Free template, Texas tax rules built in
Free Texas Invoice Template
Texas has no state income tax, which is great for your bottom line, but it does have a 6.25% state sales tax and it taxes more services than most states realize. This template helps you bill correctly so you are not on the hook for tax you forgot to collect.
Sales tax on invoices in Texas
Rate: 6.25% state, plus local rates up to 2% (8.25% max)
Texas charges 6.25% state sales tax and lets local jurisdictions add up to 2%, capping the combined rate at 8.25%. Texas taxes more services than most states, including things like data processing, security, and certain repair and remodeling work on real property. If you are in a taxable service category, charge sales tax on it. When in doubt about whether your service is taxable, check the Texas Comptroller rules rather than guessing.
What gets taxed: Goods are taxable. Many services are taxable too, more than in most states.
Rates and rules change. Confirm the current rate and what is taxable with your state tax authority before you file.
Contractor licensing in Texas
Texas does not issue a general contractor license at the state level, but specific trades are licensed: electricians through TDLR, plumbers through the Texas State Board of Plumbing Examiners, and HVAC through TDLR. If your trade is licensed, show your license number on the invoice.
Sample Texas invoice
Example for a job in Austin, TX, showing how the tax line works when some items are taxable and some are not.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Service call and labor | 3 | $95.00 | $285.00 |
| Replacement parts | 1 | $240.00 | $240.00 |
| Subtotal | $525.00 | ||
| Sales tax (8.25% on taxable items) | $19.80 | ||
| Total | $544.80 | ||
Tax is applied only to the taxable lines, which is the part most invoices get wrong. Build yours with the right tax handling in the free generator.
Make this invoice freeBy trade
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View templateNeed a blank one? Use the free invoice generator to build any TX invoice and download a PDF.
Invoice clients in Texas, free.
WaffleInvoice sets your tax rate, calculates totals, sends the invoice, and tracks who has paid. Free for unlimited invoices.
Texas invoice FAQs
Does Texas have a state income tax?
No. Texas has no state income tax, which is one reason it is a popular base for freelancers and service businesses. You still owe federal income tax and federal self-employment tax, and you still collect and remit state sales tax where it applies.
What is the sales tax rate in Texas?
The state rate is 6.25%, and local jurisdictions can add up to 2%, for a maximum combined rate of 8.25%. Use the combined rate for the location of the sale.
Are services taxable in Texas?
Some are. Texas taxes more services than most states, including certain repair, remodeling, data processing, and security services. Check the Texas Comptroller list to see if your service is taxable before you decide not to charge tax.