Austin sales tax guide
Shopping in Austin means paying one of the higher combined sales tax rates in Texas: 8.25%, against a statewide average combined rate of 8.2%. Among the 30 major US cities we track, Austin ranks 17 by combined rate. This guide shows how the rate is built and what it adds to real purchases.
How the Austin rate is built
At the Texas cap: 6.25% state + 1.00% city + 1.00% CapMetro transit. Groceries are exempt.
No single government sets the 8.25% figure. The state of Texas sets the base rate of 6.25%, and county, city and special-district taxes stack on top of it. That stacking is why the rate can change across a city boundary — and why the address of the sale, not the seller's home address, decides the tax on most transactions.
What the rate does to real purchases
| Purchase | Tax at 8.25% | Total |
|---|---|---|
| $25 purchase | $2.06 | $27.06 |
| $100 purchase | $8.25 | $108.25 |
| $500 purchase | $41.25 | $541.25 |
| $1,000 purchase | $82.5 | $1,082.5 |
| $10,000 purchase | $825 | $10,825 |
| $35,000 car (where vehicles are taxed at sale) | $2,887.5 | $37,887.5 |
Groceries: Groceries are generally exempt from the state sales tax; local rules can differ. Prepared foods and candy/soda exceptions apply. Prepared food and restaurant meals are taxed at the full rate in most jurisdictions, even where groceries for home consumption are exempt or reduced.
Austin vs other Texas cities
Every city below shares the same 6.25% Texas base rate — the differences are local layers. Austin sits 0.05 points above the statewide average combined rate of 8.2%.
| City | Combined rate | Tax on $1,000 |
|---|---|---|
| Houston | 8.25% | $82.5 |
| San Antonio | 8.25% | $82.5 |
| Dallas | 8.25% | $82.5 |
| Austin (this guide) | 8.25% | $82.5 |
| Fort Worth | 8.25% | $82.5 |
What this means in Austin
On planned purchases the rate is a line item, not a rounding error: $825 on $10,000, which is $5 more than the same purchase at the Texas average rate. Households near a lower-rate city boundary sometimes route vehicles, appliances and furniture purchases accordingly; on weekly spending, the difference is a few dollars a month and rarely worth a trip.
Selling in Austin
If your business delivers into Austin, the rate your customer pays is generally the combined rate at their address. Once your Texas sales pass the state's economic-nexus threshold you must register, collect and remit — the threshold and filing basics are covered on the Austin sales tax page, and the statewide picture is in the Texas tax guide.
Sales tax · combined rate
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
Austin sales tax FAQs
What is the sales tax rate in Austin?
The combined sales tax rate in Austin is approximately 8.25%, made up of the Texas state rate plus county, city and district taxes. At the Texas cap: 6.25% state + 1.00% city + 1.00% CapMetro transit. Groceries are exempt.
How much tax do I pay on a $100 purchase in Austin?
At 8.25%, a $100 taxable purchase in Austin carries about $8.25 in sales tax, for a total of $108.25. On $1,000 the tax is $82.5; on $10,000 it is $825.
Why is the Austin rate different from the rest of Texas?
Sales tax is stacked: the state sets a base rate and local governments add their own. Austin adds local layers that bring the combined rate to 8.25%, compared with a statewide average combined rate of about 8.2% — a gap of 0.05 points.
How does Austin compare with other US cities?
Austin ranks 17 of the 30 major cities in our dataset by combined rate (dataset average 7.93%). The highest is Seattle at 10.35% and the lowest is Portland at 0%. Against the all-state average combined rate of 6.61%, Austin is 1.64 points higher.
Are groceries taxed in Austin?
Groceries are generally exempt from the state sales tax; local rules can differ. Prepared foods and candy/soda exceptions apply.
Where can I verify the exact rate for a Austin address?
The 8.25% figure is the typical combined rate inside city limits; district taxes can shift it block by block. Verify the rate for a specific address with the Texas Department of Revenue before a major purchase or a filing.
Reviewed by Tahir Shehzad, ACMA · State tax data reviewed November 2026 against official sources — see our Methodology and Editorial Policy. Figures are educational estimates, not tax or financial advice. For a filing decision, confirm with the Texas Department of Revenue.