The state levies a sales and use tax of 6.25% on sales of tangible personal property and certain services. Cities, counties, and transit authorities may add to the sales tax rate up to a maximum combined state and local rate of 8.25%.
Texas grants sales and use tax exemptions on machinery and equipment utilized in the manufacturing process. Purchases of machinery and equipment, replacement parts, and accessories that have a useful life of more than six months, and that are used or consumed in the manufacturing, processing, fabricating, or repairing of tangible personal property for ultimate sale, are exempt from state and local sales and use tax.
Natural gas and electricity are exempt from sales taxes when sold to commercial businesses that are “predominantly” manufacturing.
Groceries and over-the-counter drugs and medicines, as well as prescription drugs, are exempt from sales tax.
| SALES & USE TAX RATES IN SELECTED METRO-AREA COMMUNITIES | |||||||
|---|---|---|---|---|---|---|---|
|
CITY |
COUNTY |
STATE |
COUNTY |
CITY |
METRO |
SPECIAL |
TOTAL |
|
Austin |
Travis |
6.25% |
|
1.00% |
1.00% |
|
8.25%
|
|
Austin |
Williamson |
6.25
|
|
1.00
|
1.00
|
|
8.25
|
|
Bastrop
|
Bastrop
|
6.25 |
0.50% |
1.50 |
|
|
8.25 |
|
Buda |
Hays |
6.25 |
0.50 |
1.50 |
|
|
8.25 |
|
Cedar Park |
Williamson |
6.25 |
|
2.00 |
|
|
8.25 |
|
Dripping Springs |
Hays |
6.25 |
0.50 |
1.25
|
|
0.25% |
8.25 |
|
Elgin |
Bastrop |
6.25 |
0.50 |
1.50 |
|
|
8.25 |
|
Georgetown |
Williamson |
6.25 |
|
2.00 |
|
|
8.25 |
|
Hutto |
Williamson |
6.25 |
|
2.00 |
|
|
8.25 |
|
Jarrell |
Williamson |
6.25 |
|
2.00 |
|
|
8.25 |
|
Kyle |
Hays |
6.25 |
0.50 |
1.50 |
|
|
8.25 |
|
Lago Vista |
Travis |
6.25 |
|
1.00 |
1.00 |
|
8.25 |
|
Leander |
Williamson |
6.25 |
|
1.00 |
|
1.00 |
8.25 |
|
Liberty Hill |
Williamson |
6.25 |
|
1.75 |
|
0.25 |
8.25 |
|
Lockhart |
Caldwell |
6.25 |
0.50 |
1.50 |
|
|
8.25 |
|
Luling |
Caldwell |
6.25 |
0.50 |
1.50 |
|
|
8.25 |
|
Pflugerville |
Travis |
6.25 |
|
1.50 |
|
0.50 |
8.25 |
|
Rollingwood |
Travis |
6.25 |
|
1.50 |
|
0.50 |
8.25 |
|
Round Rock |
Williamson |
6.25 |
|
2.00 |
|
|
8.25 |
|
San Marcos |
Hays |
6.25 |
0.50 |
1.50 |
|
|
8.25 |
|
Smithville |
Bastrop |
6.25 |
0.50 |
1.50 |
|
|
8.25 |
|
Sunset Valley |
Travis |
6.25 |
|
1.875 |
|
|
8.125 |
|
Taylor |
Williamson |
6.25 |
|
2.00 |
|
|
8.25 |
|
West Lake Hills |
Travis |
6.25 |
|
1.50 |
|
0.50 |
8.25 |