Austin's Rate and Its Boundaries
Sales tax inside Austin is 8.25 percent: 6.25 percent state, 1 percent city and 1 percent Capital Metro. The city runs into Travis, Williamson and Hays counties, and a mailing address that says Austin is not always in the city. Areas outside the city may have a Capital Metro tax, an emergency services district tax or a different city tax, so each store, office and delivery address should be checked. BOMCAS sets up the local codes and files sales tax for Austin businesses remotely.
Our Texas sales and use tax page explains registration, exemptions and filing. Below are the Austin rate and the businesses it affects.
SaaS and Data Processing
Texas taxes data processing services on 80 percent of the price, so many software subscriptions, hosting and online services sold from Austin are taxable, while some custom programming and professional services are not. The definition depends on what the customer is paying for, not what the company calls itself. A contract that bundles taxable processing and non-taxable advice may make the whole fee taxable unless the parts are stated separately. We review contracts and invoices before sales grow.
Music, Film and Games
Ticket sales to concerts and other amusements are generally taxable, and merchandise sold at shows is taxable too. Film and video production and licensing rights have their own rules, and some purchases for qualified film productions can be exempt. A musician selling downloads or physical records needs to know which sales are taxable and where they are sourced.
Festivals and Pop-Up Sellers
Vendors at music festivals, art markets, conventions and temporary events in Austin need a sales tax permit, including sellers who are here only for the event. Out-of-state sellers can obtain a temporary permit. Food, drink and merchandise sales are reported at the event's location, and the event organiser's permit does not cover individual vendors.
Restaurants, Food Trucks and Bars
Austin's food trucks, restaurants and bars collect sales tax on prepared food. A mixed beverage permit holder also collects mixed beverage sales tax and owes the 6.7 percent gross receipts tax. A food truck that moves between cities should charge the rate at the location where the sale takes place, not its commissary or home address.
Hotel and Short-Term Rental Tax
Stays under 30 days in Austin carry 17 percent hotel tax: 6 percent to the state and 11 percent to the city, including the 2 percent venue project tax. Hosts need a city short-term rental licence, and a platform that collects tax does not replace the licence or all reporting duties. The city rules for platforms and hosts were revised in 2025 and 2026, so older advice may be out of date.
Use Tax on Equipment
Computers, servers, studio equipment, furniture and software bought from sellers who did not collect Texas tax owe use tax where first used in Texas. New offices and studios often have large one-time purchases, and audits focus on them.
What We Handle
- Permits and local codes.
- Taxability of subscriptions and bundled contracts.
- Monthly or quarterly returns.
- Event, mixed beverage and hotel tax.
- Exemption certificates and use tax reviews.
Austin Sales and Use Tax Questions
What is the sales tax rate in Austin?
8.25 percent inside the city, including 1 percent for Capital Metro.
Is SaaS taxable in Texas?
Many subscriptions are data processing, taxable on 80 percent of the price. It depends on what the service does.
Does an event organiser's permit cover my booth?
No. Each vendor needs its own sales tax permit.
How much hotel tax do Austin short-term rentals owe?
17 percent combined state and city tax on stays under 30 days, unless an exemption applies.
Talk to BOMCAS About Sales and Use Tax in Austin
The ledger should keep taxable receipts and tax payable distinct, and annual sales must agree with the company return. Tips go through payroll, old untaxed SaaS sales need catch-up review, equipment and contract choices fit into planning, hosts report profit on personal returns, and Canadian suppliers can read cross-border tax. The rest of our statewide coverage runs through business filings, personal filings, bookkeeping, payroll services, planning ahead, back tax work and Canada–U.S. matters, with the Texas overview as a starting point.
Tell us what you are working on in Austin and BOMCAS will reply with the next steps and the records needed for a quote. Send a note from the contact page or the form below, call 780-667-5250 or write to info@bomcas.ca. The Austin overview covers every Austin service. This is general information, not advice for a particular taxpayer.