Is There Tax on Food in Texas?

Curious about whether there is tax on food in Texas? In 2024, Texas exempts most grocery food items from sales tax, making everyday groceries more affordable for residents. However, prepared foods sold by restaurants, catering services, and other ready-to-eat establishments are taxable at the standard rate of 6.25%, plus any applicable local taxes. This policy helps keep basic food costs low while generating revenue for public services through the taxation of convenience foods. Understanding these distinctions can help consumers and businesses navigate Texas’s tax landscape effectively.

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