Texas sales tax codes and rates
Texas's state sales tax rate is 6.25%; county and city rates come on top and are not included. A Nefin company that sells into Texas gets 2 sales codes, each named after the line of the 01-114 it fills, so the return's figures add up as you invoice. Purchases you owe use tax on go under TX-3, and Nefin works out the use tax due.
Texas codes from the 01-114
Each code is “TX-” plus the line it fills on the 01-114. Rates are the state rate only; add local rates in Settings, VAT rates, where you collect them.
| Code | What it covers | Rate |
|---|---|---|
| TX-2 | TX taxable sales 6.25% (01-114 Item 2) | 6.25% |
| TX-1-NT | TX nontaxable sales: resale, interstate, exempt (01-114 Item 1 only) | 0% |
| Code | What it covers | Rate |
|---|---|---|
| TX-3 | TX taxable purchases, use tax (01-114 Item 3) | 0% |
Texas in the tax books
Nefin’s sales tax book has one row per invoice and one column per 01-114 line; these are the Texas columns and the totals worked out from them.
Sales Tax Book
Texas - 01-114
- [TX-2]Taxable sales (Item 2)
- [TX-1-NT]Nontaxable sales, in Item 1 only
Totals Nefin calculates
- [TX-1] Total Texas sales (Item 1)Sum of the net amounts in [TX-2] + [TX-1-NT]
- [TX-7a] State tax 6.25% on sales (Item 7a, local tax excluded)Net amount × 6.25%, from [TX-2]
Use Tax Book
Texas - 01-114
- [TX-3]Taxable purchases (Item 3)
Totals Nefin calculates
- [TX-7a] State tax 6.25% on purchases (part of Item 7a)Net amount × 6.25%, from [TX-3]
Frequently asked questions
What is the Texas sales tax rate?
The state rate is 6.25%. Counties, cities and districts may add local rates, which vary by address and are not part of these codes.
Which Texas sales tax codes does Nefin set up?
2 sales codes from the 01-114, for example TX-2 (TX taxable sales 6.25% (01-114 Item 2)), TX-1-NT (TX nontaxable sales: resale, interstate, exempt (01-114 Item 1 only)).
How does Nefin handle Texas use tax?
Book a purchase on which the vendor charged no Texas tax under TX-3 (TX taxable purchases, use tax (01-114 Item 3)). The bill stays at the price you paid, and the use tax book works out the tax you owe at 6.25%.
Are these Texas codes official?
They are a starting point. Each code follows a line of the 01-114, but check them against your return before you file, and edit them in Settings, VAT rates.