“Texas state sales tax is 8.25% with exclusions for groceries and prescription meds.”
Nope. It’s 6.25%. The maximum is 8.25%, but that’s only when the locals and transit authorities are through with you - such as Houston and most of Harris County. If you buy a car in Texas, it’s still 6.25%, and it’s also deductible (for those that itemize), so the real rate is closer 4.6%, for most people. A GREAT DEAL.
8.25% is what I was told when I moved here, (not Harris county) 1 1/2 years ago. The locals told me it was state wide, but in researching, I see that it is 6.25% statewide with the rest being local. Where I came from in the southeast, state tax was low, 4%, then county and city add ons that took it to about 7-9% most places. State sales tax on autos was 2%. We are wanting to buy a new car, but I can't imagine paying 6.25% tax on a new car and still paying for the tag for it. If you bring a car into Texas with you when you move here, there is a $90 fee added to the first tag no matter what year the car is. In my case I had three $62 tags that had $90 each added. Same for my $55 utility trailer tag except that I showed my homestate original bill of sale, so they charged me sales tax instead of the import fee. I was used to paying $28 each for car tags and $16, I think, on the trailer. Yea, I drive old cars, my wife keeps a newer one, though. Also, all sales tax is a federal income tax deduction if you keep the records and itemize.
Her company has to pay sales tax when they buy their inventory for resale(they import from the mfg and wholesale to regional distributors nationwide) that they did not have before moving to Texas.
Sales tax was the subject of the thread, but I will note that my property tax on a comparable size house, lot and features is 8 times higher here although the purchase prices are about 35%-40% lower for equivelent properties.
We love living in Texas, but the taxes are our main complaint. The people here are just great.