How the San Antonio Rate Is Made Up
Sales tax inside San Antonio is 8.25 percent. The state takes 6.25 percent, and the local 2 percent is divided among the city's general fund, a one-eighth cent for the Pre-K 4 SA programme, a quarter cent for the Advanced Transportation District and five-eighths of a cent for VIA Metropolitan Transit. Retailers do not report those parts separately, but the city's address boundaries still matter. Bexar County has suburban cities and unincorporated areas with different combinations, and an address with a San Antonio ZIP code may be in Converse, Live Oak, Leon Valley or outside any city. BOMCAS checks each location before the first return is filed.
The Texas sales and use tax page covers taxable services and remote sellers. San Antonio's rate, hotel tax and base contracts are covered here.
River Walk Restaurants and Bars
Restaurants downtown and along the river collect sales tax on food and drinks and, if they hold a mixed beverage permit, mixed beverage sales tax on alcohol, with the 6.7 percent gross receipts tax owed by the permit holder. Busy weekends, Fiesta in April and convention traffic mean large swings in monthly receipts, so a business may move between quarterly and monthly filing as volume changes. Gratuities that customers add voluntarily are not taxable, but mandatory service charges are.
Hotels, Inns and Short-Term Rentals
San Antonio hotel stays carry the 6 percent state hotel tax plus a 9 percent city tax, made up of a 7 percent general rate and 2 percent for the convention centre expansion, and the city also collects a Bexar County venue tax. Owners of short-term rentals in King William, Southtown or near the Pearl owe these taxes for stays under 30 days unless the platform collects them, and the city requires its own registration and reports.
Contractors on Base and Elsewhere
Contractors working at Fort Sam Houston, Lackland or Randolph face the same Texas rules as on private projects, with one twist: the federal government is exempt from sales tax, but a contractor that buys materials to incorporate into real property for the government generally pays tax on those materials unless the contract is structured as a separated contract under the exemption rules. Repair and remodelling of nonresidential property is taxable. We review the contract wording before the bid, not after the audit.
Manufacturers and Suppliers
Toyota suppliers and other plants can buy machinery and equipment used directly in manufacturing tax free with an exemption certificate, but not maintenance tools, forklifts used only in warehousing or office equipment. Items bought from out-of-state vendors without Texas tax owe use tax at the San Antonio rate. Audits often focus on the fixed asset additions of a new plant, so we keep exemption certificates and invoices together.
Retail and Online Sellers
Shops at the Pearl, La Cantera and the Shops at Rivercenter and home-based sellers using online marketplaces need permits for each location and must know whether the marketplace collects tax on their behalf. Texas sources most sales to the seller's place of business, so a seller shipping from a warehouse on the East Side charges the local rate there, not the customer's.
What We Handle
- Permits, local codes and filing frequency.
- Monthly, quarterly or annual returns.
- Mixed beverage and hotel tax returns.
- Contract review for construction and base projects.
- Manufacturing exemptions and use tax reviews.
San Antonio Sales and Use Tax Questions
What is the sales tax rate in San Antonio?
8.25 percent: 6.25 percent state and 2 percent local, which includes the city, Pre-K 4 SA, the Advanced Transportation District and VIA.
Do contractors on base charge sales tax?
It depends on the contract. Materials for government real property projects are usually taxable to the contractor unless the contract qualifies for an exemption.
Are service charges at restaurants taxable?
Mandatory service charges are taxable. Tips that customers choose to leave are not.
Do short-term rentals in San Antonio owe hotel tax?
Yes, for stays under 30 days, at the state, city and county rates, unless the platform collects them.
Talk to BOMCAS About Sales and Use Tax in San Antonio
Tax accounts in the books keep returns accurate, and sales tie to the business return. Tipped staff run through payroll, unfiled periods go to catch-up filing, plant purchases are a planning question, rental hosts report income on personal returns, and Canadian sellers should read cross-border tax. The same subjects across the state are covered on our Texas pages for business taxes, personal returns, bookkeeping, payroll, planning, late filing and cross-border work, with a summary in the statewide overview.
Send BOMCAS a short note about your San Antonio business or household and we will come back with next steps and the documents we need for a quote. Reach us through the contact page or the form below, by phone at 780-667-5250 or at info@bomcas.ca. All San Antonio services are on the San Antonio overview. Nothing here is advice for your particular circumstances.