Texas's statewide sales tax is 6.25%, and once the population-weighted local average (1.95%) is added on, the combined rate works out to about 8.2% — among the higher combined sales tax rates nationally (ranked #14 of 47 states + D.C. by combined rate).
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Texas's statewide sales tax is 6.25%, and once the population-weighted local average (1.95%) is added on, the combined rate works out to about 8.2% — among the higher combined sales tax rates nationally (ranked #14 of 47 states + D.C. by combined rate).
Texas's local sales taxes are fairly uniform across the state, so the rate above should be close to what you'll actually see on most receipts, wherever you are.
Texas is also one of only nine US states with no state income tax — sales tax carries more of the load here than in most states, which is part of why the rate feels a bit more visible at checkout.
Like most states, Texas allows employers to pay tipped workers a lower base cash wage under a federal or state "tip credit," as long as tips bring total pay up to at least the regular minimum wage — which is part of why tipping culture is taken seriously in the US service industry.
Common bill totals at typical US tipping percentages.
| Bill | 15% | 18% | 20% |
|---|---|---|---|
| $20.00 | $3.00 | $3.60 | $4.00 |
| $30.00 | $4.50 | $5.40 | $6.00 |
| $40.00 | $6.00 | $7.20 | $8.00 |
| $50.00 | $7.50 | $9.00 | $10.00 |
| $100.00 | $15.00 | $18.00 | $20.00 |
Texas's statewide sales tax is 6.25%, and once the population-weighted local average (1.95%) is added on, the combined rate works out to about 8.2% — among the higher combined sales tax rates nationally (ranked #14 of 47 states + D.C. by combined rate).
Like most states, Texas allows employers to pay tipped workers a lower base cash wage under a federal or state "tip credit," as long as tips bring total pay up to at least the regular minimum wage — which is part of why tipping culture is taken seriously in the US service industry.
No — Texas is one of nine US states with no state income tax. That doesn't directly affect your tip, but it's part of why sales tax tends to be a bigger, more visible line item on receipts here than in states that lean more on income tax.
No. This tool calculates the tip a customer leaves on a bill. A payroll or paycheck tip calculator is a different, employer-side tool for reporting tip income and calculating wages.
Texas charges a 6.25% statewide sales tax, and most cities and counties add local option taxes on top — capped by state law so that no combined rate exceeds 8.25%. That cap is the reason the rates below are so uniform: Texas's largest cities all sit at the 8.25% maximum. A few smaller cities and towns run below the cap, but for restaurant dining in any major Texas metro, 8.25% is the number to use.
| City | Combined sales tax rate |
|---|---|
| Houston | 8.25% |
| Dallas | 8.25% |
| San Antonio | 8.25% |
| Austin | 8.25% |
| Fort Worth | 8.25% |
| El Paso | 8.25% |
| Arlington | 8.25% |
| Plano | 8.25% |
Houston — business dinners, museum district, and world cuisine. A $150 business dinner for two in the Museum District or Galleria area runs $12.38 in tax at 8.25%, and an 18% pretax tip of $27.00 brings the total to $189.38. Business entertaining in Houston commonly tips the full 20% on the pretax subtotal — $30.00 on $150 — which lands at $192.38 with tax and is fully in line with what the city's expense-account restaurants expect. Houston's diverse restaurant scene (Vietnamese, Tex-Mex, Gulf seafood) all follow the same percentage norms; the only distinction is that counter-service taquerias and barbecue joints are typically cash-friendly, with 10-15% or loose change left in the jar.
Austin — live music venues, food trucks, and 6th Street bars. At a food truck on a $14 order, tipping is discretionary — $2-3 or rounding up is standard, and 15% ($2.10) is a respectful baseline for great truck service. At a live-music venue bar, the Austin norm is $1-2 per drink at the bar, or 20-25% on a running tab: on a $60 tab, 20% is $12.00 and 25% is $15.00. For a sit-down dinner in South Congress or downtown on a $120 check for two, tax is $9.90 at 8.25%, an 18% tip is $21.60, and the total is $151.50 — about $75.75 per person, the comfortable midrange for a night out in the capital.
San Antonio — River Walk dining, Tex-Mex, and family meals. River Walk restaurants cater heavily to tourists and conventions, and the expected tip there is 18-20% — on a $90 River Walk dinner for two, 8.25% tax is $7.43 and a 20% tip of $18.00 yields a $115.43 total. At a family Tex-Mex restaurant on a $60 check for four (drinks and queso included), 8.25% tax is $4.95, an 18% tip is $10.80, and the $75.75 total works out to just under $19 per person — the tip is $2.70 per person, which nobody argues about. Dallas and Fort Worth follow the same patterns: 18% is the baseline, 20% is standard for good service, and the 8.25% cap means the tax column is easy to predict.
| Bill | TX 8.25% tax | 18% pretax tip | Total (bill+tax+tip) | Per person (for 2) |
|---|---|---|---|---|
| $50.00 | $4.13 | $9.00 | $63.13 | $31.57 |
| $100.00 | $8.25 | $18.00 | $126.25 | $63.13 |
| $200.00 | $16.50 | $36.00 | $252.50 | $126.25 |
Because Texas's major cities all sit at the 8.25% cap, these totals hold across Houston, Dallas, Austin, San Antonio, and Fort Worth alike. The tip is computed on the pre-tax subtotal, so the tip column never changes with the tax rate — only the tax column would shift, and only in the handful of smaller Texas towns that run below the cap.
Compare with nearby states: Oklahoma · Louisiana · Arkansas · New Mexico