taxes

Sales and Use Tax

Texas imposes a 6.25 percent state sales and use tax on all retail sales, leases and rentals of most goods, as well as taxable services. Local taxing jurisdictions (cities, counties, special purpose districts and transit authorities) can also impose up to 2 percent sales and use tax for a maximum combined rate of 8.25 percent.

Registering and Reporting Texas Sales and Use Tax

Local Sales and Use Tax Rates

Due Dates

Taxpayers will be notified by letter after their application for a sales tax permit has been approved whether they will file monthly or quarterly. If a due date falls on a Saturday, Sunday or legal holiday, the next working day is the due date.

Quarterly Filers

For quarterly filers, reports are due on:

  • April 20 to report Jan. – March
  • July 20 to report April – June
  • Oct. 20 to report July – Sept.
  • Jan. 20 to report Oct. – Dec.
Monthly Filers

For monthly filers, reports are due on the 20th of the month following the reporting month. For example, the April sales tax report is due May 20.

Yearly Filers

For yearly filers, reports of sales for the previous year are due on Jan. 20.

Payments via TEXNET

Taxpayers required to pay electronically via TEXNET must initiate their payment by 6 p.m. CST on the last banking business day prior to the due date in order for the payment to be considered timely.

Taxpayers will be notified by letter when their business meets the threshold to be required to pay electronically via TEXNET.

Discounts, Penalties, Interest and Refunds

Discounts
  • Permitted sales taxpayers can claim a discount of 0.5 percent of the amount of tax timely reported and paid.
  • Sales taxpayers who prepay can claim 0.5 percent for timely filing and paying, plus 1.25 percent for prepaying.
Penalties
  • A $50 penalty is assessed on each report filed after the due date.
  • If tax is paid 1-30 days after the due date, a 5 percent penalty is assessed.
  • If tax is paid over 30 days after the due date, a 10 percent penalty is assessed.
Interest

Refunds

Additional Resources

Use Tax