Texas sales tax for contractors

State sales tax rate

6.25% state; locals up to 2% (max 8.25%); no scheduled change seen

Source: https://comptroller.texas.gov/taxes/sales/. Last verified 2026-11-02.

How contractors are taxed

lump-sum contract = contractor is consumer, pays tax on materials, charges none; separated contract = contractor gives resale cert for materials, charges customer tax on materials (labor not taxed); nonresidential: total charge incl. labor taxable for repair/remodel

Source: https://comptroller.texas.gov/taxes/publications/94-116.php. Last verified 2026-11-02.

Certificates and forms

01-339 Texas Sales and Use Tax Resale Certificate / Exemption Certification; also 01-909, 01-919, 01-374, 01-931, 01-929; exemption certs for exempt-org contracts; no capital-improvement certificate

Source: https://comptroller.texas.gov/taxes/sales/forms/. Last verified 2026-11-02.

New-employer unemployment tax

2026 new employer 2.7% (or NAICS industry average if higher); taxable wage base $9,000 (page undated); 2027 not published

Source: https://www.twc.texas.gov/programs/unemployment-tax/new-texas-employer-information. Last verified 2026-11-02.

What this page does not cover

Local taxes, special districts, and any detail we could not confirm on an official page are left out on purpose. Confirm current rates, forms and due dates with the state agency and your CPA.

How BossHours helps

BossHours keeps your quotes, invoices and job records in one place so your accountant has what they need at filing time. It does not give tax or legal advice.