Minimum Sales Rate Tax for 2024
| 6.25% | Column content | Column content | Column content | Column content | |
| 1% | Column content | Column content | Column content | Column content | |
| 0% | Column content | Column content | Column content | Column content | |
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| Rtd Greater Denver | Column content | Column content | Column content | Column content | |
| Scientific & Cultural Fac.(cd) | Column content | Column content | Column content | Column content | |
| Regional Transport Authority | Column content | Column content | Column content | Column content | |
| Minimum combined sales tax rate value | 8.25% | Column content | Column content | Column content | Column content |
| Special tax | Column content | Column content | Column content | Column content | |
| Economic sales nexus threshold | $500,000 | Column content | Column content | Column content | Column content |
| Transactions threshold | N/A | Column content | Column content | Column content | Column content |
| Sales tax return filing due date | Last day of the month following the reporting period | Column content | Column content | Column content | Column content |
The base state sales tax rate in Texas is 6.25%, but since the city-specific tax rate is 1%, the Dallas County tax rate is 0% and the Dallas Area Rapid Transport tax is 1%, the minimum sales tax rate for Dallas is 8.25%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Looking for help calculating your sales tax? Contact us today to book a free consultation!
What is nexus?
In Dallas, businesses must understand “nexus” to determine their tax obligations. Nexus refers to the connection that requires a business to collect sales tax in a state. This concept became even more important after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., which allowed states to require sales tax collection based on economic activity rather than just a physical presence.
Specific sales tax rules for Dallas
Any company or individual that owns, operates, manages, or controls a hotel in the city is required to register the hotel, collect the hotel occupancy tax (HOT), and remit it to the city. This obligation also applies to short-term rentals (STRs), which refer to properties rented for 30 days or less. The HOT rate in the city is 13% of the room rate. Additionally, groceries are exempt from sales tax in Dallas.
Services
Some services are subject to sales tax and some are aren’t
Goods
Most items, such as appliances, vehicles, furniture, sporting goods, and electronics, are taxable
Clothing
Subject to sales tax
Electronics
Taxable
SaaS
Subject to sales tax
Digital Products
Subject to sales tax
Software
Pre-packaged software is taxable, custom software may be exempt.
Freight/Shipping
Subject to sales tax when included with the sale of taxable items.
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