Texas Sales Tax on Manufacturing and Machinery Texas: Sales Tax Handbook

Texas:

Are Manufacturing and Machinery subject to sales tax?

While Texas' sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of manufacturing and machinery in Texas, including machinery, raw materials and utilities & fuel. To learn more, see a full list of taxable and tax-exempt items in Texas.


Machinery
EXEMPT
Sales of machinery are exempt from the sales tax in Texas.

Raw Materials
EXEMPT
In the state of Texas, the exemption applies directly to any types of materials that have become an ingredient or component of some sort of manufactured property. In addition, any sort of materials which have been directly consumed in manufacturing are considered to be exempt if they have been deemed necessary for the operation or if they cause any sort of chemical or physical changes to the product.

Utilities & Fuel
EXEMPT
In the state of Texas, any gas and electricity which is directly used in manufacturing is considered to be exempt.



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