Texas Sales Tax

On this page you will find handy sales and use tax information about Texas.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Texas that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Rate

6.250%

Range of Local Rates

0% – 2% Some local jurisdictions do not impose a sales tax. Texas has a uniform local tax rate for remote sellers of 1.75%

1.75% local rate for remote sellers, 10-12/19

Local Rates Apply to Use Tax

Yes

AFFILIATE NEXUS

1/1/2012

ECONOMIC NEXUS

Effective 1/1/2019 but not enforced until 10/1/2019

MARKETPLACE NEXUS

10/1/2019

Emergency Preparation Supplies Holiday

April 27-29, 2024

1. Portable generators – less than $3000 per item
2. Hurricane shutters and emergency ladders – less than $300 per item
3. Other specified emergency preparation supplies – less than $75 per item

Annual Energy Star Holiday

May 25-27, 2024

1. Energy Star-qualified air conditioners priced at $6,000 or less; refrigerators priced at $2,000 or less; ceiling fans; incandescent and fluorescent light bulbs; dishwashers; dehumidifiers; programmable thermostats; and clothes washers
2. Water-saving products that are used or planted for conserving or retaining groundwater; recharging water tables; or decreasing ambient air temperature, and so limiting water evaporation. Examples: soaker/drip-irrigation hose, a moisture control for sprinkler/irrigation system, mulch, rain barrel, permeable ground cover surface, plants, trees and grasses, water-saving surfactants, soil and compost.

Water Efficient Products Sales Tax Holiday

May 25-27, 2024

  1. Any product that displays a WaterSense Logo or Label;
  2. Certain water-conserving products for residential properties, including soakers or drip irrigation hoses, moisture control systems for sprinkler or irrigation systems, mulch, rain collection systems, soil and compost, plants, trees and grasses, water saving surfactants, and permeable ground cover surfaces that allow water to reach water collection points.
Annual Back to School Holiday

August 9-11, 2024

1. Clothing and footwear – less than $100 per item (excluding accessories, athletic or protective clothing, and rentals of clothing or footwear); backpacks used by elementary and secondary students are included
2. Most School Supplies – less than $100 per item

Status

Inactive

Amnesty Filing Dates

May 1, 2018 - June 29, 2018

Go to Texas Amnesty Page
AMNESTY INCLUSION PERIODS

Periods prior to January 1, 2018.

TAX TYPES AND CONDITIONS

Various Texas state taxes. Does not apply to periods currently under audit review, IFTA taxes, PUC Gross Receipts assessments, Local Motor Vehicle Tax and Unclaimed Property payments.

AMNESTY BENEFITS

Waiver of penalties and interest.

Status

Inactive

Amnesty Filing Dates

June 12, 2012 - August 17, 2012

Go to Texas Amnesty Page
AMNESTY INCLUSION PERIODS

Reports originally due before April 1, 2012 are eligible.

TAX TYPES AND CONDITIONS

Business sales tax, franchise tax, and other state and local taxes and fees administered by the Comptroller’s office, with the exception of Public Utility Commission gross receipts assessments. The amnesty does not apply to filing periods under audit or identified for an audit.

AMNESTY BENEFITS

Waiver of penalties and interest.

Administration Information
Streamlined Sales Tax Status

Advisory State

NUMBER OF TAXING AUTHORITIES

1,594 Sales Tax Jurisdictions

HOME RULE AUTHORITIES

N/A

Sales Tax Sourcing (Intrastate)

Origin

Sales Tax Return Due Date

The 20th of the month following the reporting period

Exemption Information
RESALE CERTIFICATE

Texas Resale Certificate

TYPES OF EXEMPTIONS

Product types of exemptions: manufacturing, new construction labor, qualified research, data centers, industry (agricultural and timber), necessities to life (food and beverage, health-related)

 

Entity types of exemptions: religious & charitable, homeowners association, educational, government, volunteer fire departments, federal & others

 

Texas Exemption Certificate Forms

State Links
State Tax Web Page

Texas Comptroller

Rate Look-Up Page

Texas Sales Tax Rate Look-Up

Registration Link

Register for Texas Sales Tax

History & Fun Facts
HISTORY

  • The first state-wide sales tax went into effect on September 1, 1961 at a rate of 2 percent. The tax replaced miscellaneous excise taxes.
  • Texas enacted legislation in 2001 to authorize the Comptroller to enter and participate in the Streamlined Sales and Use Tax Agreement. However, the state has not yet made the necessary changes to its laws to be fully compliant with SST.

FUN FACTS
  • During the state’s annual back to school sales tax holiday, belts are exempt from sales tax, but belt buckles are not. Cowboy boots, however, are exempt from sales tax during the holiday.

Texas Adopts Rule Defining Locations Where Orders Are Received for Online Orders, Fulfillment Warehouses

To clarify their position on orders fulfilled from warehouses as well as automated website orders, the Comptroller of Public Accounts for the state of Texas has added a section to the state\’s administrative rules defining which local tax is due on sales.

Gross Receipts Taxes 101

Here is the 101 knowledge that you need to know to get you acquainted with gross receipts taxes…

Texas Creates Exemption for Family Care and Menstrual Items

On September 1, 2023, Texas SB 379 went into effect, making many medical, menstrual, maternity, and family care items exempt from sales tax.

Texas Upholds Nexus Determination for Out-of-State Seller

The Texas Comptroller of Public Accounts upheld a nexus determination for an out-of-state seller making sales of licensed software into Texas.

Texas Clarifies Sales Tax Obligations of Employee Benefit Plan Administrators

In a recent letter ruling, Texas outlined which parts of the services offered by a company that designs and administers employee healthcare and retirement plans for employers are subject to sales tax.

Texas Excludes Furnishing of Academic Transcript from Definition of Information Services

Effective October 1, 2023, Texas has amended the definition of “Information service” for purposes of sales and use tax to exclude the furnishing of an academic transcript.

Texas Non-Profit’s Sales of Learning System, Subscriptions, and Membership Dues are Exempt

A non-profit professional healthcare organization’s sales of a learning system, subscriptions to its journal, and annual membership dues were exempt from Texas sales and use tax.

Collection and Remittance of Tax on Credit Rating Services for Legal Entities Begins July 1, 2023 in Texas

The Texas Comptroller of Public Accounts has issued a policy letter stating that the provision of credit rating services for legal entities is subject to sales and use tax, and taxpayers must begin collecting and remitting tax on these services beginning July 1, 2023.

Texas Letter Ruling Says Audiovisual and Videoconferencing Equipment and Services are Subject to Tax

The Texas Comptroller released a Letter Ruling on January 3, 2023, which found that a taxpayer’s audiovisual and videoconferencing equipment and the related services, both on-site and remote, are taxable under Texas law.

Texas Appeals Court Denies For-Profit Correctional Facility’s Use of Government Exemption

A Texas appeals court has denied a refund claim brought by a private operator of correctional and detention facilities, holding a lower court\’s decision that the company does not act as a instrumentality of the state or federal government while operating state and federal prisons.

Texas Comptroller Explains Remote Seller, Marketplace Tax Policies

The Texas Comptroller of Public Accounts has offered new guidance and answers to FAQs for marketplace sellers and marketplace provides.

Sweepstakes are Taxable Amusement Service, Texas Court Rules

After the state comptroller of public accounts audited Sidetracked Bar for periods between July 2011 and December 2017, the comptroller’s office assessed sales tax, penalties, and interest, totaling about $400,000, which Sidetracked paid under protest.

Texas Clarifies Policy Following Letter Ruling that Determined Worker’s Compensation Medical Exams are Subject to Tax

Following a letter ruling released on the subject in October, the Texas Department of Revenue has clarified that doctors performing exams for the state\’s Division of Workers\’ Compensation are not required to collect sales tax until October 1, 2023, to allow the Worker\’s Compensation industry to seek a legislative change.

Texas Clarifies Manufacturing Exemptions Do Not Apply to Service Providers

In a memo released in the wake of its success in a court case addressing the issue earlier this year, Texas elaborated on its reasons for denying companies performing refurbishment services a manufacturing exemption on wrapping and packaging items.

Out-of-State Car-Sharing Platform Not Responsible for Collecting Tax in Texas

Texas issued a private letter ruling stating that an out-of-state peer-to-peer car sharing platform (taxpayer) is not responsible for collecting and remitting Texas motor vehicle gross rental receipts tax since it is not the owner of the vehicles on the platform.

Texas rules payment card management program is a nontaxable payment processing service

A private letter ruling by the Texas Comptroller of Public Accounts found in favor of a taxpayer, defining its payment card management (PCM) program as a nontaxable payment processing service, not a taxable data processing service.

Online learning courses ruled nontaxable in Texas

Subscriptions to online learning services are not taxable in the state of Texas, according to a July ruling in a private letter published by the state comptroller, but planning services purchased by teachers are subject to tax.

Service Providers: Don’t Assume You Are Always Tax-Free!

Service providers—especially in the professional services realm—can be quick to assume that their services are nontaxable and that they do not need to collect sales tax and remit sales tax on their sales of services.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Texas Rules Loan Document Packages Subject to Sales Tax

The Texas Court of Appeals ruled that a law firm’s purchases of packages containing the legal documents necessary to execute residential mortgage loans should be classified as purchases of data processing services, which is subject to sales tax.

County Fair Associations Exempt From Sales Tax in Texas

The Texas Comptroller of Public Accounts adopts amendments to §3.322 which covers exempt organizations in the state which includes county fair associations.

Texas Determines the Sales and Use Tax Treatment of a Mobile Ordering Application Platform

In a private letter ruling, the Texas Comptroller clarified the sales and use tax requirements for a mobile ordering application platform where restaurants receive food orders.

Economic Nexus State by State Chart

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Texas Court Dismisses Local Franchise Fee Suit Against Streaming Companies

The City of New Boston, TX filed a suit against Hulu and other streaming services claiming that they owed local franchise fees.