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2024 Guide to Sales Tax in El Paso, Texas

The Texas Sales Tax Rate
6.25%
El Paso County Sales Tax Rate
0.5%
Special Sales Tax Rate
0.5%
An El Paso Sales Tax Rate
1%

For businesses selling to customers in El Paso or throughout El Paso County, it’s crucial to understand the local sales tax regulations. This guide provides detailed information on sales tax in El Paso, Texas.

We’ll cover the differences between state, county, and city sales tax rates, how to calculate sales tax in El Paso, and whether your business needs to collect sales tax. Additionally, we’ll provide the sales tax rates for the top 10 most populated zip codes in El Paso and offer tips to ensure you remain compliant with sales tax regulations.

What is the Sales Tax in El Paso?

El Paso has a combined sales tax rate of 8.25%. The breakdown is as follows:

  • The Texas state sales tax rate: 6.25%
  • An El Paso County sales tax rate: 0.50%
  • An El Paso city sales tax rate: 1.00%
  • Special sales tax rates: 0.50%

What is El Paso County Sales Tax?

El Paso County imposes a sales tax rate of 0.50%, which is in addition to the state and city rates. This rate is uniform across the county, making it easier to calculate the total sales tax rate for any location within El Paso County.

Tax Rates in El Paso, Texas

Curious about the variation in sales tax rates in El Paso? Here’s a breakdown of the sales tax rates for the top 10 zip codes in El Paso:

Zip Code State Sales Tax County Sales Tax City Sales Tax Special Sales Tax
79904 6.25% 0.50% 1.00% 0.50%
79907 6.25% 0.50% 1.00% 0.50%
79912 6.25% 0.50% 1.00% 0.50%
79915 6.25% 0.50% 1.00% 0.50%
79924 6.25% 0.50% 1.00% 0.50%
79925 6.25% 0.50% 1.00% 0.50%
79927 6.25% 0.50% 1.00% 0.50%
79936 6.25% 0.50% 1.00% 0.50%
79928 6.25% 0.50% 1.00% 0.50%
79938 6.25% 0.50% 1.00% 0.50%

Other Tax Rates for El Paso

In addition to the main tax rates, here are some other tax rates that might apply to your business in El Paso:

Type of Sales Tax Rate
Non-Nexus Sellers – State Use Tax 6.25%
Non-Nexus Sellers – County Use Tax 0.50%
Non-Nexus Sellers – City Use Tax 1.00%
Non-Nexus Sellers – Special Use Tax 0.50%
Out-of-State Sellers – State Use Tax 6.25%
Out-of-State Sellers – County Use Tax 0.50%
Out-of-State Sellers – City Use Tax 1.00%
Out-of-State Sellers – Special Use Tax 0.50%
Marketplace Facilitators – State Sales Tax 6.25%
Marketplace Facilitators – County Sales Tax 0.50%
Marketplace Facilitators – City Sales Tax 1.00%
Marketplace Facilitators – Special Sales Tax 0.50%

What Items are Taxable in El Paso?

In Texas, not all items are subject to sales tax. For example, certain groceries and medical products may be exempt. To ensure you’re charging the correct tax, consider adding a Tax Information Code (TIC) to each item you sell. A TIC is a unique identifier that categorizes goods or services.

Here are some examples of taxable items in El Paso:

Item Description TIC Number
Apparel Clothing and footwear 10010
Electronics Computers and accessories 20010
Furniture Home furnishings 30010

What Items are Exempt from Taxes in El Paso?

Texas exempts several items from sales tax to encourage their purchase or because they are deemed essential. To avoid mistakenly charging tax on exempt items, apply a Tax Information Code (TIC) to each of these products.

Here is a list of some tax-exempt items in El Paso:

Item Description TIC Number
Prescription Drugs Medications 40010
Groceries Unprepared food items 50010
Medical Equipment Durable medical equipment 60010

Who Needs to Collect Sales Tax in El Paso?

Businesses must collect sales tax in El Paso if they have either a physical presence (nexus) or an economic nexus in Texas.

What is Physical Nexus in Texas?

Physical nexus in Texas means that your business has some kind of physical presence in the state. This can include having an office, warehouse, employees, or a significant amount of inventory within the state.

What is Economic Nexus in Texas?

If your business doesn’t have a physical presence in Texas, you can still be required to collect sales tax if you exceed the economic nexus threshold. This is defined as making $500,000 in sales in the state within a year.

How you qualify for economic nexus in Texas (full details):

  • Count all sales into Texas, including wholesale transactions, toward your $500,000 sales threshold.
  • Sales made through a marketplace where the facilitator collects tax on your behalf do not count toward the threshold.
  • Once you reach the threshold, you must register for sales tax in Texas and begin collecting and remitting the appropriate taxes.

How to Get a Sales Tax Permit in El Paso?

If your business meets the physical or economic nexus criteria, you’ll need to obtain a sales tax permit in Texas. This process is simple and free.

Here are the steps:

  1. Visit the Texas Comptroller of Public Accounts website.
  2. Complete the online registration form with details about your business.
  3. The system will identify the necessary permits and register you for them.
  4. You’re all set!

For more information, refer to the Texas Comptroller of Public Accounts’ Sales Tax website.

How Do You Charge the Right Amount for Sales Tax in El Paso?

Ensuring you charge the correct sales tax in El Paso can be challenging due to potential rate changes and differing rates across regions. Here’s how to stay compliant:

  1. Manually update rates: Keep track of changes by regularly checking the Texas Comptroller of Public Accounts’ website. This approach requires updating your ecommerce platform frequently to ensure accurate tax rates.
  2. Use sales tax software: Automate the process with sales tax compliance software like TaxCloud. These tools update rates automatically across all jurisdictions, saving you time and reducing errors.

How Do You File and Remit Sales Tax in El Paso?

Do you need to file sales tax returns specifically for the city of El Paso or El Paso County? No, you don’t. If you have sales tax nexus in Texas, you collect sales taxes from across the state and file a single state-wide return. The Texas Comptroller of Public Accounts will process the returns.

If filing Texas sales taxes is time-consuming for you, TaxCloud can help. Our platform automates the entire sales tax management process, from tracking nexus and registering for sales tax to filing returns. With TaxCloud, you can focus on growing your business while we handle your sales tax compliance.

Learn how TaxCloud can simplify sales tax for your business.

Sales Tax Guides by State

Our sales tax guides provide an overview of sales tax rates, nexus thresholds, taxable and nontaxable items, along with other valuable tax knowledge for every U.S. state.