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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 25-27, 2026

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 23-25, 2026

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 23-25, 2026

  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 7-9, 2026

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

Beginning with 2026’s Back to School Holiday, the holiday will take place beginning on the first Friday in August until the following Sunday (S.B. 1415).
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.

Texas Provides Online Sales Tax Rate Locator

The Texas Comptroller has provided a new Web tool which displays the correct sales tax rate in effect for most business addresses in Texas. This Sales Tax Rate Locator is designed to help consumers and businesses understand which of the…

Ship Unloaders on Rails Denied Rolling Stock Exemption in Texas

A taxpayer’s purchase of parts for its ship unloaders that operated on rails did not qualify for the Texas rolling stock exemption from sales and use tax. The taxpayer, an aluminum oxide manufacturer, used the equipment to unload materials from…

Texas Updates Mixed Beverage Gross Receipts Tax Regulation

Texas has updated its mixed beverage gross receipts tax regulation. The updates further explain the taxability of cover charges, door charges, entry fees, admission fees, and gratuities. Several definitions have been amended and/or added. All mandatory gratuities that exceed 20%…

Data Processing Services Related to Insurance Claims Taxable in Texas

A taxpayer, who is a nationwide insurance provider, was denied a refund of taxes paid for data processing services.

Texas Taxability of Antibacterial Soap and Cleaning Products Discussed

Texas offers a sales and use tax exemption for over-the-counter drugs and medicines that are required to be labeled with a “Drug Facts” panel in accordance with FDA regulations. In order to qualify, these items must fit the following definition…

Security Services are Taxable in Texas

A taxpayers” claim for a refund of tax assessed on security services performed by off-duty peace officers was denied. A licensed security services contractor charged the taxpayer a separately-stated per hour fee for each officer, scheduling, and payroll. The taxpayer…

Offshore Oil and Gas Exploration Equipment Exempt from Sales and Use Tax in Texas

In a recent Letter Ruling, the Texas Comptroller of Public Accounts stated that the purchase of materials by an offshore geological surveying company used to assemble seismic nodes qualify for the exemption from sales and use tax for tangible personal…

Wrapping and Packaging Goods Not Tax Exempt for Retailers in Texas

Retailers are not tax exempt when purchasing point of sale wrapping and packaging goods from manufacturers. Since the manufacturing process is complete when items are packaged or wrapped up for the purpose of selling those items, the retailer cannot be…

Texas Apartment Complex Common Area Repairs Analyzed

In a recent letter ruling, it was explained that contract labor charges for repairs, maintenance, and remodeling of apartment complex common areas are not subject to sales and use taxes, however, materials used on the projects are taxable. The contractor…

Clean Energy Project Electricity Exempt in Texas

Texas Governor, Rick Perry, signed into law H.B. 3732, making the sale of electricity generated by an advanced clean energy project exempt for the Texas public utility gross receipts tax.

Texas Letter Addresses Landman Services

In a letter release, the Texas Comptroller of Public Accounts addressed the taxability of landman services. Landman services are considered to be “services necessary to negotiate or secure land and or mineral rights for acquisition or trade.” This includes acquiring…

Texas Clarifies Tax Treatment of Gratuity Charges

The Texas Comptroller of Public Accounts has amended the State’s regulation on the taxation of gratuities. Reasonable mandatory gratuities are not subject to tax as long as they are separated from the price of the meal, identified as a tip…

Texas Proposed Lease of Aircraft Subject to Tax

An aircraft owner’s proposed agreement to lease its aircraft to an air carrier to provide flight services to the owner and third parties was not exempt as an operating lease by the Texas Comptroller of Public Accounts. The agreement does…

Licensing of Software Source Codes and Specifications Exempt in Texas

In a decision hearing, the Texas Comptroller of Public Accounts found that charges for a license or software specifications to a customer in Nebraska were not subject to tax. A Texas transaction processing company shipped a CD containing electronic communication…

Texas Laws Change Sourcing Provisions for Collection and Reporting of Tax

Texas House Bill 142, effective September 1, 2007, requires sellers to collect transit taxes based on the location of the seller. Previously, transit taxes were collected on items delivered within a transit authority, but not collected on items delivered outside…

Texas Free Meals and Gift Cards to Employees Discussed

Meals and beverages provided to employees by employers for free of charge would be taxable to the extent that tax was due on the original purchase price of the food and drinks. Gift cards are not taxable “since it is…

Texas Taxability for Motor Vehicle Repair Services

The Texas Comptroller of Public Accounts explains the sales tax treatment of repair services performed on motor vehicle component parts. When a repair person repairs or rebuilds component parts that a customer places in inventory or installs on a vehicle…

Texas Sales Tax Holiday Period Changed to August 17-19

Texas Comptroller announced that recently passed legislation has changed the dates for the annual three-day Texas sales tax holiday on clothing and footwear to begin on the third Friday in August; thus it will now occur on August 17-19, 2007,…

Attendance of Texas Trade Show Establishes Nexus for Use Tax

By attending trade shows in Texas to introduce and demonstrate dental equipment for the purpose of selling them in Texas, an out-of-state seller had the required physical presence in Texas to establish substantial nexus with the state. As a result,…

Amnesty Program Announced in Texas

From June 15 to August 15, 2007, the Texas Comptroller is offering a waiver of penalties and interest for taxpayers who underreported or are not yet permitted for tax. All state taxes administered by the Comptroller are eligible for amnesty,…

Texas Internet Job Web Site Services Deemed Taxable

A taxpayer that provided an Internet employment website on which employers could post a company profile and job openings was deemed to be providing taxable data processing services. A Texas Decision Hearing provided that the services were taxable when it…

Texas Rules Equipment Repairs Taxable

Repairs performed on certain machinery at a concrete manufacturer’s plant did not qualify for an exemption from Texas sales and use tax. Since the machinery was incorporated into the structure of the plant, it qualified as an improvement to real…

Storage Tank Roof Not Eligible for Manufacturing Exemption in Texas

A taxpayer’s installation of a floating roof over a storage tank was not eligible for an exemption as equipment used in the manufacturing process. It was determined that the tank in question was used primarily for storage and the taxpayer…

Internet Job Web Site Services Taxable in Texas

The Texas Comptroller has issued a decision in regards to the taxability of internet job web site services.