# Does Texas Have Sales Tax on Clothes: 2026 Guide for Businesses

Canonical: https://trykintsugi.com/blog/does-texas-have-sales-tax-on-clothes
Published: 2025-01-28

Texas does have sales tax on clothes: rules, rates, and key compliance steps for businesses operating in Texas. Full breakdown for finance teams.

## Does Texas Have Sales Tax on Clothes?

Yes, Texas applies sales tax to clothing, with state and local rates varying by location. To find the total for an address, use the [Texas sales tax calculator](/us-sales-tax-calculator/texas).

| Tax Type | Details |
|---|---|
| State Sales Tax | 6.25% on clothing purchases |
| Local Sales Tax | Up to 2%, making the maximum combined rate 8.25% |
| Total Tax Rate | Varies by city, ranging from 6.25% to 8.25% |
| Sales Tax Holiday (2026) | August 7 - 9, 2026: clothing and footwear priced under $100 per item are exempt from state and local sales tax |

For example, a $100 clothing purchase in Houston (8.25% rate) incurs $8.25 in tax.

| Location | Total Sales Tax Rate | Purchase Amount | Tax Charged |
|---|---|---|---|
| Houston | 8.25% | $100 | $8.25 |
| Dallas | 8.25% | $100 | $8.25 |
| Austin | 8.25% | $100 | $8.25 |
| San Antonio | 8.25% | $100 | $8.25 |
| El Paso | 8.25% | $100 | $8.25 |

### Notes

Clothing is taxable year-round except during Texas's annual sales tax holiday (August 7 - 9, 2026).

During the holiday, clothing and footwear priced under $100 per item are exempt from both state and local sales tax.

Local tax rates vary, increasing the total tax up to 8.25%.

Resale purchases are tax-exempt with a valid resale certificate.

Businesses must collect and remit tax to the Texas Comptroller of Public Accounts.

For more general information on Texas sales tax, visit Kintsugi's comprehensive guide: [Texas Sales Tax Guide 2026: A Step-by-Step Guide for Businesses](/sales-tax-guides/usa/texas).

### Sales Tax on Clothing in Texas

In Texas, most clothing items are taxable at the 6.25% state rate plus applicable local taxes (up to 8.25% total). However, protective gear, specially designed athletic wear, clothing rentals, and accessories are taxable even during the sales tax holiday.

| Taxable Clothing Items | Examples |
|---|---|
| Accessories | Handbags, jewelry, watches, sunglasses |
| Specialty Footwear | Cleats, ski boots, ballet slippers |
| Protective Gear | Helmets, safety vests, knee pads |
| Rentals | Tuxedo, wedding gown, and costume rentals |

### Sales Tax Holiday Exception

Texas holds an annual sales tax holiday each August (August 7 - 9, 2026). During this weekend, clothing and footwear priced under $100 per item are exempt from state and local sales tax. Items priced at $100 or more are fully taxable, and accessories and protective gear remain taxable regardless of price. Businesses must collect and remit sales tax accordingly.

#### Example Scenario: Sales Tax Collection for Clothing Sales in Texas

A business with a physical presence or economic nexus selling clothing in Texas must apply different tax rules depending on whether the sales tax holiday applies and whether the item qualifies for exemption.

### Table: Texas Sales Tax Holiday (Example Scenarios)

| Scenario | Item Price | Sales Tax Rate | Tax Collected | Reason |
|---|---|---|---|---|
| Clothing item under $100 during tax holiday | $80 | 0% | $0 | Exempt during the tax-free weekend (under $100 threshold). |
| Clothing item at or above $100 during tax holiday | $120 | 8.25% | $9.90 | Items priced at $100 or more are fully taxable even during the holiday. |
| Accessory below $100 during tax holiday | $50 | 8.25% | $4.13 | Accessories and protective gear remain taxable year-round. |
| Clothing item under $100 outside tax holiday | $80 | 8.25% | $6.60 | Fully taxable since it's not during the tax holiday. |
| Clothing item above $100 outside tax holiday | $120 | 8.25% | $9.90 | Regular clothing is always taxed outside the holiday. |
| Accessory below $100 outside tax holiday | $50 | 8.25% | $4.13 | Items like handbags and safety gear are always taxable. |

#### Notes

Clothing and footwear under $100 per item are tax-free during the August sales tax holiday (August 7 - 9, 2026).

Items priced at $100 or more are fully taxable even during the holiday.

Accessories and protective gear remain taxable year-round regardless of price.

Businesses must track exemptions, manage registration, and understand economic nexus properly to ensure accurate tax collection and compliance.

Kintsugi Intelligence automates location-based tax rate application, exemption management, and accurate reporting across all your one-click integrations to ERP, HR, and eCommerce systems like Shopify, BigCommerce, Amazon, Quickbooks, and Rippling.

### Exemptions to Clothing Sales Tax in Texas

Certain clothing sales in Texas qualify for exemptions from the 6.25% state sales tax plus local rates (up to 8.25% total). Below are key exemptions with example scenarios.

| Exemption Type | Details | Example Scenario | Tax Savings (8.25%) |
|---|---|---|---|
| Sales Tax Holiday | Clothing and footwear under $100 per item are tax-free during Texas's annual sales tax holiday (August 7 - 9, 2026). | A customer buys a $90 shirt during the holiday. | $7.43 saved. |
| Resale Purchases | Retailers buying inventory for resale are exempt with a valid resale certificate. | A boutique buys $5,000 in wholesale clothing for resale. | $412.50 saved. |
| Nonprofit Organizations | Some 501(c)(3) charities qualify for exemptions on clothing purchases. | A nonprofit buys $2,000 worth of uniforms for volunteers. | $165.00 saved. |
| Government Purchases | Clothing bought for official federal, state, or local government use is exempt. | A police department buys $10,000 in uniforms for officers. | $825.00 saved. |

#### Notes

Retailers and nonprofits can save hundreds to thousands of dollars on bulk clothing purchases.

Proper documentation (e.g., resale certificates, nonprofit forms, government exemption documents) is required to claim exemptions.

### FAQs

#### What is the sales tax on clothing in Texas?

In Texas, clothing is taxed at the standard state rate of 6.25% plus local rates unless exempt during tax holidays.

#### Are all clothes tax free in Texas?

No, only clothing and footwear priced under $100 per item are tax-free during Texas's annual sales tax holiday. Outside the holiday, all clothing is taxable.

#### What is exempt from sales tax in Texas?

In Texas, exemptions include groceries, prescription medications, medical devices, manufacturing equipment, and items purchased for resale.

For city-based, local sales tax rates in Texas, see our [Texas sales tax guide](/sales-tax-guides/usa/texas) for the state and local rate breakdown.

## What Businesses Need to Know About Sales Tax Compliance in Texas

Texas businesses must collect and remit state (6.25%) and local (up to 8.25% combined) sales tax, maintain proper records, file timely returns, and manage exemptions to ensure compliance.

### How to Qualify for Texas Clothing Sales Tax Exemptions

To qualify for a Texas clothing sales tax exemption, businesses and organizations must meet specific criteria and provide valid documentation.

| Exemption Type | Qualification Requirements | Example Savings (8.25%) |
|---|---|---|
| Sales Tax Holiday | Purchase qualifying clothing and footwear under $100 per item during the annual sales tax holiday (August 7 - 9, 2026). | $8.17 saved on a $99 item |
| Resale Purchases | Provide a valid Texas Sales and Use Tax Resale Certificate (Form 01-339) for inventory purchases. | $412.50 saved on $5,000 inventory |
| Nonprofit Organizations | Submit proof of 501(c)(3) status and use the exemption for qualifying purchases. | $165 saved on $2,000 in uniforms |
| Government Purchases | Purchases must be made directly by a government entity for official use. | $825 saved on $10,000 in uniforms |

### Required Forms for Sales Tax Compliance for Businesses in Texas

To qualify for Texas clothing sales tax exemptions, specific forms are required based on the exemption type:

| Exemption Type | Required Form | Description |
|---|---|---|
| Resale Purchases | Texas Sales and Use Tax Resale Certificate (Form 01-339) | Retailers purchasing inventory for resale must complete this form to certify that the items are for resale and therefore exempt from sales tax. |
| Nonprofit Organizations | Application for Exemption - Charitable Organizations (Form AP-205) | Nonprofit entities seeking tax-exempt status in Texas should submit this application to the Texas Comptroller to obtain exemption from sales tax on qualifying purchases. |
| Government Purchases | Texas Sales and Use Tax Exemption Certification (Form 01-339) | Government entities can use this form to certify their exemption from sales tax when making official purchases. |

### Summary: Texas Tax Rules for Retail Businesses

Retail businesses in Texas must comply with state and local sales tax regulations, including tax collection, nexus considerations, reporting, and exemption requirements, which are crucial during shopping seasons.

| Requirement | Details | Example Scenario |
|---|---|---|
| Sales Tax Rate | State tax: 6.25% + local tax (up to 2%) = max 8.25% | A boutique in Dallas applies an 8.25% tax on sales. |
| Sales Tax Permit | Required for all retailers; register with the Texas Comptroller | A new store registers before making taxable sales. |
| Tax Collection & Remittance | Businesses must collect tax and remit it to the state based on filing frequency (monthly, quarterly, annually). | A retailer with $50,000 in sales collects $4,125 in tax. |
| Exemptions | Sales for resale, nonprofit organizations, and government purchases may qualify for exemption. | A store selling wholesale goods uses a resale certificate. |
| Sales Tax Reporting | Businesses must file sales tax returns online through the Texas Comptroller's portal. | A retailer submits quarterly tax reports to stay compliant. |
| Penalties for Non-Compliance | Late or incorrect filings may result in fines, interest, or audits. | A business failing to file on time faces penalties. |

For details on Texas SaaS sales tax, read Kintsugi's guide: [Texas SaaS Sales Tax: 2026 Guide for Businesses](/blog/texas-saas-sales-tax).

## Automate Sales Tax on Clothing in Texas for Your Business

Managing Texas sales tax compliance can be a nexus of complexity, from verifying local tax rates to tracking exemptions and meeting filing deadlines. Kintsugi simplifies this process with powerful automation tools designed for modern businesses.

| Challenge | How Kintsugi Helps | Benefits |
|---|---|---|
| Taxable vs. Non-Taxable Apparel | Differentiates between taxable and exempt items (e.g., sales tax holidays, $100 threshold). | Ensures compliance with exemptions. |
| Sales Tax Rate Variability | Automates state (6.25%) and local tax rate calculations for accurate total rates. | Prevents overpayment or underpayment. |
| Exemption Certificate Management | Tracks and validates resale certificates for wholesale apparel purchases. | Reduces audit risks and ensures proper tax collection. |
| Sales Tax Holidays | Automatically applies exemptions for qualifying items under $100 during tax-free periods. | Maximizes compliance during exemptions. |
| Reporting and Filing | Generates detailed sales tax reports for state filings. | Saves time and ensures accuracy. |

### Streamlining Texas State Sales Tax on Apparel

Let Kintsugi handle the complexities of Texas sales tax so you can focus on growing your business. Visit our Product Platform and Pricing pages to learn more and get started today!

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**Related resource:** For current rates, nexus thresholds, filing deadlines, and FAQs, see Kintsugi's [Texas Sales Tax Guide](/sales-tax-guides/usa/texas).