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Collecting Sales Tax in Texas – A Guide For Sellers

Do you sell goods in Texas? Our Comptroller’s office has updated the guidelines for collecting local sales and use tax.

The guide has been updated with current information and can be reviewed online here: http://comptroller.texas.gov/taxinfo/taxpubs/tx94_105.pdf

Overview:

When you sell taxable goods or services in Texas, you must collect the 6.25 percent state sales or use tax and the appropriate local sales or use tax. In general, local sales tax is based on the location of the seller’s place of business.

Local use tax is based on the location where the customer receives the item. If you ship or deliver goods to your customers, you may have to collect local sales tax, local use tax or both. The local tax due cannot be more than 2 percent, so the most tax you can collect is 8.25 percent. 

In-Store Sales: When a customer buys something in a store and leaves with it – for example, when a customer buys candy at a grocery store – that is an in-store sale. If you make in-store sales, you must:

  • collect local sales tax based on your store’s location; and
  • collect the 6.25 percent state sales tax in addition to the local sales tax. You do not have to collect any local use tax.

LocalSalesTax_Guide

 
 
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