250% | Standard Rate | 160,616 |
| Pasadena | Harris | 8.250% | Special District | 149,617 |
| McAllen | Hidalgo | 8.250% | Standard Rate | 148,782 |
| Waco | McLennan | 8.250% | Standard Rate | 146,608 |
| Midland | Midland | 8.250% | Special District | 143,687 |
| Lewisville | Denton | 8.250% | Standard Rate | 135,983 |
| Carrollton | Dallas | 8.250% | Special District | 135,456 |
| Round Rock | Williamson | 8.250% | Standard Rate | 135,359 |
| Abilene | Taylor | 8.250% | Standard Rate | 130,501 |
| Laredo | Webb | 8.250% | Special District | 26,126 |
| Irving | Dallas | 8.250% | Special District | 25,806 |
| Mesquite | Dallas | 8.250% | Standard Rate | 15,014 |
| Pearland | Brazoria | 8.250% | Standard Rate | 12,962 |
Note: Cities like Houston, Dallas, San Antonio, and Austin all have combined rates of 8.25%. Local rates include city, county, transit authority, and special purpose district taxes.
How to Calculate Sales Tax in Texas
Reverse Calculation
Know the total? Divide by 1.0825 to find the pre-tax price in most major TX cities. Example: $1,082.50 ÷ 1.0825 = $1,000.00
What's Taxed?
Special Texas Sales Tax Rules
Multiple Sales Tax Holidays
Texas offers three annual sales tax holidays, allowing residents to purchase qualifying items tax-free during specific weekends throughout the year.
Emergency Preparation
📅 April 26-28, 2025
Portable generators, emergency ladders, hurricane shutters, and other disaster prep items under $300. Includes batteries, flashlights, first aid kits, and fire extinguishers.
Energy Star & Water-Efficient Products
📅 May 24-26, 2025 (Memorial Day Weekend)
Energy-efficient appliances, air conditioners, refrigerators, washing machines, and WaterSense-labeled products purchased tax-free.
Back-to-School
📅 August 8-10, 2025
Clothing, footwear, and backpacks: Under $100 per item
School supplies: Under $100 per item
Excludes athletic/protective wear
Grocery Exemption
Texas exempts most food and food ingredients from sales tax
- ✓ Tax-Exempt: Bread, milk, eggs, sugar, flour, fruits, vegetables, meat, and other unprepared foods
- ✕ Taxable: Prepared foods, candy, soft drinks, alcoholic beverages, dietary supplements
- • Prescription Drugs: Exempt from sales tax
- • Over-the-Counter Medicines: Generally taxable
Note: Texas has some of the most generous grocery exemptions in the nation. The exemption covers most food items typically purchased at grocery stores for home consumption.
Unique Texas Rules & Border Economy
Business Exemptions
Texas offers generous exemptions for manufacturers and agricultural producers
Manufacturing Exemptions
Equipment and materials that become ingredients or components of manufactured products are exempt. This includes machinery that makes chemical or physical changes to products.
Note: Hand tools and janitorial equipment remain taxable even when used in manufacturing.
Agricultural Registration Required
Since 2012, farmers and ranchers must obtain an Ag/Timber Registration Number from the Texas Comptroller to claim agricultural exemptions. This number must be renewed every four years.
Surprising rule: Pick-up trucks are taxable even with farm plates, but tractors and essential farm equipment are exempt.
The Mexico Border Effect
Texas's 1,200-mile border with Mexico creates a unique cross-border shopping economy
- 65% Of weekend shoppers in El Paso malls come from Mexico, making cross-border retail crucial to border city economies
- $4.9B Lost GDP in border counties during COVID-19 travel restrictions (6.1% of their total GDP)
- $352M Spent annually by El Paso residents shopping in Mexico for groceries and goods
This bidirectional shopping creates a unique dynamic: Mexican shoppers seek electronics, clothing, and other items in Texas to avoid higher Mexican taxes, while Texas border residents cross south for groceries and services. Mexican shoppers contribute billions to Texas sales tax revenue annually.
Online Sellers & Unusual Rules
Remote Seller Threshold
Online sellers must collect Texas sales tax if they exceed $500,000 in annual Texas sales (effective Oct 2019).
Simplified option: Remote sellers can use a single 1.75% local tax rate instead of calculating rates for each destination.
Overlapping Jurisdiction Cap
Some Texas areas have overlapping city and district boundaries that technically exceed 2% local tax.
Solution: The Comptroller caps it at 2% and shares revenue between jurisdictions.
The Bakery Exemption
Bakery items sold without plates or eating utensils are tax-exempt, even if they're single servings.
Example: A whole pie or individual slice from a bakery is exempt if you don't get a fork!
How Texas Compares to Neighboring States
Here's how Texas's sales tax stacks up against nearby states
local tax
local tax
local tax
local tax
Texas has a higher state rate but lower local tax cap (2%) compared to neighboring states like Louisiana and Oklahoma, which can add up to 7% in local taxes.
Frequently Asked Questions
Texas Sales Tax Rate History
Texas adopted its sales tax on September 1, 1961 at 2%, and the state rate has been remarkably stable at 6.250% since 1990 — over 35 years without a change.
| Effective Date | Rate | Change | Notes |
|---|---|---|---|
| January 1, 1990 | 6.250% | ▼ -0.250% | Reduced from 6.5% (current rate for 35+ years) |
| October 1, 1987 | 6.500% | ▲ +0.750% | Temporary increase for budget needs |
| August 1, 1986 | 5.250% | ▲ +1.125% | Significant increase |
| August 1, 1984 | 4.125% | ▲ +0.125% | Small adjustment |
| October 1, 1971 | 4.000% | ▲ +0.750% | Increased from 3.25% |
| September 1, 1969 | 3.250% | ▲ +0.250% | Incremental increase |
| September 1, 1968 | 3.000% | ▲ +1.000% | First major increase. Local taxes authorized in 1967 |
| September 1, 1961 | 2.000% | — | Sales tax first adopted in Texas, generating $149M annually |
Historical note: In 1967, the Texas Legislature authorized cities to levy a 1% local sales tax. By January 1968, only 14 municipalities had adopted it. By January 1971, that number had grown to 605 cities. Today, the combined state and local rate caps at 8.25%.
Related Calculators & Resources
Disclaimer: This calculator provides estimates based on current Texas sales tax rates as of November 2025. Tax rates are subject to change by state and local legislation. For official tax rates and specific guidance on your situation, please consult the Texas Comptroller of Public Accounts or a qualified tax professional.
Not Legal or Tax Advice: The information provided on this page is for informational purposes only and should not be construed as legal or tax advice. Always verify current rates before making large purchases or business decisions.
Sources: Texas Comptroller of Public Accounts, Texas Tax Code Chapter 151 (Limited Sales, Excise and Use Tax), local tax authorities
Last updated: November 18, 2025