Plano Sales and Use Tax

The Plano Rate

Plano's sales tax rate is 8.25 percent: 6.25 percent to the state, 1 percent to the city and 1 percent to Dallas Area Rapid Transit. Sales in neighbouring Frisco, Allen, Richardson and Murphy carry different local shares. BOMCAS files sales tax for Plano businesses remotely.

Permits and general taxable services are on the Texas sales and use tax page. Software, data services and Plano's hotel tax are covered here.

Software and Data Services

Plano's many technology businesses should know that Texas taxes a surprising range of services. Data processing and information services are taxable on 80 percent of the price, so the tax is effectively applied to 80 percent of the charge. Software sold or licensed to Texas customers is generally taxable, and hosted software is usually taxed as a data processing service. Custom programming, consulting and staff augmentation are usually not, but contracts that mix consulting with software or data services need to be split. We review contracts and invoices to apply the right treatment.

Sales to Headquarters Campuses

Large companies often issue direct payment permits or exemption certificates and expect vendors not to charge tax. Vendors should keep these certificates on file. Where a customer accrues tax itself under a direct payment permit, the vendor is protected if it has the proper documentation. Equipment and supplies delivered from out of state without Texas tax are subject to use tax for the buyer.

Restaurants and Bars

Restaurants and bars at Legacy West, the Shops at Legacy and Downtown Plano collect sales tax on food and soft drinks. Mixed beverage permit holders collect mixed beverage sales tax at 8.25 percent and pay the 6.7 percent gross receipts tax. Mandatory service charges for large parties are taxable, while voluntary tips are not.

Retail and Online Sales

Retailers at Willow Bend and elsewhere collect tax on taxable goods, with exemptions for groceries and many over-the-counter medicines. Plano-based online sellers collect at the buyer's local rate for deliveries in Texas, while sales to other states depend on those states' economic nexus rules.

Hotel Tax

Hotel stays of less than 30 days in Plano carry 13 percent tax: 6 percent state and 7 percent city. In November 2026 Plano voters rejected Proposition A, which would have allowed venue taxes, including an additional hotel tax, to help fund a proposed arena for the Dallas Stars, so the rate is unchanged. The city's report is due monthly, 30 days after the end of each month. Timely filers may keep a 1 percent discount, and late reports carry a penalty. Airbnb has collected Plano's hotel tax for hosts since May 2019, and Vrbo and Expedia since February 2020, but hosts with direct bookings must file themselves.

Use Tax on Business Purchases

Computers, software and furniture bought online from vendors that did not charge Texas tax owe use tax at the Plano rate. Companies furnishing new offices in the Legacy area should review purchases before filing.

Telecommunications and Internet Services

Telecommunications services are taxable in Texas, while internet access is exempt. Companies that bundle phone, internet, hosting and support into one charge must separate the taxable parts or risk tax on the whole bill. Telecom providers also collect local taxes that depend on where the customer's service address is, not where the provider is based.

Subscriptions and Bundles

Plano businesses selling subscriptions that combine software, data, consulting and training need invoices that show each element. Without separate prices, the Comptroller may treat the entire charge as taxable. We work with sales and billing teams to set up price lists that follow the rules.

What We Handle

Permits and location codes.
Taxability reviews for software and data services.
Exemption certificate files.
Monthly or quarterly returns.
City and state hotel tax reports.