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.

Local Rates Apply to Use Tax

Yes

Annual Severe Weather Holiday

April 28-30, 2018

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 26-28, 2018

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.

Annual Back to School Holiday

August 10-12, 2018

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.

Sales Tax Holiday Season is Here

With sales tax holiday season right around the corner, now is a good time to look at how sales tax holidays work and examine the different types of holidays that states offer.

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

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.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

Mobile Application Program and Bundled Services Subject to Texas Sales Tax

In a private letter ruling, the Texas Comptroller found a taxpayer’s mobile application program and bundled services taxable as data processing services.

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Cloud-Based Website Hosting Services Taxed in Texas

Texas Comptroller deemed a corporation’s cloud-based website hosting services taxable as data processed for customers located within Texas in a private letter ruling.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

Upcoming Texas Sales Tax Holiday for Water-Saving and Energy-Saving Products

The annual Texas sales tax holiday for water-saving and energy-saving products will take place May 26-28, 2018.

Texas Updates Rule for Computer Hardware, Programs and Services

Texas updated its sales tax rule based on previously enacted legislation and department policy for computer hardware, programs, services, and sales.

Multistate Tax Commission Updates Its Uniform Sales & Use Tax Exemption Certificate

The Multistate Tax Commission (MTC) revised its Multijurisdictional Uniform Sales & Use Tax Exemption/Resale Certificate on January 22, 2018 to reflect two state changes.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Texas Announces Dates for 2018 Tax Amnesty Program

The Texas 2018 tax amnesty program will run from May 1, 2018 to June 29, 2018.

Texas to Establish Tax Amnesty Program

Texas has enacted legislation that requires the Comptroller of Public Accounts to establish a limited-time tax amnesty program for delinquent or unregistered taxpayers. Penalties and interest may be waived.

Texas Offers Guidance on Partial Exemption for LLCs with Medical Purpose

In Texas, an LLC with a medical purpose may claim a partial sales and use tax exemption on purchases of taxable items, much like a joint venture or partnership.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Texas Enacts Exemption on Insurance Services Performed by Certain CPA Firms

Texas enacted a sales tax exemption for insurance services performed by certain CPA firms, effective 01/01/18. More…

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Sales of Digital Security Certificates Not Taxable in Texas

A web security services company was not liable for Texas sales tax on sales of digital (SSL) certificates which allowed customers to establish secure, encrypted connections over the Internet.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

Bill Pay Services Provided to Banks Exempt in Texas

Electronic bill pay services provided by a taxpayer to banks for use by the bank’s customers were determined to be nontaxable professional services rather than taxable data processing services for purposes of Texas sales tax.

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…