Standard rate
The standard sales tax rate in Texas for 2024 is 6.25%.
Who is obliged to register sales tax in Texas
Complete the application for registration
- You have a business in Texas;
- You sell or rent movable property in Texas;
- You provide taxable services in the state of Texas.
Threshold
$500,000
Marketplace thresholds by state
The special rules are applicable to the SAAS business.
Software as Service Tax Thresholds by state.
Marketplace
Marketplace facilitators engaged in business in Texas must collect, report, and remit sales and use tax on all sales made through a marketplace. Marketplace providers are required to note to marketplace dealers that they will collect sales and use tax on their behalf.
Registration procedure
Remote sellers can Apply for a Permit via eSystems on the website Texas Tax Department.
To fill out the application, remote sellers will need the following documentation:
- Nine-digit Social Security number (SSN) of the company owner;
- Partnership Social Security numbers/federal employer’s identification numbers for every partner;
- Texas corporation’s file number was Issued by the Texas Secretary of State;
- Social Security number for each general manager or director of a company;
- NAICS – North American Industrial Classification System code required for all businesses.
If you do not have any of these documents, then you must register using the pdf form.
Sales tax payment and filing date
You can check the tax payment deadline on the website.
Penalty and interest
- Each tax return filed after the due date is subject to a $50 fine;
- If the tax is paid no later than 30 days after the due date, a penalty of 5% will be charged;
- A 10% penalty will be charged if the tax is paid more than 30 days after the due date.
Discount
- Registered sales taxpayers can claim a discount of 0.5% of the amount of tax timely reported and paid;
- Sales taxpayers who prepay can claim 0.5% for timely filing and paying, plus 1.25% for prepaying.
Texas Sales Tax Holiday
Dates:
April 27-29, 2024
August 9-11, 2024
Eligible Items:
April Sales Tax Holiday:
- Generators: Emergency preparation supplies like portable generators and other storm devices priced at $3,000 or less are exempt from sales tax.
- Emergency preparation supplies: Certain emergency preparation supplies priced at $300 or less are exempt. This includes items such as batteries, weather radios, and emergency kits.
August Sales Tax Holiday:
- Clothing and footwear: Items priced at $100 or less per article are exempt from sales tax.
- School supplies: Items priced at $100 or less per article are exempt from sales tax.
- Computers and tablets: Devices priced at $1,000 or less each are exempt from sales tax.
These sales tax holidays are designed to coincide with specific times of the year when Texans typically prepare for emergencies and back-to-school. It’s a great opportunity for residents to save money on essential items.