Texas Sales Tax Calculator 2026

Understanding Texas Sales Tax

Texas imposes a statewide sales tax rate of 6.25% on most retail purchases. This is right around the national average. Local jurisdictions can layer additional taxes on top, so the rate you pay at the register may be higher than the state rate alone.

State Rate vs. Local Rate

The 6.25% rate is just the state portion. Texas allows cities, counties, and special taxing districts to levy additional sales taxes. These local rates typically range from 0.5% to 3%, though some areas go higher. The combined rate — state plus local — is what you actually pay. To find the exact rate for your address, use the Texas Department of Revenue's rate lookup tool or enter your local rate in our calculator above.

How to Calculate Texas Sales Tax

The formula is straightforward: multiply the purchase price by the tax rate expressed as a decimal. For a $100.00 purchase at the 6.25% state rate:

• $100.00 × 0.0625 = $6.25 in state tax
• Total: $100.00 + $6.25 = $106.25

If your city adds a 2% local tax, the combined rate becomes 8.25%, and the tax on $100.00 jumps to $8.25. That local portion adds up fast on large purchases.

Common Exemptions in Texas

Not everything is taxable. Texas, like most states, exempts certain categories of goods from sales tax. Here are the most common:

Groceries: Texas exempts most unprepared grocery items from the 6.25% state sales tax. Prepared foods, candy, and soft drinks are typically still taxable.

Clothing: Clothing is subject to the standard 6.25% state sales tax in Texas. Some states offer sales tax holidays for back-to-school clothing — check whether Texas participates.

Prescription Medication: Prescription medications are exempt from sales tax in Texas. Over-the-counter drugs and medical devices may or may not be taxable depending on Texas law — verify with the state tax authority.

Sales Tax on Vehicles and Large Purchases

Buying a car in Texas? The state sales tax of 6.25% applies to vehicle purchases, typically calculated on the purchase price or the fair market value, whichever is higher. On a $30,000 vehicle, that's $1875 in state tax alone before any local taxes. Some states offer trade-in credits that reduce the taxable amount — check whether Texas allows this deduction.

Online Purchases and Texas Sales Tax

Since the 2018 South Dakota v. Wayfair Supreme Court ruling, Texas requires out-of-state online retailers to collect sales tax once they exceed certain economic nexus thresholds. Most major online retailers now collect Texassales tax automatically. If you buy from a seller who doesn't collect the tax, you are still legally required to report and pay use tax on your Texas tax return.

Filing Requirements for Businesses

Businesses making taxable sales in Texas must register with the state, collect the correct amount of sales tax at each transaction, and file returns on a monthly, quarterly, or annual basis depending on their volume. Late filing and underpayment can trigger penalties and interest. If you sell into Texas from another state, the economic nexus rules may require you to register even without a physical presence.

No Income Tax in Texas

Texas is one of the states with no personal income tax. This means the state relies more heavily on sales tax and other consumption taxes for revenue. The 6.25% sales tax rate is part of this trade-off — residents pay more on purchases but keep more of their earned income.