What to Know About Texas Sales Tax and Tax-Free Shopping

Texas sales tax is normally added at checkout rather than included in the displayed price. The statewide rate is 6.25 percent. Cities, counties, special-purpose districts and transit authorities may add local sales taxes totaling up to 2 percent, producing a maximum combined rate of 8.25 percent.^{[Tax rate]}

“Tax-free shopping” does not describe one universal exemption. It may refer to products that are exempt throughout the year, purchases made during one of Texas’s four annual sales tax holidays, or merchandise exported from the United States under documented conditions.

Texas Sales Tax at Checkout

The amount charged on a taxable retail purchase can contain several layers. The Texas Comptroller of Public Accounts administers the state sales and use tax system, while qualifying local jurisdictions decide whether to impose their permitted local portions.

A store’s city name alone may not identify every taxing jurisdiction affecting the location. Special-purpose and transit district boundaries can add another local layer, and annexation or district changes can alter a rate without changing the familiar postal name used by shoppers.

Calculating the Expected Checkout Total

For a fully taxable item, the basic calculation is:

The taxable sales price may include more than the shelf price. Seller-imposed delivery, shipping, handling, assembly or transportation charges can affect the amount on which tax is calculated or determine whether a purchase remains below a holiday price limit.

Why an Online Receipt May Show a Different Local Rate

When an order is not received or fulfilled from a Texas place of business, the general local use tax rule looks to the Texas delivery location. A qualifying remote seller may instead elect to collect a single local use tax rate. The published single local rate is 1.75 percent; it is an option for eligible remote sellers, not a rate selected by the customer. Texas businesses and marketplace providers collecting for marketplace sellers cannot use that alternative.^{[Remote seller rule]}

This can explain why two online retailers produce different local-tax calculations for deliveries to the same address. A different amount is not by itself proof that either receipt is wrong; the seller’s status, fulfillment facts and permitted collection method must also be considered.

Three Forms of Tax-Free Shopping

A store promotion described as a “tax-free sale” can mean something else. A retailer may choose to pay the tax for the customer on a normally taxable product, but that does not convert the product into a legal sales tax exemption. The receipt should still identify the sales tax and indicate that the seller will pay it.

Duty-free airport retail is also separate from the Texas sales tax holiday system. A duty-free label does not mean that ordinary purchases made elsewhere in Texas receive the same treatment.

Purchases That May Be Tax-Free Year-Round

Some frequently purchased items do not require a holiday date. The exemption depends on the legal product category, labeling, preparation method or intended use rather than the season.

Groceries and Ready-to-Eat Food

Basic food products such as flour, sugar, bread, milk, eggs, fruit, vegetables and similar groceries are generally not subject to Texas sales and use tax. Prepared food, hot food, sweetened soft drinks, candy and many individual-sized snack products can be taxable.^{[Food classification]}

Medicines, Wound Care and Supplements

Over-the-counter drugs and medicines for humans that carry an FDA-compliant Drug Facts panel are exempt from Texas sales tax. Wound care dressings such as adhesive bandages, gauze, liquid bandage products and medical tape may also be purchased tax-free without a prescription. Qualifying dietary and nutritional supplements are exempt when they meet the applicable labeling and product-definition rules.^{[Healthcare exemption]}

A cosmetic or personal-care product is not automatically exempt merely because it is sold in a pharmacy aisle. Product labeling can be decisive. For example, a medicated product with a Drug Facts panel may qualify while a visually similar cosmetic product without that classification remains taxable.

The human-use exemption should not be transferred automatically to animal products. Nonprescription medicines for animals are generally taxable unless an applicable veterinarian-prescription rule is met.

Family and Personal-Care Exemptions

Since September 1, 2023, Texas law has provided year-round sales tax exemptions for wound care dressings, adult and children’s diapers, baby wipes, feminine hygiene products, maternity clothing, breast milk pumping products and baby bottles.^{[Effective date]}

These items do not have to wait for the August back-to-school holiday. A cloth or disposable diaper, for example, is not dependent on the holiday’s three-day window or its under-$100 clothing threshold.

Texas Sales Tax Holidays in 2026

Texas schedules four annual sales and use tax holidays. Two occur during the same Memorial Day weekend but cover different product groups and have separate eligibility rules.

The 2026 calendar dates are published by the Texas Comptroller.^{[Holiday calendar]} Eligibility still requires checking the detailed page for the relevant holiday; the dates alone do not make every purchase tax-free.

Emergency Preparation Supplies

The emergency-preparation holiday uses several price ceilings rather than one universal limit. Portable generators must sell for less than $3,000. Emergency ladders and hurricane shutters must sell for less than $300. A separate group of supplies—including specified batteries, carbon monoxide detectors, nonelectric coolers, fire extinguishers, first-aid kits and fuel containers—must sell for less than $75.^{[Price limits]}

The exemption applies to listed emergency products, not to anything a shopper might personally include in an emergency plan. Medical bills, repair services and general-purpose equipment outside the official categories do not qualify merely because they may be useful after a storm or wildfire.

ENERGY STAR Products

The ENERGY STAR holiday covers only specified ENERGY STAR-labeled products. Qualifying categories include air conditioners priced at $6,000 or less, refrigerators priced at $2,000 or less, ceiling fans, incandescent and fluorescent light bulbs, clothes washers, dishwashers and dehumidifiers. ENERGY STAR labeling alone is not enough for products outside the list; examples of nonqualifying categories include clothes dryers, freezers, stoves, water heaters and heat pumps.^{[Product list]}

WaterSense and Water-Conserving Products

Products displaying a WaterSense label or logo may qualify during the water-efficient holiday for personal or business use. A separate category covers certain water-conserving products—such as mulch, rain barrels, drip-irrigation hoses, soil, compost, plants, trees and grasses—when purchased for use at residential property. The residential-use restriction does not apply in the same way to WaterSense-labeled products.^{[Use restriction]}

A sprinkler does not qualify merely because it delivers water, and construction materials do not become exempt simply because they form part of a water-saving project. The official product definitions control.

Back-to-School Purchase Tests

The August holiday covers most qualifying clothing and footwear, specified school supplies and student backpacks when each item sells for less than $100. The threshold applies to each item individually, not to the combined shopping-cart total.^{[Holiday eligibility]}

Items That Are Frequently Misclassified

Only school supplies named within the official qualifying list receive the exemption. An item does not qualify solely because a teacher requested it or because a retailer places it in a back-to-school display.

Discounts Can Move an Item Below the Threshold

The actual discounted selling price controls when a retailer reduces the price at checkout. A shirt normally priced at $100 can qualify if the store discount lowers the selling price below $100. The Comptroller’s example reduces a $100 shirt to $91.75, making it eligible during the holiday.^{[Discount rule]}

A later manufacturer mail-in rebate generally does not lower the selling price at checkout. An instant rebate deducted during the sale is treated differently because it reduces the amount charged at that time.

Backpacks Purchased in Quantity

A customer can purchase up to 10 qualifying student backpacks at one time without giving the seller an exemption certificate. Larger transactions require checking the certificate rule. Framed backpacks, luggage, computer bags, purses and gym bags remain outside the backpack exemption even when priced below $100.

Business Accounts Require Additional Care

A shopper purchasing qualifying school supplies under a business account must provide a properly completed Texas Sales and Use Tax Exemption Certificate. A business account can include payment by business credit card or check, billing through a seller-maintained business account, or use of a business membership at a membership-based retailer.

Online Orders, Shipping and Use Tax

The Payment Date Can Matter More Than the Delivery Date

A qualifying back-to-school purchase may be completed in a store, online, by telephone, by mail or through a custom order. The sale and payment must occur during the holiday period, but delivery may occur afterward.

For 2026, an eligible online order paid successfully on Sunday, August 9 can qualify even when it ships and arrives later. If the payment is declined during the holiday and is not successfully resubmitted until Monday, August 10, the purchase is taxable.^{[Order timing]}

Shipping Can Push an Item Over the Limit

Seller-imposed delivery, shipping, handling and transportation charges are included in an item’s sales price for the holiday threshold. A pair of qualifying jeans priced at $95 with a $10 delivery charge has a total sales price of $105. The entire $105 becomes taxable because the amount is not below $100.^{[Shipping rule]}

When a seller charges delivery separately for each item, each charge follows the related item. A flat package charge can require a different allocation. The invoice details should be reviewed before assuming that a qualifying product remained below the threshold.

An Online Store That Collects No Tax Is Not Automatically Tax-Free

Texas use tax applies when a taxable item is bought without the full Texas sales tax and is delivered to, stored in or used in Texas. The state use tax rate is 6.25 percent, and up to 2 percent in local use taxes may also apply. A Texas purchaser without a sales tax permit may have to report unpaid use tax directly to the Comptroller.^{[Use tax]}

The use tax calculation can also arise when an item is bought in a Texas area with a lower local rate and then brought to an area imposing a higher applicable local rate. The facts depend on where the item is used, stored or consumed.

International Visitors and Exported Merchandise

Texas does not provide a blanket rule allowing every international visitor to remove sales tax at the register by showing a foreign passport. Tax treatment depends on where the customer receives the merchandise and how export is documented.

Seller Ships the Purchase Outside the United States

Texas sales tax is generally not due when the purchaser buys an item in Texas and has the seller ship it directly to another country. Similar treatment may apply when the seller sends the merchandise directly to a freight forwarder for export, provided the seller keeps the required documentation.^{[Export shipment]}

The customer should not take possession of the product in Texas and then assume the direct-shipment rule still applies. Delivery to the shopper and delivery directly into the export chain are different transactions.

Customer Takes Delivery in Texas

Texas sales tax is due when a customer takes delivery of a taxable item in Texas. A seller may later refund the collected tax if the customer supplies acceptable proof of export certifying that the merchandise was taken outside the United States. The seller must retain the export certification for four years.^{[Export proof]}

Correcting Sales Tax on a Receipt

A questionable tax amount should first be reviewed against the product category, final sales price, purchase date and applicable location. A receipt can be wrong, but an unexpected charge may also result from shipping, an excluded product or a different local use tax method.

Receipt Review Sequence

1. Identify the product classification. Confirm whether the product is normally taxable, permanently exempt or eligible only during a named holiday.
2. Check the exact selling price. Review discounts, item-specific delivery charges, handling and other seller charges.
3. Check the transaction date and successful payment time. This is especially relevant for remote holiday orders.
4. Review the taxing location. Compare the street address and the local jurisdictions reflected on the receipt.
5. Contact the seller. Provide the receipt and identify the specific exemption or calculation issue.
6. Request the proper refund documentation when needed. A seller that does not issue the refund directly may need to assign the right to claim it from the Comptroller.

When sales tax is paid on a qualifying item during a Texas sales tax holiday, the purchaser may ask the seller for a refund. The seller may issue the refund or provide Form 00-985, Assignment of Right to Refund, allowing the purchaser to file directly with the Comptroller.^{[Holiday refund]}

A direct refund claim to the Comptroller generally requires a written explanation, identification of the relevant tax period and submission within the applicable limitations period, which is generally four years from the date the tax was due and payable. Supporting invoices, seller information and an assignment form may be required depending on who paid and remitted the tax.^{[Refund procedure]}

Keep the original receipt, order confirmation, payment record, shipment breakdown and correspondence with the seller. An item description such as “merchandise” may be insufficient to establish that a product met a specific exemption.

Before Completing a Purchase

• Confirm whether the item is exempt year-round or only during a sales tax holiday.
• Check the official qualifying-product list instead of relying on the retailer’s department or promotional display.
• Use the item’s final sales price, including applicable seller charges, when testing a holiday threshold.
• For the August holiday, remember that $99.99 may qualify but $100.00 does not.
• Complete online payment within the holiday period and retain proof that the transaction succeeded.
• Use the precise delivery or store address when checking a local tax rate.
• Do not assume that an online seller’s failure to collect tax eliminates Texas use tax.
• For exported goods, arrange the shipment and documentation before taking possession in Texas when possible.
• Keep receipts and detailed product descriptions until any exemption or refund question is resolved.

Government Records for Texas Shopping Tax Rules

• ↩ Texas local sales and use tax frequently asked questions — Provides the 6.25 percent state rate, the 2 percent combined local limit and the 8.25 percent maximum used in “Texas Sales Tax at Checkout.” Checked July 28, 2026.
• ↩ Texas sales and use tax rate tools and jurisdiction records — Supplies the address-based Sales Tax Rate Locator and the separate city, county, transit and special-purpose district rate resources referenced under “Use a Street Address, Not a General Metro Label.” Checked July 28, 2026.
• ↩ Texas remote seller and local use tax rules — Sets out the destination rule and the 1.75 percent single local use tax option discussed in “Why an Online Receipt May Show a Different Local Rate.” The alternative is available only to eligible remote sellers. Checked July 28, 2026.
• ↩ Texas grocery and convenience store sales tax classifications — Provides the food, beverage, prepared-food, snack, discount and rebate distinctions used in “Groceries and Ready-to-Eat Food” and “Discounts Can Move an Item Below the Threshold.” Checked July 28, 2026.
• ↩ Texas sales tax exemptions for healthcare items — Defines the Drug Facts, wound care and dietary supplement exemptions described in “Medicines, Wound Care and Supplements.” Animal medicines and products without the applicable classification may follow different rules. Checked July 28, 2026.
• ↩ Texas family and personal-care sales tax exemption update — Confirms the September 1, 2023 effective date and the exempt product groups listed in “Family and Personal-Care Exemptions.” Checked July 28, 2026.
• ↩ ↩ Texas Comptroller 2026 sales tax holiday calendar — Confirms the April, Memorial Day and August 2026 dates shown in “Texas Sales Tax Holidays in 2026” and the opening date notice. Checked July 28, 2026.
• ↩ Texas Emergency Preparation Supplies Sales Tax Holiday — Supplies the product categories and the less-than-$75, less-than-$300 and less-than-$3,000 thresholds stated under “Emergency Preparation Supplies.” Checked July 28, 2026.
• ↩ Texas ENERGY STAR Sales Tax Holiday — Provides the qualifying product list, appliance price ceilings and nonqualifying examples used in “ENERGY STAR Products.” Checked July 28, 2026.
• ↩ Texas Water-Efficient Products Sales Tax Holiday — Defines the distinction between WaterSense-labeled products and water-conserving products purchased for residential use in “WaterSense and Water-Conserving Products.” The separate 2026 calendar record supplies the current holiday dates. Checked July 28, 2026.
• ↩ ↩ ↩ ↩ ↩ Texas clothing, footwear, backpacks and school supplies sales tax holiday — Provides the August 7–9, 2026 purchase rules, the under-$100 item test, exclusions, backpack limits, business-account requirement, online-order timing, shipping treatment, discount example and seller-refund procedure used throughout “Back-to-School Purchase Tests,” “Online Orders, Shipping and Use Tax” and “Correcting Sales Tax on a Receipt.” Checked July 28, 2026.
• ↩ Texas use tax rates and purchaser reporting rules — Supports the state and local use tax explanation in “An Online Store That Collects No Tax Is Not Automatically Tax-Free,” including reporting rules for purchasers without a Texas sales tax permit. Checked July 28, 2026.
• ↩ Texas online orders and international shipment rules — Supports the treatment described in “Seller Ships the Purchase Outside the United States” for merchandise sent directly abroad or directly to a freight forwarder for export. Documentation must be retained by the seller. Checked July 28, 2026.
• ↩ Texas sales tax rules for merchandise exported after delivery — Confirms that tax is due when the customer takes delivery in Texas and describes the acceptable export proof and four-year record-retention requirement used in “Customer Takes Delivery in Texas.” Checked July 28, 2026.
• ↩ Texas sales and use tax refund claim requirements — Sets out the written-claim, tax-period, assignment and general four-year limitations requirements summarized in “Correcting Sales Tax on a Receipt.” Final acceptance depends on the documentation and review of the individual claim. Checked July 28, 2026.