Dallas Sales and Use Tax

The Dallas Rate

Sales tax in the City of Dallas is 8.25 percent: 6.25 percent to the state, 1 percent to the city and 1 percent to DART, the regional transit agency. That rate applies across the parts of the city in all five counties. Many neighbouring cities are also DART members, but others are not and use their local 2 percent differently, so a business with locations in Dallas and nearby suburbs should not assume one rate fits all. BOMCAS sets up and files sales tax for Dallas businesses remotely.

Our Texas sales and use tax page covers registration and taxable services; below are Dallas rates, wholesale and event rules.

Wholesale, Showrooms and Resale Certificates

Showrooms at the Dallas Market Center and other wholesale businesses sell to retailers who intend to resell. Those sales are exempt only when the buyer gives a properly completed Texas resale certificate, or an acceptable out-of-state certificate, and the seller keeps it on file. A permit number on an order form is not enough. Samples given away, display goods used in the showroom and items taken for personal use are subject to use tax. In an audit, missing certificates are the most common problem for wholesalers.

Events, Festivals and the State Fair

Vendors at the State Fair of Texas at Fair Park, concerts, conventions and markets need a sales tax permit. Out-of-state vendors and those selling only occasionally can get a temporary permit for the event. Sales at the event are generally taxed at the rate where the event is held, and food, drink and merchandise sales should be recorded daily.

Technology and Data Services

Dallas has a growing number of software, data and managed service companies. In Texas, data processing services are taxable on 80 percent of the price, and information services are also taxable with a similar 20 percent exemption. Software delivered electronically is generally taxable as tangible personal property, while custom programming may be treated differently. Companies selling to customers across the country must also look at other states' rules, but their Texas sales follow these definitions.

Restaurants and Bars

Restaurants in Deep Ellum, Bishop Arts, Uptown and Lower Greenville collect sales tax on food and non-alcoholic drinks, and bars and restaurants with a mixed beverage permit owe mixed beverage sales tax on drinks plus the 6.7 percent gross receipts tax. Delivery platforms that act as marketplace providers may collect tax on orders placed through them, which affects how sales are reported.

Hotel Tax

Hotel stays in Dallas carry the 6 percent state hotel tax and a 9 percent city tax, including 2 percent for the convention centre and Fair Park venue projects, for 15 percent. Larger hotels in the Dallas Tourism Public Improvement District also collect a separate assessment. Short-term rental hosts in the city collect and report city hotel tax for stays under 30 days.

Use Tax on Office and Equipment Purchases

Companies moving to Dallas often buy furniture, computers and equipment from out-of-state vendors that do not charge Texas tax. Use tax is owed on those purchases at the Dallas rate. We review fixed asset additions after a move or a fit-out.

What We Handle

Permits, including temporary event permits.
Monthly or quarterly returns and local codes.
Resale and exemption certificate files.
Taxability reviews for software and data services.
Mixed beverage and hotel tax returns.