How Texas Sales Tax Works
Texas's state government imposes a 6.25% sales tax on most retail purchases. Counties, cities, and special districts can layer additional local sales tax on top — pushing combined rates to a population-weighted average of 8.20% statewide.
Texas has no income tax, and the state caps local sales tax add-ons at 2% — keeping combined rates from spiking the way they do in some other no-income-tax states.
Groceries in Texas
Texas exempts unprepared groceries from sales tax.
Clothing in Texas
Texas taxes most clothing at the standard rate, but holds annual sales tax holidays.
Sales Tax Holidays in Texas
Texas runs a back-to-school tax-free weekend in early August on clothing/footwear/backpacks under $100, plus separate holidays for energy-efficient appliances and emergency preparation supplies.
How Texas Compares to Neighboring States
Sales tax on a $1,000.00 purchase in Texas versus neighboring states, using each state's average combined rate (state + local):
| State | State Rate | Combined Rate | Tax on $1,000 | vs. Texas |
|---|---|---|---|---|
| Texas (here) | 6.25% | 8.20% | $82.00 | — |
| New Mexico | 4.88% | 7.68% | $76.80 | -$5.20 |
| Oklahoma | 4.50% | 8.99% | $89.90 | +$7.90 |
| Arkansas | 6.50% | 9.44% | $94.40 | +$12.40 |
| Louisiana | 5.00% | 10.11% | $101.10 | +$19.10 |
A negative "vs." figure means a lower sales tax bill on the same purchase. Specific addresses can vary materially from the state-wide average.
Frequently Asked Questions
What is the Texas sales tax rate for 2026?
Texas's state sales tax rate is 6.25% for 2026. When combined with the average local sales tax of 1.95%, most Texas residents pay a typical combined rate of 8.20%.
How much sales tax will I pay on a $100 purchase in Texas?
On a $100 purchase, expect approximately $6.25 in state sales tax, or about $8.20 including average local sales tax (combined 8.20%). Total cost: roughly $108.20.
Are groceries taxed in Texas?
Texas exempts unprepared groceries from sales tax.
Is clothing taxed in Texas?
Texas taxes most clothing at the standard rate, but holds annual sales tax holidays.
Is sales tax calculated before or after discounts in Texas?
Texas follows the standard rule used by virtually all states: sales tax is calculated on the final discounted price, not the original price. If a $200 item is on sale for $150, you pay sales tax on $150. Manufacturer coupons can be treated differently in some states.
How is this Texas sales tax estimate calculated?
The calculator applies Texas's 6.25% state sales tax rate plus whatever local rate you enter (city + county + special districts). The default Local Rate is 0%; click a city in the table above to fill in its local portion, or look up your specific address with Texas's Department of Revenue tool.