TEXAS SALES TAX 101: What Is Taxable?

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1448Texas sales taxes must be charged if you 1) sell tangible personal property in Texas, 2) lease tangible personal property in Texas, or 3) sell taxable services in Texas.

Tangible personal property is defined as items that can be seen, measure, felt, or touched.

Services are exempt unless listed as a taxable service. The list is always changing, so you should check the Texas State website (http://www.window.state.tx.us/taxinfo/sales/). The following is a list of the main taxable services:

  • Amusement services
  • Cable television services
  • Personal services
  • Motor vehicle parking & storage
  • Repairs to tangible personal property
  • Telecommunication services
  • Credit reporting services
  • Debt collection services
  • Insurance services
  • Information services
  • Real property services
  • Data processing services
  • Security services
  • Real property repair and remodeling
  • Telephone answering services
  • Internet access services

If you’re not sure you fall into one of these areas, you should call your local Texas State sales tax office or your CPA in order to ensure that you are charging sales tax correctly.

Like any good CPA, I need to add a disclaimer: Unfortunately, it is impossible to offer comprehensive tax info over the internet, no matter how well researched or written. And remember, I love my readers but having me bookmarked on your computer doesn’t make you a client: before relying on any information given on this site, contact a tax professional to discuss your particular situation.