Texas sales tax calculator
Texas adds up to 2.00% local sales tax on top of the 6.25% state base, capping at 8.25%. Almost every Texas city hits the cap.
Calculate Sales tax for Texas, USA
Pick a rate, choose direction (add or remove tax), type the amount. The math updates as you type.
How Texas sales tax actually works
Texas has a 6.25% state sales tax with a 2.00% cap on combined local taxes (cities, counties, transit authorities). Unlike California where local rates compound, Texas caps the total at 8.25% no matter how many overlapping districts apply. As a result, almost every populated area in Texas sits at exactly 8.25%, since cities reliably push their portion up against the cap.
Sample 2026 combined rates across major Texas cities:
- Houston: 8.25% (6.25% state + 1.00% city + 1.00% MTA)
- Dallas: 8.25% (6.25% state + 1.00% city + 1.00% DART)
- Austin: 8.25% (6.25% state + 1.00% city + 1.00% Capital Metro)
- San Antonio: 8.25% (6.25% state + 1.125% city + 0.875% county/MTA)
- Fort Worth: 8.25% (6.25% state + 1.00% city + 0.50% county + 0.50% MTA)
- El Paso: 8.25% (6.25% state + 1.00% city + 0.50% county + 0.50% MTA)
Unincorporated rural areas can be at 6.25% (state only), 7.25% or 7.75%, but population centers are essentially all at the 8.25% cap.
The math: add Texas sales tax
- Add 8.25%: total = sticker × 1.0825
- A $1,000 laptop in Houston: $1,000 × 1.0825 = $1,082.50. The $82.50 is sales tax.
- A $1,000 laptop in unincorporated Texas: $1,000 × 1.0625 = $1,062.50.
What's exempt in Texas
- Most groceries. Food and drink intended for home consumption are exempt. Snack-style items (candy, soft drinks, prepared sandwiches) are taxable.
- OTC medicines: Exempt since 2007. Prescription medicines were already exempt.
- Clothing. Generally taxable, with an annual sales tax holiday in August (typically the first weekend) on most clothing items under $100.
- Manufacturing equipment. Equipment used in manufacturing or processing is generally exempt.
The Texas sales tax holiday
Once a year, typically the first weekend of August, Texas runs a back-to-school sales tax holiday. Most clothing, footwear and school supplies under $100 per item are exempt from state and local sales tax. The exemption applies whether you're buying for a child, a teen or yourself — there's no school-attendance requirement. School backpacks under $100 and most school supplies under $100 are also covered.
For a typical family buying $500 of school clothing during the holiday, the savings are $500 × 0.0825 = $41.25. Modest in absolute terms, but timed for the largest back-to-school spending window.
Common Texas sales tax mistakes
- "Tax-free" SaaS. Texas taxes data processing services, which the comptroller has extended to cover many SaaS offerings. The exemption rules are narrow; check the comptroller's guidance for your specific service.
- Shipping. Always taxable in Texas, even when separately stated, when the underlying item is taxable.
- Online sales: Same Wayfair rules as everywhere else — out-of-state sellers above the threshold collect Texas sales tax.
How to use the calculator
Use 8.25% if you're in any Texas city; 6.25% in unincorporated rural Texas. Enter the pre-tax amount and the calculator returns the tax and total.
Frequently asked questions
What is the Texas sales tax rate in 2026?
The Texas state sales tax rate is 6.25%, with local taxes capped at 2.00% additional, for a maximum combined rate of 8.25%. Almost every Texas city sits at the 8.25% cap; unincorporated rural areas can be lower.
Why does Texas have no state income tax?
Texas constitutionally prohibits a state income tax. State revenue is funded primarily through the 6.25% sales tax, property taxes (assessed at the county level), oil and gas severance taxes, and franchise taxes on businesses. The 8.25% effective sales tax rate is notably higher than most no-income-tax-state alternatives like Florida (6.5%) or Tennessee (7%).
Are groceries taxed in Texas?
Most groceries for home consumption are exempt. Items classified as "snack food" (candy, chips, soft drinks, prepared sandwiches) are taxable. The distinction follows the comptroller's detailed product classification, which has many edge cases.
When is the Texas back-to-school sales tax holiday?
Typically the first weekend of August (Friday through Sunday). Most clothing and footwear under $100, plus school backpacks under $100 and most school supplies under $100, are exempt from state and local sales tax during the holiday.
Is SaaS taxable in Texas?
Texas taxes "data processing services" at a 20% reduction (so effectively 80% of the value is taxed at the 8.25% combined rate, producing a 6.6% effective rate on the full price). Many SaaS offerings are classified as data processing under the comptroller's rules, making them partially taxable. Check the comptroller's guidance for specific service categories.