Texas sales tax adds a noticeable chunk to your shopping bill. The Lone Star State charges a 6.25% base rate. Local jurisdictions pile on up to 2% more. That means you could pay as much as 8.25% on everyday purchases. However, Texas also offers generous exemptions on groceries and medicine. Understanding how Texas sales tax works helps you keep more money in your wallet. This guide breaks down everything shoppers need to know in 2026.
Texas Sales Tax Rate: The Basics
The state of Texas charges 6.25% on most retail purchases. Cities, counties, and special districts add local taxes on top. The combined average across Texas is 8.19%. That sits well above the national average of 7.52%. Most major metro areas hit the maximum combined rate of 8.25%.
| Component | Rate |
|---|---|
| Texas state sales tax rate | 6.25% |
| Maximum local add-on | 2.00% |
| Maximum combined rate | 8.25% |
| Average combined rate (2026) | 8.19% |
| National average combined rate | 7.52% |
For example, a $500 television costs $541.25 at the maximum 8.25% rate. That is $3.35 more than you would pay at the national average rate. Over a year of shopping, that difference adds up. Specifically, families spending $20,000 annually on taxable goods pay about $1,650 in Texas sales tax at the max rate. Planning your purchases wisely can help offset that cost. Check out our month-by-month buying calendar for the best times to shop.
What Texas Does and Does Not Tax
Texas exempts several essential categories from sales tax. Groceries top the list. Unprepared food items like bread, milk, eggs, fruits, and vegetables are completely tax-free. Prescription medications are also exempt. In addition, over-the-counter drugs with an FDA “Drug Facts” label pay no sales tax either.
| Category | Taxed? | Notes |
|---|---|---|
| Groceries (unprepared food) | No | Bread, milk, eggs, produce, meat |
| Prepared food | Yes | Restaurant meals, deli items, heated food |
| Candy and soft drinks | Yes | Taxed at full rate |
| Clothing and footwear | Yes | Exempt only during back-to-school holiday |
| Prescription drugs | No | Always exempt |
| Over-the-counter medicine | No | Must have FDA Drug Facts label |
| Dietary supplements | No | Must have Supplement Facts label |
| Electronics | Yes | Phones, TVs, computers, accessories |
| Furniture | Yes | All home furnishings |
| Medical devices | No | Hearing aids, prosthetics, mobility aids |
However, clothing is fully taxable in Texas year-round. That surprises many shoppers who move from states like Pennsylvania or New Jersey. As a result, buying clothes during the annual back-to-school sales tax holiday saves real money. We cover that holiday in detail below.
Texas Sales Tax by City and County
Local rates vary across the state. However, nearly every major Texas city hits the 8.25% cap. Cities, counties, transit authorities, and special districts each claim a slice of that 2% local allowance. The combined rate depends on your exact location.
| City | Combined Rate |
|---|---|
| Houston | 8.25% |
| San Antonio | 8.25% |
| Dallas | 8.25% |
| Austin | 8.25% |
| Fort Worth | 8.25% |
| El Paso | 8.25% |
| Arlington | 8.25% |
| Lubbock | 8.25% |
In addition, some rural areas and smaller towns charge less than the maximum. Unincorporated areas without a city sales tax may only charge 6.75% to 7.25%. Specifically, shopping in smaller communities outside metro areas can save you 1% to 1.5% on every purchase. That matters on big-ticket items like furniture or appliances. For more ways to maximize savings, browse our shopping guides.
Texas Sales Tax Holidays
Texas offers four sales tax holidays in 2026. These weekends let shoppers buy qualifying items completely tax-free. Mark these dates on your calendar.
Emergency Preparation Supplies: April 25–27, 2026
Batteries, flashlights, and fuel containers under $75 qualify. Hurricane shutters and emergency ladders under $300 are included. Portable generators under $3,000 are also tax-free. This holiday covers essentials like first-aid kits, toilet paper, and disinfectants too.
ENERGY STAR Appliances: May 23–25, 2026
Air conditioners with the ENERGY STAR label under $6,000 qualify. Refrigerators under $2,000 are included. Ceiling fans, dishwashers, and clothes washers have no price cap. This falls on Memorial Day weekend. It is an ideal time to upgrade major appliances and avoid Texas sales tax on them.
Water-Efficient Products: May 23–25, 2026
This runs alongside the ENERGY STAR holiday. WaterSense-labeled products like showerheads, faucets, and toilets qualify with no price limit. Mulch, drip irrigation hoses, and moisture controls are also included. For example, replacing your bathroom faucet and showerhead saves you about $7 in tax on a $90 purchase.
Back-to-School: August 7–9, 2026
Clothing and footwear under $100 per item are tax-free. School supplies and backpacks under $100 also qualify. This is the biggest Texas sales tax holiday for families. A family buying $400 in school clothes saves about $33. Combine this with coupon stacking strategies for maximum savings.
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Online Shopping and Texas Sales Tax
Online purchases are not tax-free in Texas. Every major online retailer collects Texas sales tax at checkout. Amazon, Walmart, Target, and eBay all charge the full rate automatically. The specific rate depends on who sells the item and where they are located.
Texas uses a hybrid system. In-state sellers charge tax based on their business location. That is called origin-based sourcing. However, out-of-state sellers and marketplace platforms use destination-based sourcing. They charge the rate where your order ships. As a result, your Texas sales tax rate on Amazon orders matches your local combined rate.
Specifically, if you live in Houston, you pay 8.25% on Amazon purchases. If you live in a rural area with lower local taxes, you pay less. Marketplace platforms like Etsy and eBay follow the same destination-based rules. There is no way to avoid Texas sales tax by shopping online. However, you can save through cashback apps that offset part of the cost.
Smart Shopping Tips for Texas
1. Stock up during tax holidays. The back-to-school weekend alone can save a family $30 to $50. Plan your clothing and school supply purchases around the August tax-free weekend. Buy emergency supplies in April and appliances over Memorial Day weekend.
2. Prioritize tax-exempt categories. Groceries, OTC medicine, and supplements are already tax-free. Shifting spending toward home-cooked meals instead of prepared food avoids the 8.25% tax on restaurant-style purchases.
3. Shop in lower-tax areas for big purchases. Some unincorporated areas charge 1% to 1.5% less than metro areas. On a $2,000 furniture purchase, that saves $20 to $30. It is worth the drive for major buys.
4. Remember that Texas has no income tax. The higher sales tax rate partially funds services other states cover with income tax. However, this means smart shopping habits matter even more here. Every dollar saved on Texas sales tax is a dollar kept. Visit our complete guide to saving money online for more strategies.
5. Use cashback apps on every taxable purchase. Apps that return 1% to 5% cashback effectively cancel out part of the sales tax. On a $100 taxable purchase, 5% cashback gives you $5 back against $8.25 in tax. That cuts your effective tax burden nearly in half.
Frequently Asked Questions
What is the sales tax rate in Texas?
The Texas state sales tax rate is 6.25%. With local taxes added, the combined rate ranges from 6.25% to 8.25%. Most shoppers in major cities pay the full 8.25%.
Are groceries taxed in Texas?
No. Unprepared grocery items are exempt from Texas sales tax. This includes bread, milk, eggs, produce, meat, and other staples. However, prepared food, candy, and soft drinks are taxable.
Does Texas have a sales tax holiday?
Yes. Texas has four sales tax holidays in 2026. They cover emergency supplies (April), ENERGY STAR appliances (May), water-efficient products (May), and back-to-school items (August). Each holiday lasts three days and waives the full Texas sales tax on qualifying purchases.
Start Saving on Every Purchase
Now that you know your state’s sales tax rates, use that knowledge to time your purchases and stack savings. Combine tax-free shopping periods with cashback apps and coupon codes to keep more money in your pocket.
Official Sources
- Tax Foundation — state and local sales tax data
- IRS.gov — federal tax information
- FTC Consumer Information — shopping rights and protections
Rates current as of May 2026. Sales tax rates change periodically. Always verify current rates with your state’s revenue department.