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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 Sales Tax Rates
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
Remote Seller Nexus Rules
AFFILIATE NEXUS

1/1/2012
ECONOMIC NEXUS

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

10/1/2019
Sales Tax Holidays
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
Sales Tax Amnesty
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.

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.

Maine and Texas Governors Sign Sales Tax Exemptions for Firearm Safety

Bills in Maine and Texas have been signed by their state’s respective governors exempting sales of firearm lock boxes, safes, and safety equipment from state sales tax.

Three Years of South Dakota v. Wayfair: Local Tax Issues

Learn why managing local taxes is such a large challenge for taxpayers post-Wayfair and about local efforts to simplify compliance. This is part 4 of our 5 part series on three years of the Wayfair decision.

Southwest Sales Tax Updates

What’s been happening in the Southwestern sales tax landscape lately? Let’s dig into some updates.

Texas Provides Guidance Regarding Manufacturing Exemptions

The Texas Comptroller issued new guidance stating that exemptions for state sales and use tax apply to those who manufacture, fabricate, or process tangible personal property for sale.

Texas Issues FAQs for Remote Sellers and Marketplace Providers and Sellers

The Texas Comptroller has posted FAQs on its website regarding post-Wayfair obligations for remote sellers, marketplace sellers, and marketplace providers.

Order Management Services Taxable as Data Processing in Texas

A taxpayer’s provision of order management services was properly subject to Texas sales and use tax since the services qualified as taxable data processing services

Internet Access Service Charges Exempt in Texas Beginning July 1, 2020

Effective July 1, 2020, separately stated charges for internet access are no longer subject to Texas sales tax.

Texas Issues Updated Guidance on Taxability of Educational Products and Services

Texas has provided updated guidance discussing the tax treatment for sales of educational products and services.

Texas Amends Rules for Remote Sellers to Establish Economic Nexus

Starting October 1, 2019, remote sellers with sales exceeding $500,000 in total Texas revenue must register to collect and remit tax.

Sales Tax Nuances of Trade Show Attendance

Trade show attendance in another state can create physical nexus and trigger sales tax obligations. Learn key nuances of trade show rules across the states.

Texas Adopts Economic Nexus Provisions for Franchise Tax

Texas has amended a tax regulation to apply the state’s economic nexus threshold to Texas franchise tax, beginning January 1, 2020.

The Southern States’ Reaction to SD v. Wayfair; A Summary

Post-Wayfair, significant sales tax legislative changes have happened on a daily basis, and the Southern states are no exception. We’ve seen a flurry of sales tax legislative activity recently regarding changes for remote sellers making sales into Southern states. If…

Retailers Allowed to Pay Sales Tax on Products Sold to Customers in Texas

Texas has enacted legislation allowing retailers to pay sales tax on products they sell to customers.

Texas Enacts Marketplace Nexus Legislation

Texas has enacted legislation with marketplace nexus provisions, effective October 1, 2019.

Online Subscription-Based Educational Curriculum Not Taxable in Texas

Sales of an online subscription-based educational curriculum were exempt from Texas sales and use tax since the curriculum is primarily instructional in nature.

Texas Authorizes State Comptroller to Establish Uniform Local Tax Rate for Remote Sellers

Texas has enacted legislation that authorizes the state comptroller to establish a single uniform tax rate for remote sellers to collect and remit local sales and use taxes.

Non-Profit’s Construction Contract Not Exempt in Texas Since Lease Was Not Sufficiently Long

A non-profit school’s lease was not considered an exempt contract in Texas since the lease was not sufficiently long in relation to the life of the improvements to the realty.

Hotel Guest Consumables Subject to Texas Sales Tax

A Texas hotel was not entitled to a sale for resale exemption on guest extras provided to customers.

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.

Membership Subscription Fees for Legal Support Services Subject to Texas Sales Tax

Membership subscription fees for legal support services were subject to Texas sales and use tax since the seller included them in a lump-sum fee which included payment for the license of document drafting software.

Plasma Screening Equipment Not Eligible for Texas Manufacturing Exemption

A laboratory’s purchases of equipment and supplies to screen and test plasma for its clients did not qualify for Texas’s manufacturing exemption for sales and use tax.