What Items Are Exempt from Sales Tax in Texas?

Texas offers a variety of sales tax exemptions on essential goods, helping consumers save money on necessary purchases. Understanding these exemptions can help you make informed buying decisions and avoid unnecessary tax costs.

Common Sales Tax Exemptions in Texas

Several categories of goods are exempt from sales tax in Texas, including:

1. Groceries

Most unprepared food items are not subject to sales tax. This includes:

  • Fresh fruits and vegetables

  • Meat, poultry, and seafood

  • Dairy products (milk, cheese, eggs, yogurt)

  • Bread, rice, pasta, and cereal

  • Canned and frozen foods

Taxable exceptions:

  • Prepared or hot foods (e.g., deli meals, rotisserie chickens)

  • Candy and soft drinks

  • Dietary supplements

2. Prescription Drugs and Medical Devices

Medical necessities are typically tax-exempt in Texas, including:

  • Prescription medications

  • Insulin and diabetes testing supplies

  • Prosthetics and orthopedic devices

  • Hearing aids and prescription eyeglasses

Over-the-counter medications and non-prescription vitamins are taxable unless purchased with a prescription.

3. Agricultural and Farming Supplies

Certain agricultural products used in farming and ranching qualify for tax exemptions, such as:

  • Seeds and fertilizers

  • Livestock feed and medicines

  • Farm machinery and irrigation equipment

Farmers and ranchers must have an Agricultural and Timber Exemption Registration Number to claim these exemptions.

4. Educational and Religious Items

Organizations such as public schools, churches, and nonprofit groups may qualify for tax exemptions on:

  • Textbooks and instructional materials

  • Religious literature and publications

  • Certain fundraising sales

5. Manufacturing and Business Purchases

Businesses in manufacturing, research, and development may be eligible for sales tax exemptions on:

  • Machinery and equipment used in production

  • Raw materials and component parts

  • Software used in development

Final Thoughts

Texas provides sales tax exemptions for essential goods, including groceries, prescription medications, medical devices, agricultural supplies, and business-related equipment. Understanding these exemptions can help you save money on everyday and business-related purchases.

George Dimov