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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.

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Leased Realty Improvements Were for Benefit of Exempt Entity in Texas

A build-to-suit lease between an exempt nonprofit entity and a nonexempt landlord qualified as an exempt contract from Texas sales tax. More…

Out-of-State Software Vendor’s Sales Create Nexus in Texas

Licensed software and digital content sales to Texas users by a Utah company through the Internet established substantial nexus. More…

Texas Discusses Taxability of Software Advertising Plug-In Transactions

The owner of a software product was liable for Texas sales tax on payments received from companies for items the taxpayer claimed were nontaxable advertising services.

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.

Deliveries in Texas by Out-of-State Retailer Establish Nexus

A Louisiana retailer that did not have any locations in Texas established nexus in the state by delivering furniture in company trucks to Texas residents.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

Texas Lessor Liable for Accelerated Taxes When It Assigned Lease

A taxpayer that entered into operating leases for equipment located in Texas and then assigned its right to receive lease payments to third parties was properly assessed Texas sales tax because it failed to accelerate, collect, and report the sales…

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

Texas Enacts Data Center Exemption for Certain Property

Texas has enacted a temporary sales and use tax exemption for certain tangible personal property used in data centers that meet certain capital investment and new employment requirements. A qualifying data center is one that is a single qualifying applicant…

Sign Manufacturer Treated as Contractor on Installed Signs in Texas

A taxpayer that manufactured signs was held to be a contractor for Texas sales tax purposes and as a result, was not eligible to claim a manufacturing exemption on its purchase of utilities, equipment, and materials used in manufacturing the…

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

Amazon Enters Agreement to Collect Sales Tax in Texas

Amazon has entered into an agreement with the state of Texas to begin collecting and remitting Texas sales tax on July 1, 2012. Under the agreement, Amazon plans over the next four years to create at least 2,500 jobs and…

Texas Power Plant’s Purchase of Equipment Not Sales Tax Exempt

A Texas power plant operator’s purchases of turbines, generators, and accessories used to generate electricity did not qualify for the manufacturing exemption from sales and use tax because the operator was unable to prove that the machinery retained its identity…

Texas Enacts Affiliate Nexus Bill

Effective January 1, 2012, the definition of a retailer considered to be engaged in business in Texas for use tax collection purposes is expanded.

Texas Announces Fresh Start Tax Amnesty Program

The Texas Comptroller of Public Accounts has enacted the Fresh Start tax amnesty program, which will run from June 12, 2012 through August 17, 2012. During the amnesty period, penalties and interest will be waived for businesses that file delinquent…

Daily Deals Treated as Gift Certificates in Texas

Daily deals offered through third parties, such as radio stations and social media networks, are treated as gift certificates for sales tax purposes.

Texas Waste Hauler’s Services for Contractors Taxable

A Texas waste hauler that provides waste removal services for roofing contractors was denied a requested sales tax exemption based on receiving sale for resale certificates from the contractors. Texas law prohibits a contractor who performs a separated contract from…

Texas Announces Annual Sales Tax Holiday

The Texas Comptroller of Public Accounts has announced that its annual sales tax holiday will take place on August 19-21, 2011. During the tax holiday, most clothing and footwear priced under $100 are exempt from sales and use tax. In…

Divergent Use of Manufacturing Equipment in Texas Discussed.

If a manufacturer uses tax exempt manufacturing equipment to make repairs on a product under the terms of its warranty…

Roaming Charges for Wireless Calls Made in Mexico Not Subject to Texas Sales Tax.

A telecommunications services provider’s roaming charges for when its Texas customers traveled to Mexico and placed or received calls that originated and terminated in Mexico, were not subject to Texas sales tax. The Mobile Telecommunications Sourcing Act (MTSA) provides a…

Texas Discusses Energy Star Sales Tax Holiday

The Texas Comptroller of Public Accounts issued a newsletter that discusses, among other things, the annual Memorial Day weekend Energy Star Sales Tax Holiday. The 2010 Holiday will begin at 12:01 a.m. on Saturday, May 29, and end at 11:59…

Texas Exempts Aircraft if Used for Agricultural Services

Effective September 1, 2009, Texas legislation exempts aircraft from Texas sales and use tax if sold to a person for use exclusively in connection with an agricultural use. To qualify for the exemption the aircraft must be used 95% of…