What is the sales tax rate in Austin, Texas?

Austin's combined sales tax rate is 8.25%. That is the 6.25% Texas state rate plus 1% for the City of Austin and 1% for the local transit/county authority, which together hit the Texas 2% local cap.

How do I work out the tax that is already inside a total price?

Switch to reverse mode and the tool divides the tax-inclusive total by 1.0825 to recover the pre-tax base, then reports the embedded tax. This is useful for receipts that only show a grand total.

Are groceries taxed in Austin?

Most unprepared food and grocery staples are exempt from Texas sales tax, so they are taxed at 0%. Prepared food, candy, soft drinks and restaurant meals are taxable at the full 8.25% combined rate.

Are prescription drugs taxable in Texas?

No. Prescription medicines and many over-the-counter drugs labeled with a Drug Facts panel are exempt in Texas, so the tool applies a 0% rate when you select that item type.

Does the rate change in other parts of Travis County?

It can. 8.25% is the maximum and the rate inside Austin city limits, but some unincorporated areas or special districts have a different local split. Always confirm the exact jurisdiction rate for large purchases.

Austin Combined Sales Tax Calculator

The Austin Combined Sales Tax Calculator applies Austin’s full 8.25% rate to any purchase and shows exactly where the money goes. Texas has no state income tax but leans on sales tax, and the headline rate is built from three layers stacked together. This tool computes the tax on a pre-tax price, extracts the tax hidden inside a tax-inclusive total, and respects the most common Texas exemptions so groceries and prescriptions are not over-taxed.

How it works

Austin’s rate is a sum of jurisdiction layers: 6.25% Texas state, 1% City of Austin and 1% transit/county, totaling 8.25%. In forward mode the tool computes tax = price x 0.0825 and total = price + tax. In reverse mode it treats your amount as tax-inclusive and recovers the base with base = total / 1.0825, then tax = total - base.

Item type controls the rate. Taxable goods use the full 8.25%. Common Texas exemptions — unprepared groceries and prescription/qualifying OTC medicine — are set to 0%, matching Texas Comptroller rules. The breakdown then splits the total tax back into its state, city and transit components so you can see each share.

Tips and example

A $100 taxable purchase generates $6.25 state, $1.00 city and $1.00 transit tax — a $8.25 total tax and a $108.25 grand total. Run the same $108.25 through reverse mode and the tool returns the $100.00 base and $8.25 embedded tax.

Remember 8.25% is the Austin city-limit and Texas maximum rate. Special districts can differ, so verify the precise jurisdiction for high-value or business purchases.