State guide · TX
Texas sales tax and property tax
A sales tax that tops out at 8.25%, and property tax bills that are the real cost of owning a home, softened by a $140,000 school exemption.
Facts read on official Texas pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 6.25%
- Local sales taxes
- Yes, by address
- Groceries
- Exempt from the state rate
- Clothing
- Taxed like other goods
- Median property tax
- $4,108
- Effective property rate
- 1.31% · #8 of 51
Texas charges a 6.25% state sales tax, and cities, counties, transit authorities and special districts can add up to 2% between them, so no Texas receipt exceeds 8.25%. Groceries such as bread, milk, eggs and produce are untaxed, as are prescription drugs and over-the-counter medicines with a Drug Facts label; clothing is taxed except during the August back-to-school weekend. The spring brings extra breaks: emergency supplies in late April, ENERGY STAR appliances and water-saving products over Memorial Day weekend. Property tax is where Texans pay. It is entirely local, levied by school districts, counties, cities and special districts on values set each January 1 by the county appraisal district. The typical owner paid $4,108 in 2024 on a $313,200 home (Census ACS), 1.31% of value, ranked 8 of 51 by rate. A principal residence gets a $140,000 exemption from school district tax, plus $60,000 more for owners 65 or older or disabled, $200,000 in all.
Total to pay
$106.25
Sales tax $6.25 · 6.25% of the price
| Price before tax | $100.00 |
| State tax · 6.25% | $6.25 |
| Local tax · 0% | $0.00 |
| Total | $106.25 |
Rule applied: general state rate. Exact local rate for an address: Texas rate lookup. How this is calculated.
Sales tax in Texas
The 2% local ceiling is the number to remember in Texas. However many taxing bodies overlap at an address, a city, its county, a transit authority and a special purpose district together cannot charge more than 2%, so the combined rate tops out at 8.25%. A $1,000 television bought at that maximum carries $82.50 of tax. The Comptroller's address search gives the exact local figure to type into the calculator above.
The grocery line is drawn by how food is sold. Flour, sugar, milk and fruit are exempt, while soft drinks, candy, beer and wine are taxed. Bakeries get a special rule: bakery items are tax-free from a bakery whose display case brings in more than half its sales, but the same items heated or handed over with utensils elsewhere are taxable. Over-the-counter medicine with an FDA Drug Facts label is exempt with no prescription needed.
Texas uses holidays more than most states. From April 25 to April 27, 2026, emergency gear was tax-free, including portable generators under $3,000: a $2,400 generator saved $150.00 of state tax alone. From May 23 to May 25, 2026, ENERGY STAR refrigerators up to $2,000 qualified, so a $1,900 model escaped $118.75 of state tax, and water-efficient products joined in. The back-to-school holiday in August covers clothing, shoes and supplies under $100 per item. Cars pay a separate 6.25% motor vehicle sales tax on the price minus any trade-in, and new residents bringing their own vehicle pay a flat $90 instead.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 6.25% | yes | 6.25% state sales and use tax on retail sales, leases and rentals of most goods and on taxable services. Local jurisdictions can add up to 2%, for a maximum combined rate of 8.25%. |
| Groceries (food for home) | 0% | no | Food products such as flour, sugar, bread, milk, eggs, fruit and vegetables are not taxed; soft drinks, candy, beer and wine, and prepared food are taxable. |
| Clothing | 6.25% | yes | Clothing is taxable except during the August sales tax holiday (items under $100). |
| Prescription drugs | 0% | no | |
| Motor vehicles | 6.25% | Motor vehicle sales tax of 6.25% of the sales price minus trade-in; new residents pay a flat $90 new resident tax instead of use tax. |
Local sales taxes
Levied by cities, counties, special purpose districts and transit authorities. Total local sales and use tax is capped at 2%, so the combined rate never exceeds 8.25%. Find the exact combined rate for an address with the official Texas lookup, then type the local part into the calculator above.
Sales tax holidays in 2026
| Holiday | Dates | What qualifies |
|---|---|---|
| Emergency Preparation Supplies Sales Tax Holiday | April 25, 2026 to April 27, 2026 | portable generators under $3,000; certain emergency supplies under $300 (e.g. rescue ladders); batteries, flashlights, portable radios, phone chargers and similar items under $75 |
| ENERGY STAR Sales Tax Holiday | May 23, 2026 to May 25, 2026 | ENERGY STAR air conditioners ($6,000 or less), refrigerators ($2,000 or less), ceiling fans, light bulbs, clothes washers, dishwashers and dehumidifiers |
| Water-Efficient Products Sales Tax Holiday | May 23, 2026 to May 25, 2026 | WaterSense products and water-conserving items such as rain barrels |
Texas also holds an annual back-to-school holiday in August (clothing, footwear, school supplies and backpacks under $100). The Comptroller's page now shows the 2027 dates (Friday, August 6 to Sunday, August 8, 2027); the 2026 dates are no longer displayed.
Worth knowing about Texas sales tax
- Texas holds several sales tax holidays a year: emergency supplies in April, ENERGY STAR and water-efficient products on Memorial Day weekend, and back to school in August. source
- Over-the-counter drugs and medicines with an FDA 'Drug Facts' label are exempt, even without a prescription. source
- Bakery items are tax-free when sold by a bakery (over 50% of sales from a display case), but taxable elsewhere when sold heated or with utensils. source
- During the back-to-school holiday the $100 limit applies per item: two $80 shirts both qualify even though the total is $160. source
- New Texas residents bringing a vehicle registered in their name elsewhere pay a flat $90 instead of 6.25% use tax. source
Property tax in Texas
Texas has no state property tax, and the Comptroller neither sets rates nor collects. Each county appraisal district values property at market value as of January 1, and then every school district, county, city, junior college and special district with a claim on that address adopts its own rate. Owners who disagree with a value can protest to the appraisal review board. A $350,000 house, taxed at the Census ratio of 1.31%, faces roughly $4,592 a year, a large bill by national standards.
The homestead exemption works levy by levy, and the school levy gets the largest one. For a principal residence, school districts must exempt $140,000 of appraised value: on the Census median home of $313,200, school tax falls only on $173,200. Owners 65 or older or disabled exempt another $60,000, which brings the school base on the same home to $113,200, and their school tax is also frozen at a ceiling that can move with them to a new home and continue for a surviving spouse aged 55 or older. Any taxing unit may add a local option exemption of up to 20% of value, at least $5,000, and counties levying farm-to-market or flood control taxes must give $3,000. File Form 50-114 with the appraisal district, generally before May 1.
Whoever owns the home on January 1 owes that year's tax. Bills are due by January 31; from February 1 a 6% penalty and 1% interest apply, and the penalty reaches 12% by July 1.
Property tax on a home in Texas
Typical bill per year
$4,109
| Per month | $342 |
| Median effective rate in Texas | 1.31% |
| Median bill paid | $4,108 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | Texas |
|---|---|
| Median home value (owner-occupied) | $313,200 |
| Median real estate taxes paid | $4,108 |
| with a mortgage | $5,273 |
| without a mortgage | $2,771 |
| Effective rate (tax ÷ value) | 1.31% |
| Rank by effective rate (1 = highest) | 8 of 51 |
| Rank by median bill | 13 of 51 |
How the taxable value is set
County appraisal districts appraise property at market value as of January 1 each year; each local government then sets its own tax rate. Property owners can protest values before the appraisal review board. Who levies the tax: local only (school districts, counties, cities, junior colleges and special districts); Texas has no state property tax
Payment calendar: Property taxes are generally due by January 31 of the following year; unpaid taxes become delinquent on February 1 with a 6% penalty plus 1% interest, rising to 12% penalty by July 1.
Other property tax relief
- Age 65 or older / disabled exemption. School districts must provide an additional $60,000 exemption; other taxing units may add a local option of at least $3,000. source
- School tax ceiling (freeze) for 65+ and disabled. Homeowners receiving the 65+ or disabled exemption have a ceiling on school district taxes; it can transfer to a new home and continues for a surviving spouse aged 55+. source
- Disabled veteran exemptions. Partial exemptions of $5,000 to $12,000 by disability rating; a 100% disabled veteran's homestead is totally exempt. source
Worth knowing about Texas property tax
- The mandatory school homestead exemption is now $140,000, with an extra $60,000 for owners aged 65+ or disabled ($200,000 in total). source
- Counties that collect farm-to-market or flood control taxes must give a $3,000 homestead exemption. source
- Whoever owns the property on January 1 is liable for that year's tax, even if the property is sold later in the year. source
- If a bill is mailed after January 10, the delinquency date moves so the owner always has at least 21 days to pay. source
- The Comptroller does not set rates or collect property tax; it runs a biennial School District Property Value Study used for state school funding. source