Grocery stores and convenience ... flour, sugar, bread, milk, eggs, fruits, vegetables and similar groceries (food products) are not subject to Texas sales and use tax....

September 12, 2025 - Sign up · Meals are generally taxable in Texas, whether eaten “dine in” or “to go.” · However, as in many states, Texas doesn’t consider bakery food to be taxable as long as that food is sold without eating utensils.

Another aspect to be aware of is ... and where it’s sold. For instance, snack foods are taxable if sold in single-serve portions (under 2.5 ounces) or from vending machines....

Tax is due on natural gas and electricity used to prepare food and operate the restaurant, and on services for pest control, security, janitorial cleaning, waste removal, landscaping, and real property repair and remodeling. Use tax is due on taxable goods or services bought from an out-of-state seller. If the seller does not collect the use tax, the buyer should report and pay the tax on the next sales tax return. For more information about the taxability of specific items, email us at Tax Help.

Sales tax in Texas is a 6.25% statewide rate in 2025, with local taxes of up to 2%, bringing the maximum combined rate to 8.25%. Texas does not participate in the Streamlined Sales Tax initiative (SSUTA), leaving compliance responsibilities ...

January 24, 2025 - See the Texas Comptroller’s website for more information or use the Texas sales tax rate lookup schedule to find rates in specific localities. The food tax in Texas is a special sales tax exemption on the sale of most types of foods.

March 12, 2025 - If a grocery store sells prepared meals or beverages intended for immediate consumption, those items are subject to the 6.25% state sales tax, plus any applicable local taxes (up to 8.25% total).

(e) Food products, candy, and soft drinks are exempted from the taxes imposed by this chapter if sold at an exempt sale qualifying under this subsection or if stored or used by the purchaser of the item at the exempt sale.

December 29, 2020 - Charging Sales Tax on Cottage Foods Bakery Items “Ready-to-eat food is typically taxable even when it is sold “to go.” Tax is not due, however, on bakery items (regardless of size, whether whole pies, for example, or individual portions) when sold without plates or eating utensils.” Selling Only Tax-Exempt Foods?

July 3, 2020 - The state rate is 6.25%, but cities may take up to an addition 2%. There may be additional taxes added for building sport venues or bringing public transportation to smaller cities in the metroplex, as decided on by voters.

February 23, 2024 - Individuals who don’t have a Texas Sales and Use Tax permit can pay this to the Texas Comptroller’s office and report it with Form 01-156. Taxable items in Texas include certain food items, such as soft drinks and candy, beer and wine, and prepared foods[0]

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February 4, 2025 - In Texas, most restaurant sales are subject to sales tax. This includes: Dine-In & Takeout Meals – Any prepared food, whether eaten on-site or taken to go, is taxable.

(7) Sales of food, prepared food, ... licensed by the state for the care of humans are exempt if sold or served to the patients, children, students, or residents of the facility....

July 13, 2021 - When renting or leasing the listed items, no sales tax will be imposed if the contract is for one year. If it is less than a year, then one is liable for tax. By law, the Texas state enforces relevant laws and regulations targeting retail food establishments, including the health and safety ...

February 1, 2024 - However, prepared foods, such as meals from restaurants or food sold at concession stands, are generally subject to sales tax. - Prescription drugs and over-the-counter medications prescribed by a doctor. ... These rules aim to reduce the financial burden on individuals and families by exempting ...

September 2, 2025 - As the business owner are ultimately responsible for paying the state the correct sales tax amount. The sales tax rate in Texas is a blended state rate of 6.25%, plus any local county or city tax rates.

September 22, 2025 - This wasn’t always the sales tax rule in Texas. Senate Bill 1151 added “snack items” to the sales tax code and specified that the state’s exemption for food products does not apply to individual-sized portions as of September 1, 2013.

When you sell taxable goods or services in Texas, or sell to Texas customers, you must collect the 6.25 percent state sales or use tax and the appropriate local sales or use tax. The local tax due cannot be more than 2 percent, so the most tax you can collect is 8.25 percent.