How El Paso's Rate Is Built
El Paso's sales tax is 8.25 percent: 6.25 percent to the state, 1 percent to the city, half a cent to El Paso County and half a cent to the county transit district that funds Sun Metro. El Paso County is one of the few large urban counties with its own sales tax, so unincorporated areas and nearby towns such as Socorro, Horizon City and Anthony have their own combinations. BOMCAS registers each location and files sales tax for El Paso businesses remotely.
The Texas sales and use tax page covers permits and taxable services; this one covers export sales, El Paso's rate and its hotel tax.
Sales to Shoppers From Mexico
Texas does not exempt a sale just because the buyer lives in Mexico. A sale is exempt only when the goods are exported, and the retailer must keep proof. When the store ships or delivers the goods across the border, its own shipping and Mexican customs records can support the exemption. When the customer carries the goods out, the usual proof is an export certification issued through the Comptroller's system by a licensed Texas customs broker. Without that, the retailer must collect tax, and the shopper may later claim a refund with proper documents. Stores near the bridges should train staff on which sales can be exempted at the register.
Licensed Customs Brokers
Customs brokers who issue export certifications must be licensed by the Comptroller, follow the rules on inspecting goods and keeping records, and may charge only the permitted fees. Mistakes can lead to penalties and loss of the licence. We help brokers keep their records, fees and filings in order.
Warehouses and Goods in Transit
Parts stored in El Paso and then sent to plants in Juárez are not sold at retail in Texas, so the sale to the plant is exempt as an export when proof of export is kept. Packaging, pallets and warehouse equipment the El Paso company uses itself are generally taxable. Items bought tax free for export and then used in Texas owe use tax.
Purchases From New Mexico
Equipment and supplies bought from New Mexico vendors that did not collect Texas tax owe Texas use tax at the El Paso rate. Contractors working on both sides of the state line need to keep track of where materials are used, because New Mexico's gross receipts tax applies to work there.
Restaurants and Bars
El Paso restaurants collect sales tax on food and non-alcoholic drinks, and permit holders collect mixed beverage sales tax and pay the 6.7 percent mixed beverage gross receipts tax. Payments in pesos still need to be converted and taxed at the full dollar value of the sale.
Hotels and Short Stays
Hotel stays of less than 30 days in El Paso carry 17.5 percent tax: 6 percent state, 9 percent city and 2.5 percent El Paso County. Short-term rental hosts owe the same taxes unless the platform collects them, and city and county taxes are reported locally.
Contractors and Remodelers
Texas splits construction contracts into new construction and repair or remodeling of non-residential property. On new construction under a lump-sum contract, the contractor pays tax on materials and does not charge tax to the customer. Repair and remodeling of commercial buildings, such as warehouses being refitted for new tenants, is a taxable service. With so many El Paso warehouses changing hands as companies move work to Mexico, contractors need to classify each job correctly before they bid it.
What We Handle
- Permits and local codes for each outlet.
- Export exemption procedures and records.
- Monthly or quarterly returns.
- Use tax on New Mexico and online purchases.
- Mixed beverage and hotel tax returns.
El Paso Sales and Use Tax Questions
Is a sale to a Mexican resident tax free?
Only if the goods are exported and the seller keeps proof, such as a licensed customs broker's export certification or its own shipping records.
What is the sales tax rate in El Paso?
8.25 percent: 6.25 percent state, 1 percent city, 0.5 percent county and 0.5 percent transit.
How much is hotel tax in El Paso?
17.5 percent: 6 percent state, 9 percent city and 2.5 percent county.
Do we owe tax on equipment bought in New Mexico?
Yes, Texas use tax is due if the vendor did not collect Texas tax.
Talk to BOMCAS About Sales and Use Tax in El Paso
Exempt export sales should be tagged in the books and agree with the business return. Store staff run through payroll, unsupported exemptions can be reviewed under back taxes, a new warehouse is a planning question, owners report profits on personal returns, and Mexican buyers and affiliates bring in cross-border rules. Our state pages on business returns, individual returns, bookkeeping, payroll, planning, catching up and international filings explain the Texas rules away from the border, and the Texas overview summarises them.
Tell BOMCAS about your El Paso company or household and we will explain what we would do first and which papers would let us quote. Reach us through the contact page or the form below, call 780-667-5250 or email info@bomcas.ca. Every El Paso service is on the El Paso overview. This page offers general information only, not advice for your case.