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Texas Consumer Tax Laws

Most states, including Texas, collect taxes on the retail sales of consumer goods. In addition, these states often assess a higher tax rate for cigarettes, liquor, alcoholic beverages, gasoline, and other such items considered non-essential but which come with a cost to the public (such as lung cancer and pollution from cars).

The following table lists the current consumer tax rates in Texas. See FindLaw's Tax Law section and the links at the end of this article for additional articles and resources.

Tax

Rate

Code Section

Sales Tax

6.25%

Retail sales, leases and rentals of most goods, and taxable services are subject to the sales tax. Taxable services include the following:

  • Admissions to amusement services (includes live concerts, movie theaters, sporting events, and exhibitions and shows)
  • Credit reporting services (if the address of the credit applicant is in Texas and the person asking for the report is located in Texas or doing business in Texas);
  • Data processing services;
  • Cable and satellite services (excluding services provided directly to consumer homes);
  • Debt collection services;
  • Information services (newsletters, subscriptions to databases, mailing lists, etc.);
  • Insurance services;
  • Internet access services;
  • Motor vehicle parking and storage services;
  • Nonresidential repair, remodeling, and restoration service;
  • Real property services;
  • Personal property repair, remodeling, and restoration services;
  • Personal services (carpet cleaning, massages, dry cleaning, etc.);
  • Telecommunications services;
  • Telephone answering services;
  • Utility transmission and distribution services; and
  • Services from taxable labor (photographers, tailors, artists, etc.).

Cities, counties, special purpose districts, and transit authorities may charge an additional local tax. The combined state and local tax cannot exceed 8.25%.

Tax Code Section 151.051

Cigarette Tax

$1.41 per pack of twenty cigarettes

Tax Code Section 154.021.

Gasoline Tax

20 cents per gallon of gas

Tax Code Section 153.102.

Use Tax

6.25%

Tax Code Section 151.101.

Liquor Tax

Alcohol beverages are taxed at the following rates:

  • 20 cents per gallon of beer;
  • 7.08% for wine;
  • $2.40 per gallon of spirits; and
  • 8.25% for mixed drinks.

Alcohol and Beverage Code section 201.01.

Gambling Tax

3% of facility rental and 3% of prizes.

Occupations Code sections 2001.501 and 2001.502.

If you have additional questions about your tax obligations, you may want to contact a Texas tax law attorney for legal advice specific to your situation.

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