Texas Sales & Use Tax

Texas levies a 6.25% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes up to 2%. The range of total sales tax rates within the state of Texas is between 6.25% and 8.25%.

Use tax (same rate) is also collected on the consumption, use or storage of goods in Texas if sales tax was not paid at the time of the purchase. There are certain exemptions and exclusions from the sales and use tax, such as groceries, prescription drugs, and certain medical devices. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. 

Texas provides exemption opportunities for the following industries: 

  • Manufacturing
  • Pharmaceutical/Biotech
  • Restaurants
  • Hospitals
  • Oil/Gas/Energy

Statute for Refunds: 48 Months

Utility Exemption: Yes, predominant use (over 50%); Study is required.

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