Texas Reverse Sales Tax Calculator
Part of the state-by-state reverse tax calculator collection. Texas keeps it relatively straightforward compared to some states — well, straightforward by US sales tax standards. The state rate is 6.25%, and most major cities max out the local addition at 2%, bringing the combined rate to 8.25%. That 8.25% ceiling is actually enforced by law, which makes Texas unusual — you won't see wildly varying rates between cities the way you do in places like Colorado or Louisiana.
The statewide average combined rate is 8.19%, which is what the calculator below defaults to. If you're in Houston, Dallas, Austin, San Antonio, or pretty much any other large metro area, you'll want to bump that up to 8.25%. If you're in a smaller town or rural county that hasn't maxed out its local rate, you might need something lower — check your receipt or your county's rate page on the Texas Comptroller's site.
Current Texas Sales Tax Rates
Texas has a single state rate with a hard cap on how much local jurisdictions can add. Here's the summary:
| Component | Rate |
|---|---|
| State rate | 6.25% |
| Average local rate | 1.94% |
| Average combined rate | 8.19% |
And here's what you'll actually pay in the biggest cities. You'll notice a pattern — they're all the same.
| Location | Combined Rate |
|---|---|
| Houston | 8.25% |
| Dallas | 8.25% |
| Austin | 8.25% |
| San Antonio | 8.25% |
| Fort Worth | 8.25% |
| El Paso | 8.25% |
| Plano | 8.25% |
Most major Texas cities are at the maximum allowed combined rate of 8.25%. Rural areas can be lower — somewhere around 6.25% to 7.25% — depending on whether the county and any special districts have added their own levies.
What's Taxable in Texas
Most tangible goods are taxable in Texas. If you can hold it in your hand and it's not food or medicine, chances are you're paying tax on it. Clothing is taxable. Electronics, furniture, household goods — all taxable. There's no blanket exemption for necessities the way some states handle it.
Food for home consumption is exempt from state sales tax, which sounds simple enough until you get into the details. Groceries you take home and cook yourself? Exempt. But ready-to-eat food, candy, and soft drinks are taxable. This is where it gets confusing for people: a bag of chips from the grocery store is exempt, but that same bag of chips from a vending machine or served at a restaurant is taxable. The distinction comes down to how the food is sold, not what the food actually is. Prescription drugs and over-the-counter medicines prescribed by a doctor are exempt. Most medical devices are exempt too.
Texas does run a sales tax holiday typically in August aimed at back-to-school shopping. During that weekend, clothing under $100 per item, school supplies under $100, and backpacks under $100 are temporarily exempt from both state and local sales tax. It's one of the more generous tax holidays in the country, and it genuinely saves families some money if they time their purchases right.
Worked Example
You had a business lunch in Houston. Total on the receipt: $163.47. Houston's combined rate is 8.25%.
$163.47 ÷ 1.0825 = $151.01 (pre-tax price)
$163.47 − $151.01 = $12.46 (tax amount)
That's $12.46 in sales tax on a $151.01 meal. If you need to file that expense with the pre-tax amount broken out, now you have it. The main calculator handles this in about two seconds — just plug in the total and the rate, and it does the division for you. No need to find the ÷ key on your phone's calculator app and double-check your decimal placement.
Texas Sales Tax Holiday
Texas holds a sales tax holiday every August — typically the second weekend. During this period, most clothing and footwear under $100 per item, school supplies under $100, and backpacks under $100 are exempt from state and local sales tax. It's genuinely useful if you're buying school supplies for kids, and plenty of adults use it to stock up on basics too.
The exact dates shift each year, so don't assume it falls on the same weekend as last time. Check the Texas Comptroller's website for the confirmed 2025 dates. One thing people miss: items priced at $100 or more don't get a partial exemption. A $99 pair of shoes is fully exempt during the holiday. A $101 pair is fully taxable. There's no proration.
Frequently Asked Questions
8.25%. Houston is at the maximum combined rate allowed in Texas — 6.25% state plus 2% local. This is the same rate you'll pay in Dallas, Austin, San Antonio, and most other major Texas cities. The 2% local cap is a state law, so you won't find any city in Texas charging more than 8.25% combined.
No — most food for home consumption is exempt. But there's a catch: candy, soft drinks, and ready-to-eat prepared food are all taxable. A frozen pizza from the freezer aisle? Exempt. A hot slice from the pizza counter? Taxable. The distinction is about how the food is sold, not what it is. If you're doing the math on a grocery receipt and wondering why some items were taxed and others weren't, this is almost certainly why.
Clothing and footwear under $100 per item, school supplies under $100, and backpacks under $100. The holiday usually falls on the second weekend in August. Note: items priced at $100 or more are not partially exempt — they're fully taxable. A $99.99 shirt is tax-free during the holiday. A $100.00 shirt is not. That one-cent difference matters, so keep it in mind when shopping.
Divide the total by 1.0825 if you're in a major Texas city (most are at 8.25%). If you're in a smaller town with a lower local rate, adjust accordingly — some rural areas are at 6.75% or 7.25%. You can use the custom rate field in the calculator above to enter your exact local rate. The formula is always the same: total ÷ (1 + rate as a decimal) = pre-tax price.