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Tag: Texas sales tax
Texas Sales Tax: What’s Taxable and What’s Not
Texas Sales Tax Texas relies heavily on sales and use tax to fund schools, infrastructure, and public services, making it one of the state’s primary revenue sources. For 2025, the Texas state sales tax rate remains 6.25%, with local jurisdictions cities, counties, and transit authorities allowed to add up to 2%, creating a maximum combined […]
Are Groceries and Essentials Taxable in Texas?
Groceries and Essentials Taxable Texas residents pay sales tax on most retail purchases, but groceries and essential household items are treated differently under state tax laws. While Texas does impose a statewide sales tax rate of 6.25%, many basic food items are exempt when purchased for home consumption. Understanding which products are taxable and which […]
Why Texas Has No State Income Tax & How It Benefits You
Texas Has No State Income Tax Texas has no state personal income tax. That means individuals who live and earn income in Texas do not pay a state tax on wages, salaries, retirement distributions or investment income. This feature makes Texas unique among states and carries benefits and trade-offs for residents. Legal Basis: Why Texas […]
Sales Tax on AI Model “Inference-as-a-Service”
Introduction Texas businesses offering AI model inference-as-a-service (IaaS), where users access pre-trained models for predictions via API, must determine sales tax applicability to avoid compliance risks and penalties. Inexperienced advisors may misclassify these services, leading to undercollection or overpayment, impacting profitability. Are you correctly applying Texas sales tax to your AI inference services in 2025? […]
Sales Tax Holidays: Do SaaS Bundles Qualify?
Introduction Sales-tax holidays are well-known in Texas—back-to-school weekends and energy-efficient product promos—but what about SaaS products bundled with hardware or services? Can software startups benefit in 2025? This blog explores whether SaaS bundles qualify for sales-tax holiday exemptions, the interpretation of bundled transactions, and what Texas sellers must do to comply. Texas Code References Texas […]
Texas Franchise Tax vs Sales Tax: Which One Hits You First?
Starting a business in Texas? You’ll likely face two major state-level taxes: the Franchise Tax and the Sales and Use Tax. But which one applies first? Which one costs more? This guide will break down how each tax works, when it kicks in, and what startups, e-commerce sellers, and service providers need to prioritize in […]
Tax-Free Weekend in Texas: What Can You Buy Without Paying Sales Tax?
Introduction Every year, Texas offers a Tax-Free Weekend, allowing shoppers to purchase certain items without paying state and local sales tax. This event helps families, students, and businesses save money on essential purchases. This guide explains which items qualify, key dates, spending limits, and strategies to maximize savings. What Is Texas Tax-Free Weekend? Texas Tax-Free […]
How to File Your Texas Sales Tax Return Online (Step-by-Step Guide)
Introduction Businesses in Texas that sell taxable goods or services must collect and remit sales tax to the state. The Texas Comptroller’s Office requires businesses to file sales tax returns either monthly, quarterly, or annually, depending on revenue. Filing your Texas sales tax return online is the fastest and most efficient method to stay compliant […]
Texas Sales Tax vs. Property Tax: Which One Affects You More?
Introduction Texas is known for its low-tax environment, but residents and businesses still pay sales tax and property tax, which significantly impact their finances. While Texas has no state income tax, property and sales taxes can be higher than in other states. This guide compares Texas sales tax vs. property tax, helping individuals and business […]