Texas — Taxable Services

SALT Report 3383 – Texas imposes a state sales tax on retail sales, leases and rental of most goods, as well as taxable services.   You may be required to collect sales tax if you operate a service business in Texas.   Currently, there are 17 general categories of taxable services included in Texas Tax Code, Section 151.0101. Texas Publication 96-259, provides examples of services that are taxable and references to additional information.

The following is a partial list of taxable services.

  • Credit Reporting services that create and deliver a credit report for a fee or other consideration in Texas.
  • Data Processing Services that uses a computer for word processing, data entry, compilation, storage or manipulation.  These include check preparation, accounts payable or receivable preparation, software as a service (SAAS) and application service provider (ASP).
  • Internet Access Services that enables users to connect to the internet to access content, information, electronic mail or other services offered over the internet.

For Further Information:

Texas Tax Code – Section 151.0101 “Taxable Services”

Texas Publication 96-259 Taxable Services