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Does Texas Tax Food?

Wondering if Texas taxes food? In 2024, Texas does not tax most grocery food items, making everyday purchases more affordable for residents. However, prepared foods from restaurants, catering services, and other ready-to-eat establishments are subject to the standard sales tax rate of 6.25%, plus any additional local taxes. This approach helps keep basic groceries tax-free while generating revenue from the convenience of prepared meals. Understanding these tax distinctions is important for both consumers managing their budgets and businesses ensuring compliance with Texas tax laws.

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