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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 Clarifies Collection of Local Taxes on Drop-Shipped Goods

An Austin, Texas based company was required to collect and remit Austin sales tax on an order that that was drop shipped by an out of state vendor directly to a Texas customer. The company was not required to collect…

Texas Taxes Purchase of Hotel In-Room Amenities

The Texas Department of Revenue has issued a decision regarding the purchase of in-room amenities by hotels. A group of Texas hotels protested an audit that found that amenities such as soap, shampoo and notepads were subject to sales tax…

Annual Tax Holiday Gives Texas Shoppers a Break

Texas has announced the dates of its annual sales tax holiday: August 3-6, 2007. During this period, the state will exempt shoppers from paying state and local sales taxes on most clothing and footwear priced under $100. Items such as…

Excess Hotel Internet Access Services Taxable in Texas

In response to a taxpayer\’s question, the Texas Comptroller ruled that a hotel\’s charges for internet access services were taxable if they exceeded $25 per month.

Subcontractor Must Present Exemption Certificate at Time of Sale in Texas

A subcontractor building a sanctuary for a church was ordered to pay sales tax on items purchased from a supplier. The subcontractor, although claiming to have informed the supplier of the tax-exempt status of the project, did not provide the…

Texas Letter Clarifies Taxability of Bookkeeping Services

The Texas Comptroller clarified the tax treatment of bookkeeping services. In the clarification, the Comptroller stated that 80% of the charge for data processing services was taxable. However, the law specifically excludes services where the computer is used “to facilitate…

Texas Issues Lease Assignment Ruling

In a recent decision, the state ruled that a business which leased equipment and later assigned its rights to the leases to third parties was responsible for all sales tax due on the leases, even if the leases were assigned…

Certain Printed Materials Exempt In Texas

In a recent hearing, a computer hardware/software manufacturer was exempt from Texas sales and use tax on certain printed material it purchased from vendors and included with its products to customers.

Catalogs Stored Or Delivered In Texas Taxable

In a May 2006 Comptroller of Public Accounts Letter, the State explained that any taxpayer which pays an out-of-state company to produce and mail catalogs is liable for Texas use tax on any catalogs shipped directly to Texas residents. Furthermore,…

Texas Software Installation Subject to Tax

A manufacturer was subject to Texas sales and use taxes on software installation charges. The fees, charged by a software vendor for installing the software on the taxpayer’s server in Texas, were taxable as part of the sales price of…

Parent Company Purchase of Software License Taxable in Texas

A parent company’s claim for a partial refund of Texas use tax paid on software was rejected. The taxpayer requested a refund of two-thirds of the tax paid on the total charge for three sets of software licenses because two…

Texas Declares Short-Term Rental Equipment Is Taxable

A taxpayer’s rental of gas compressor equipment (previously tax exempt when rented under a one-year contract) became taxable when the initial contract ended and the taxpayer was allowed to retain and rent the equipment on a month-to-month basis. The State…

Permit and Other New Requirements for Out-of-State Wine Shipments.

Deliveries of wine to Texas consumers require out-of-state wineries to carry appropriate sales tax permits and a direct shipper permit. The qualifying carrier must label the shipped package to show that it contains wine and its intended recipient. Permit holders…

Texas sales tax holiday: Aug. 5 – Aug. 7, 2005

Clothing and footwear under $100. Excludes accessories and protective clothing. See Details

Texas requires predominant use study for exemption.

The Texas Comptroller of Public Accounts discussed the applicability of the Texas exemption of sales and use tax on gas and electricity used for commercial purposes. The utility exemption can only be claimed after the taxpayer completes a predominant use…

Texas Tax Preempted by Federal Law, Court Rules.

The U.S. Court of Appeals held that a federal law preempted the assessment by the Texas Public Utility Commission. The FCC was authorized to impose a fee on interstate service providers to fund federal programs and states were authorized to…

Texas affirms taxability of out-of-state printing of advertising materials.

In a case issued on July 15, 2004, May Department Stores Co. was found liable for Texas use tax for the store’s use of advertising materials printed outside of the state. On August 26, 2004, a new opinion was substituted…

Texas determines company is responsible for taxes, not independent dealers.

Texas Court of Appeals recently upheld a decision that Alpine Industries, Inc. was a direct sales organization and was responsible for collecting and remitting sales and use tax instead of its independent dealers. Under Texas law the Comptroller can treat…

Texas taxes out-of-state printing of ad materials.

The printing of out-of-state advertising materials are subject to Texas use tax. In a recent court case, materials used for advertising a Texas department store were printed outside of the state, but mailed to prospective customers in Texas. The department…

In Texas a company can create nexus through contract sales people.

In a recent hearing involving a debt collection company Texas upheld that a company can create nexus through contract sales people soliciting business in the state. Furthermore, it was ruled that sales made by these contract sales people qualified the…

Texas to hold annual sales tax holiday.

Clothing and footwear under $100 will be exempt from sales tax in Texas from August 6-8, 2004. Consumers may also use lay-away plans to take advantage for the tax holiday. Accessories and items intended strictly for athletic use will not…

Texas contractor responsible for taxes.

In Texas, it was found under audit that a lump-sum contractor owed sales tax on purchases it made to complete a contract to install a heating and cooling system for an exempt utility. The lump-sum contractor asserted that is relied…

Texas exempts sales calls as advertising services.

A Texas company used a toll-free national telephone number for advertising purposes when selling its customers’ motor vehicle parts. The solicitations were not taxable as data processing services, but remained exempt as advertising services. The state argued that the company…

Texas Motor Vehicle Parking and Storage Services Taxable.

In Texas, charges to store empty boat trailers, golf trailers, and motorcycle trailers, as well as mobile barbeque pits, are subject to sales tax as the provision of motor vehicle parking and storage. However, a charge to store an actual…