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Texas Sales Tax: Rates, Nexus, Exemptions, and Filing Requirements Explained

  • Texas has a statewide sales and use tax rate of 6.25%, with local jurisdictions able to add up to 2% more.
  • Sales tax applies to tangible personal property and certain services; sellers must collect and remit tax if they have physical or economic nexus (over $500,000 in Texas sales).
  • Exemptions include prescription drugs, most food, newspapers, agricultural products, manufacturing equipment, and sales to certain nonprofits, schools, and government entities.
  • Businesses must register to collect sales tax and can claim exemptions using Form 01-339.
  • Filing and remittance can be done electronically or by paper; large taxpayers must pay electronically.

Source: sovos.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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