The Denton Rate
Denton's sales tax is 8.25 percent: 6.25 percent for the state, 1.5 percent for the city and 0.5 percent for the Denton County Transportation Authority, which runs local buses and the A-train to the DART network. BOMCAS handles sales tax for Denton businesses remotely.
For permits and the general list of taxable services, see the Texas sales and use tax page; below are Denton's bars, venues and hotels.
Bars and Mixed Beverages
Bars and restaurants that serve alcohol for consumption on site collect mixed beverage sales tax of 8.25 percent from customers and pay mixed beverage gross receipts tax of 6.7 percent themselves. Both are filed monthly. Food is subject to ordinary sales tax. Bars on the Square and Fry Street need their point-of-sale systems set up to separate alcohol, food and other sales.
Cover Charges and Ticketed Shows
Cover charges and tickets for concerts and shows are taxable amusement services. Venues that let promoters sell tickets should agree who collects and reports the tax. Some events run by qualifying nonprofits may be exempt.
Music Lessons and Studios
Lessons in music are instruction and generally not taxable. Rental of rehearsal or recording space for a period of time may be taxable depending on what is provided. Instrument repair is a taxable service.
Manufacturers
Peterbilt's suppliers and other manufacturers can buy materials that become part of their products and equipment used directly in manufacturing without tax, using exemption certificates. Maintenance supplies and office equipment remain taxable.
Electricity and Utilities
Denton Municipal Electric, owned by the city, supplies most Denton businesses. Commercial electricity is taxable, but electricity used predominantly in manufacturing can be exempt with a predominant use study and a certificate given to the utility. Residential electricity is exempt.
Restaurants and Food Trucks
Restaurants and food trucks collect tax on prepared food, and bakery items sold without plates or utensils are exempt. Food trucks at events collect tax at the rate where they sell.
Shops Near Campus
Retailers near campus collect tax on most merchandise. During the August sales tax holiday, qualifying clothing, footwear, school supplies and backpacks priced under $100 can be sold tax free, and point-of-sale systems should be set up in advance so the right items are exempt.
Festivals and Events
Vendors at festivals on the Square and other events must hold a Texas sales tax permit and collect tax on their sales. Organisers with many vendors may obtain a temporary permit arrangement or ask each vendor for permit details. Admission to events is taxable unless an exemption applies to the organiser.
Equipment Rental
Businesses that rent sound systems, lighting and staging collect tax on the rental. When an operator is included, the charge can still be taxable as a rental or as part of a taxable amusement service. Contracts and invoices should show what is supplied.
Hotel Taxes
Denton hotels collect 6 percent state hotel tax and 7 percent city hotel tax, and the city tax is filed with Denton monthly, by the 20th of the following month. Hotels in the Denton Tourism Public Improvement District, formed in 2024, also collect a 2 percent assessment on the same schedule. Short-term rental hosts collect the state and city taxes unless a platform does.
Our Work
- Permits and returns.
- Mixed beverage tax setup.
- Venue and ticket tax.
- Manufacturing exemptions.
- Hotel tax filings.
- Audits and refunds.
Denton Sales and Use Tax Questions
Do bars pay two taxes on drinks?
Yes: 8.25 percent mixed beverage sales tax collected from customers and 6.7 percent gross receipts tax paid by the bar.
Are cover charges taxable?
Yes, as amusement services.
Are music lessons taxable?
Generally no, as instruction.
When is Denton hotel tax due?
Monthly, by the 20th of the following month.
Talk to BOMCAS About Sales and Use Tax in Denton
Sales tax returns must agree with the books and the business return. Staff are paid through payroll, audits are handled under back taxes, new venues are planning decisions, owners file personal returns and foreign sellers raise cross-border points. You can read the statewide Texas rules on business returns, personal tax, bookkeeping, payroll, planning, late filing and cross-border tax on our state pages, linked from the Texas overview.
Running a venue off the Square, renting houses near campus or filing as an international student for the first time? Drop BOMCAS a line about it and we will let you know what we would look at first and what a quote would need. You can reach us on the contact page or the form below, by calling 780-667-5250 or by emailing info@bomcas.ca. Each Denton service is linked from the Denton overview. The information here is general and is not advice for your own situation.