Texas is one of only a handful of US states that levies no state personal income tax, which is why so many people and businesses move here. But no income tax does not mean no tax at all. Texas relies heavily on a state sales tax of 6.25%, and cities, counties, transit authorities and special districts can add up to another 2.0%, pushing the combined rate as high as 8.25% in many parts of the state. This calculator shows exactly how much tax you will pay on a purchase and confirms your Texas state income tax is $0.00.
Type any pre-tax amount and the tool instantly splits the tax into its state and local pieces, shows the combined rate, and adds the grand total you will actually hand the cashier. On a $100 purchase at the maximum 8.25% rate, you pay $8.25 in tax for a total of $108.25.
How to Use
- Enter the Purchase Amount — the pre-tax price of the item, meal, or service. Leave out any coupon or trade-in values if you want the tax on the full sticker price.
- Set the State Sales Tax Rate. This is fixed at 6.25% across Texas by the Comptroller, so you normally do not need to change it.
- Set the Local Sales Tax Rate. Look up your city or county rate: Houston, Dallas, San Antonio and Austin all sit near the top at roughly 1.5%–2.0% local, while smaller towns can be under 1.0%. Combined, the rate cannot legally exceed 8.25%.
- Read the result card: the state tax, local tax, combined rate, total sales tax, and the total with tax update as you type.
The result card also shows a line for Texas State Income Tax, which will always read $0.00 because the Texas Constitution bans a personal income tax.
How Texas Sales Tax Is Built
Texas uses a two-layer sales tax model:
- State layer (6.25%) — collected by the Texas Comptroller and fixed by state law.
- Local layer (0%–2.0%) — added on top by individual cities, counties, metropolitan transit authorities, and special-purpose districts (such as emergency services or water districts).
The combined rate is simply the two layers added together:
Combined Rate = 6.25% + Local Rate
On a $100 purchase in a city with a 2.0% local rate:
- State tax = $100 × 6.25% = $6.25
- Local tax = $100 × 2.0% = $2.00
- Total tax = $8.25, for a grand total of $108.25.
Texas law caps the combined rate at 8.25%, so no matter how many overlapping districts sit on top of a store, you will never pay more than that on a taxable purchase. Grocery food ( unprepared food for home consumption) is taxed at a reduced 1% state rate, and prescription medicines, over-the-counter drugs, and many agricultural items are exempt — but most retail goods, furniture, vehicles, and restaurant meals are taxed at the full combined rate.
No Income Tax, But Watch Property Tax
The trade-off for no state income tax is that property taxes in Texas run among the highest in the nation, typically 1.5%–2.5% of a home's assessed value each year, set by county, school, and city districts. Retirees and high earners benefit most from the 0% income tax, while homeowners feel the offset on their annual tax bill. If you are comparing states, remember: Texas saves you on paycheck withholding but may charge you more on your home.
Examples
Example 1 — A $100 dinner out. In Houston, the local rate is about 2.0%, so the combined rate is 8.25%. A $100 restaurant meal (prepared food is fully taxable) costs $8.25 in tax, for a total of $108.25. Of that, $6.25 goes to the state and $2.00 to local districts.
Example 2 — A big-ticket purchase in Austin. A $1,000 laptop bought in Austin (roughly 1.0% local, 7.25% combined) triggers $72.50 in sales tax — $62.50 state and $10.00 local — bringing the total to $1,072.50. Buying the same laptop just over the border in a lower-rate town could save you a few dollars.
Example 3 — A $1,000,000 taxable vehicle or equipment purchase. At a 7.25% combined rate, the sales tax alone is $72,500 — $62,500 state plus $10,000 local — on a $1,072,500 total. On assets this large, business buyers track the tax carefully because it is often recoverable or capitalized.
Example 4 — Zero-rated purchase. If the purchase amount is $0.00, the tax is $0.00 no matter what rate you select — the engine divides the bill into state and local pieces but always multiplies against a zero base.
FAQ
How much is sales tax in Texas?
The Texas state sales tax is 6.25%. Local governments can add up to 2.0%, so the combined rate ranges from 6.25% up to a legal maximum of 8.25% depending on the city, county, and special district where you buy.
Does Texas have a state income tax?
No. Texas is one of nine states with no broad-based personal income tax, a protection written into the Texas Constitution (Article 8, Section 24). When you look at your Texas paycheck, you will see federal income tax and FICA withheld, but no Texas state income tax line.
What is the maximum sales tax rate in Texas?
By law the combined state and local sales tax rate cannot exceed 8.25%. Even when a store sits inside overlapping city, county, transit, and emergency districts, your taxable purchase is capped at 8.25%.
Is grocery food taxed in Texas?
Most unprepared grocery food bought for home consumption is taxed at a reduced 1% state rate rather than the full 6.25%. Prepared foods, hot foods, and restaurant meals are taxed at the normal combined rate. Prescription and over-the-counter medicines are generally exempt.
How do I find the local sales tax rate for my city?
Use the Texas Comptroller's online tax-rate lookup, or check your city and county website. The local component is the number you enter in the Local Sales Tax Rate box — typical values are 1.0%–2.0% in major metro areas and lower in rural counties.
Do I pay sales tax on a car bought out of state?
Texas residents owe Texas use tax when they bring a vehicle into the state, usually at the same combined rate that would have applied locally, minus any tax already paid to another state. Enter the vehicle price and your home local rate in this calculator to estimate what you may owe.
Disclaimer
This Texas tax calculator is provided for informational purposes only and does not constitute tax, legal, or accounting advice. Sales tax rules, local rates, exemptions, and reduced food rates change over time and vary by address and district. The 6.25% state rate and 8.25% combined cap reflect Texas law at the time of writing, but you should always confirm the exact rate for your specific location with the Texas Comptroller or a qualified tax professional before filing or making a major purchase.