Invoicing in Texas

Built-in handling of TX sales tax (6.25% state rate) and statutory late fees.

State sales tax
6.25%
Late fee max
1.5%/mo
Metros covered
26
Written contract req.
No

Texas compliance at a glance

  • Sales tax: 6.25% state rate. Most labor exempt; tangible goods and certain services taxable. Combined max 8.25%.
  • Late fees: Up to 1.5% per month. (Tex. Bus. & Com. Code 搂2.207; Tex. Fin. Code 搂302.002) Up to 18%/yr commercial when stated in writing. Default 6%/yr otherwise.
  • Prompt-pay law: Texas Prompt Payment Act (Gov. Code Ch. 2251) for state contracts; private construction Ch. 28. Owners must pay within 35 days of receipt of payment request; interest accrues at prime + 1% otherwise.

Texas metros

Texas guides