This blog was last updated on November 18, 2025
Texas Sales Tax Rate
Texas imposes a statewide sales and use tax rate of 6.25%. The state does allow local jurisdictions to levy additional sales taxes. Combined local tax cannot exceed 2%. Specific requirements (explained in TX Publication 94-105) apply to the collection of local sales and use taxes.
What’s Taxable in Texas?
Texas sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.
Examples of taxable items and services include:
- Clothing
- Prewritten computer software
- Books and magazines
- Telecommunication services
- Data processing and information services
- Amusement and entertainment services
Sales Tax Nexus in Texas
A seller is liable to collect and remit Texas state sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
TX: Physical Nexus
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Texas.
TX: Economic Nexus
Texas enforces economic nexus for remote sellers. If your business has:
- Over $500,000 in sales in Texas during the previous calendar year,
Then you are required to register for and collect Texas sales tax.
Learn more on the Texas Comptroller’s Remote Sellers page.
How to Register for a Texas Sales Tax License
Businesses or individuals selling tangible personal property to Texas consumers must register to collect sales tax. Registration can be completed through the Texas Online Tax Registration Application.
TX Sales Tax Exemptions
Certain sales in Texas are considered generally exempt from the sales/use tax requirements.
Exempt Products and Services
- Prescription drugs and medical devices
- Most services (unless Texas statutes specify otherwise)
- Food and food ingredients
- Newspapers
- Agricultural products and supplies
- Manufacturing equipment
Entity-Based Exemptions
Additionally, Texas exempts sales to certain entities from the sales/use tax, including the following:
- Certain qualified nonprofit entities
- 501(c)(3) and 501(c)(4) organizations
- Churches and houses of religious worship
- Nonprofit schools, hospitals and homes for children and aged persons
- Retailers selling for resale
- Schools
- Government
How to Claim Sales Tax Exemption in Texas
To claim an exemption, an entity must provide an exemption certificate with the sale. The Comptroller accepts Form 01-339 as the most commonly used form.
Additional guidance on acceptable exemption formats can be found on the Texas Comptroller’s Application for Tax Exemption Page.
TX Filing and Remittance Requirements
Texas offers multiple methods for filing and remitting sales and use tax:
- E-filing through webfile
- Paper filing:
- 01-114
- 01-117, short form
- 01-156 (use tax)
Taxpayers who have paid $50,000 or more in sales/use tax the preceding fiscal year are required to pay their taxes electronically. Taxpayers who paid $500,000 or more for any specific tax are required to transmit using TEXNET.
Frequently Asked Questions
Are online sales taxed in Texas?
Yes. Any online retailer that with physical or economic nexus must collect taxes on their online sales.
What is the Texas sales tax holiday?
Every year Texas holds 3 sales tax holidays as follows:
- Emergency Preparedness
- Timing: The Saturday before the last Monday in April through the last Monday in April.
- Inclusions: The holiday will apply to all state and local sales tax when the cost per certain qualifying items is less than $75. Additionally, certain items are eligible for the holiday when they exceed $75; storm protection devices and emergency or rescue ladders will be exempt provided the selling price is less than $300, and portable generators will be exempt provided the selling price is less than $3,000. A list of exempt items can be found here.
- Energy Star and Water-Efficient Products
- Timing: The Saturday preceding the last Monday in May (Memorial Day) through the last Monday in May.
- Inclusions: A list of exempt items can be found here.
- Back to School
- Timing: Beginning on the Friday before the 15th day preceding the beginning of the school year (as prescribed by law) through the following Sunday.
- Inclusions: Clothing and footwear (sold for less than $100); face masks; backpacks (sold for less than $100); school supplies (sold for less than $100). A list of exempt items can be found here.
Is shipping and handling taxable in Texas?
Yes. In Texas shipping and handling charges are part of the “sales price” of an item or taxable service for which there is no deduction. The sales tax applies to all transportation or delivery charges to a customer when a taxable item is sold, leased or rented and the delivery charges are billed by the seller or lessor to the buyer or lessee. Transportation and delivery charges both before and after the sale are taxable even if separately stated from the sales price of a taxable item. However, it is important to not the converse is also true and that shipping and handling charges are exempt for goods that are not taxable.
Additional Resources
For more information on U.S. sales tax compliance across all 50 states, check out our:
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