Frequently Asked Questions

Texas Tax Group – Your State Tax Refund and Audit Defense Specialists

Texas state sales and use taxes are complex for many businesses. Our former TX Comptroller auditors are happy to answer your questions and offer seasoned guidance when you have problems or concerns.

Browse our most frequently asked questions below and consult the resources provided for more help. If your situation or problem still needs to be addressed, complete the contact form and include your question. A TTG tax expert will be in touch to offer assistance.

TX State Sales and Use Tax FAQ

How do I determine if my business is required to collect Texas sales and/or use tax?

Texas Tax Group can perform a Texas Nexus Study to determine if your business is required to collect and report state taxes. Contact us for more information.
How do I know what tax rate to use?

The Texas state sales and use tax rate is 6.25 percent, but local taxing jurisdictions may also impose sales and use tax of up to 2 percent for a total maximum combined rate of 8.25 percent. Consult the TX
Comptroller’s Office Sales and Use Tax Rates on their website. Should I round tax amounts?

The TX Comptroller’s Office recommends calculating sales tax to the third decimal place and rounding accordingly. For example, if the third decimal place is equal to or greater than five, round up to the next cent. If the third decimal place is four or less, round down to the next cent. You can also consult the TX Comptroller’s Rate Chart.
What if I collect an incorrect amount of sales taxes?

Businesses are responsible for collecting and remitting the correct sales tax amount to the Comptroller’s Office. Underpaying taxes may result in penalties and interest. Overpaying taxes means losing revenue for your business.
What happens if I don't file my tax report?

If you fail to file a required tax report, the Comptroller's office will send you an estimated billing with instructions to file a report providing your actual sales data for the estimated period.
What if I don’t pay enough taxes?

The Comptroller's office will send you a billing notice requesting you pay the remaining balance. The balance is due upon receipt of the notice. This notice will outline how additional penalties and interest will be assessed. It also explains the process for requesting a hearing if you disagree with the billing notice.
Does the Comptroller's office file tax liens?

Texas State Law requires that all past-due taxes, fines, interest, and penalties owed to the state must be secured by a lien. Please be aware that a tax lien could hurt your credit rating. If you are past due in paying your taxes, contact Texas Tax Group for assistance.
What if the Attorney General's Office contacts me about a tax liability?

The TX Comptroller's Office may refer delinquent accounts to the State Attorney General’s Office after it exhausts its own collection efforts. Failing to respond to a notification from the Attorney General's Office may result in a civil action.