Texas Sales Tax on Software and Digital Products Texas: Sales Tax Handbook

Texas:

Are Software and Digital Products 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 software and digital products in Texas, including canned software - delivered on tangible media, canned software - downloaded, custom software - delivered on tangible media, custom software - downloaded, customization of canned software and digital products. To learn more, see a full list of taxable and tax-exempt items in Texas.


Canned Software - Delivered on Tangible Media
TAXABLE
Sales of canned software - delivered on tangible media are subject to sales tax in Texas.

Canned Software - Downloaded
TAXABLE
Sales of canned software - downloaded are subject to sales tax in Texas.

Custom Software - Delivered on Tangible Media
TAXABLE
Sales of custom software - delivered on tangible media are subject to sales tax in Texas.

Custom Software - Downloaded
TAXABLE
Sales of custom software - downloaded are subject to sales tax in Texas.

Customization of Canned Software
TAXABLE
In the state of Texas, the customization of canned software is considered to be taxable if performed by the person who was the seller of the canned software. Any charges applied to customize canned software which was not sold by the person doing the customization are considered to be exempt.

Digital Products
TAXABLE
Sales of digital products are subject to sales tax in Texas.



  Back to Texas Sales Tax Handbook Top
** This Document Provided By SalesTaxHandbook **
Source: http://www.salestaxhandbook.com/texas/sales-tax-taxability/software-and-digital-products