Is Food Taxed in Texas?

Wondering if food is taxed in Texas? In 2024, Texas generally does not impose sales tax on most grocery food items. However, prepared foods, such as those sold in restaurants or ready-to-eat meals, are subject to the standard sales tax rate of 6.25%, plus any local taxes. This distinction helps keep everyday groceries affordable while supporting the hospitality industry. Understanding what qualifies as taxable food can help consumers manage their budgets and businesses ensure compliance with tax regulations.

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