2026 AUSTIN SALES TAX

Austin Sales Tax 2026

Austin sales tax is 8.250% — and it cannot be higher. Texas caps combined local sales tax at 2.000% on top of the 6.250% state rate, and Austin has reached that ceiling with a 1.000% city tax plus a 1.000% transit tax. The ceiling is why almost every city in the metro charges exactly the same rate.

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Austin, TX · 8.25%

TOTAL WITH TAX$108.25$8.25 of sales tax
Price 92.4%Sales tax 7.6%
Price before tax$100.00
Sales tax at 8.25%+$8.25
Total$108.25
— Texas state sales and use tax (6.25%)$6.25
— City of Austin (1%)$1.00
— Austin MTA (Capital Metro) (1%)$1.00
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Sales tax is charged on the delivery address, not the billing address, and some goods are exempt or taxed differently. See the methodology and source list.

The calculator is pre-filled at 8.250%. Unlike California, where rates vary street by street, the Texas cap means you will find the same figure almost everywhere in the Austin area — the rate box is editable mainly for use elsewhere in the state.

Texas Comptroller ratesEffective 2026 city rate tableFree to Use

RATE BREAKDOWN

Austin Sales Tax Rate, Broken Down

Austin sales tax rate breakdown for 2026: 6.25% Texas statewide base plus 2% local tax, giving a combined 8.25%
How the 8.25% rate is built, and how it compares with the rates around it.
ComponentRate
Texas state sales and use tax6.25%
City of Austin1%
Austin MTA (Capital Metro)1%
Total Austin sales tax8.25%

TX SALES TAX

The 2% Cap That Sets Austin Sales Tax

Texas sets a state sales and use tax rate of 6.250% and allows local jurisdictions — cities, counties, transit authorities and special purpose districts — to add up to 2.000% in total. Not each: in total, for any given address.

Austin uses the full allowance. The City of Austin levies 1.000% and the Austin MTA, the transit authority behind Capital Metro, levies another 1.000%. Together that is the whole 2.000%, which is why Travis County levies no county sales tax within the city — there is no room left under the cap.

This is structurally different from California, where district taxes stack and cities can differ by a point and a half within one county. In Texas, once a metro hits the cap, the rate stops moving.

TX SALES TAX

Why Every Austin Suburb Charges 8.25% Too

Round Rock, Cedar Park, Georgetown, San Marcos, Pflugerville, Leander, Buda, Kyle, Lakeway and Bee Cave all charge 8.250%. They get there by different routes — some with a 2.000% city tax, some with a smaller city tax plus a county or special district tax — but the cap means they all land on the same total.

For a shopper this is the useful part: in the Austin metro, unlike in Southern California, there is no rate arbitrage. Crossing a city line does not change the tax on a purchase, because every jurisdiction nearby is already at the ceiling.

NEARBY RATES

How Austin Compares Nearby

Every sizeable city in the Austin metro is at the 2% local cap, so the rates are identical even though the underlying city and district taxes differ:

CitySales tax ratevs Austin
Austin8.25%—
Round Rock8.25%same
Cedar Park8.25%same
Georgetown8.25%same
San Marcos8.25%same
Pflugerville8.25%same
Leander8.25%same
Buda8.25%same
Kyle8.25%same
Lakeway8.25%same
Bee Cave8.25%same

TAXABLE OR NOT

What Austin Sales Tax Applies To

Texas exempts more than California does — over-the-counter medicine in particular — and it runs an annual sales tax holiday, which California does not.

  • Groceries and most unprepared food are exempt from Texas sales tax
  • Both prescription and over-the-counter medicines are exempt
  • Restaurant meals, prepared food and soft drinks are taxable at 8.250%
  • Texas taxes a specific enumerated list of services; anything not on that list is untaxed
  • Texas runs an annual sales tax holiday on qualifying clothing, footwear and school supplies

FREQUENTLY ASKED QUESTIONS

Austin Sales Tax Questions

What is the sales tax rate in Austin?+

Austin charges 8.250%. That is the Texas state rate of 6.250%, plus 1.000% for the City of Austin and 1.000% for the Austin MTA transit authority.

Why is Austin sales tax exactly 8.25%?+

Texas caps total local sales tax at 2.000% on top of the 6.250% state rate, making 8.250% the legal maximum. Austin levies the full 2.000% through its city tax and its transit tax, so it sits at the ceiling.

Do Austin suburbs charge a different rate?+

No. Round Rock, Cedar Park, Georgetown, San Marcos, Pflugerville, Leander, Buda, Kyle, Lakeway and Bee Cave are all at 8.250%. They combine city, county and district taxes differently, but the 2.000% cap means every one of them reaches the same total.

How much is sales tax on $100 in Austin?+

$8.25, for a total of $108.25. Because the rate is capped, that figure is the same across effectively the entire Austin metro.

Is food taxed in Austin?+

Groceries and unprepared food are exempt from Texas sales tax. Restaurant meals, prepared food and soft drinks are taxable at the full 8.250%. Texas also exempts over-the-counter medicines, which California does not.

Does Travis County add its own sales tax in Austin?+

Not inside the city. The 2.000% local allowance is already used up by the City of Austin's 1.000% and the Austin MTA's 1.000%, leaving no room under the cap for a county tax at those addresses.

What rate applies to an order shipped to Austin?+

8.250%. Texas sources the sale to the delivery address, and since the whole metro is at the cap, the rate is the same wherever in the Austin area it is delivered.

RATE SOURCE

Where These Rates Come From

Austin's 8.250% comes from the Texas Comptroller's city rate table, which lists the City of Austin at 1.000% and the Austin MTA at 1.000% over the 6.250% state rate. Because Austin is at the statutory cap, the rate cannot rise without a change in state law. Texas Sales and Use Tax Rates — city rate table, effective 2026 city rate table.

Disclaimer: Planning use only. Austin sits at the Texas statutory cap, but special purpose districts elsewhere in the state vary — confirm with the Comptroller before filing.

Reviewed by: Paycheck Calculator Editorial Team

Rate table effective: 2026 city rate table

OTHER RATES

Sales tax rates elsewhere