Houston Sales Tax
Texas. Combined state + county + city. Category exemptions and how it compares to neighboring states.
Category exemptions in Texas
What gets taxed and what's exempt — these rules apply across the entire state of Texas, including Houston.
| Category | Rule | Detail |
|---|---|---|
| Groceries | Exempt | Unprepared food at grocery stores. |
| Clothing | Taxed (full rate) | Everyday apparel and footwear. |
| Prescription drugs | Exempt | Prescribed medications dispensed by a licensed pharmacist. |
Texas sales tax holiday
At 8.25% combined rate, a $500 clothing purchase normally costs $41.25in tax. On the tax-free weekend (within caps), that's $0.00.
Sales tax on common amounts
| Purchase | Tax | Total |
|---|---|---|
| $10 | $0.83 | $10.82 |
| $50 | $4.13 | $54.13 |
| $100 | $8.25 | $108.25 |
| $250 | $20.63 | $270.63 |
| $500 | $41.25 | $541.25 |
| $1,000 | $82.50 | $1082.50 |
| $5,000 | $412.50 | $5412.50 |
| $10,000 | $825.00 | $10825.00 |
Border shopping — neighboring states
For larger purchases, driving to a neighboring state with lower sales tax can save real money. Top metro sales tax in each contiguous neighbor of Texas.
| State | Reference city | Rate | vs Houston | $1,000 savings |
|---|---|---|---|---|
| Texas (current) | Houston | 8.25% | — | — |
| New Mexico | Rio Rancho | 7.63% | -0.63% | $6.25 |
| Oklahoma | Tulsa | 8.52% | +0.27% | — |
| Arkansas | Jonesboro | 8.75% | +0.50% | — |
| Louisiana | Shreveport | 9.35% | +1.10% | — |
Use tax (state where you live) may still apply on out-of-state purchases for items shipped or for registered goods like vehicles. For everyday retail walked across the border, savings are realized at point of sale.
Other cities in Texas
Common questions
- What is the total sales tax rate in Houston?
- Houston, Texas charges a combined sales tax of 8.25%. That's 6.25% state tax plus 2.00% local (county + city + special district) on top.
- Are groceries taxed in Houston?
- Texas exempts unprepared groceries from state sales tax. Hot or prepared food (deli, restaurant, hot bar) is still taxable at the full combined rate.
- Is clothing taxed in Houston?
- Yes — Texas taxes clothing at the full combined rate of 8.25%. Look for the Sales Tax Holiday (Friday-Sunday before school starts (August)) when clothing/footwear < $100, school supplies < $100, backpacks < $100 are tax-free.
- How do I save on sales tax when shopping in Houston?
- Three levers: (1) the Sales Tax Holiday in Friday-Sunday before school starts (August), (2) buy exempt categories (groceries, prescription drugs), (3) drive across the border if a nearby state has a lower rate.
Full data sources and formulas: /sources.
Estimate only — not tax advice. Local sales tax rates change frequently and may include special district levies not modeled here. Verify with the retailer or local taxing authority for large purchases. Category exemption rules and tax holidays change by year — check the Texas Department of Revenue for current rules. Methodology → Texas state rate →
Last reviewed: · Beforeview Editorial · editorial policy