Rates last verified: August 25th, 2026
Sources: Texas Comptroller; Texas Health and Safety Code. Full citations at the bottom of this page.
Texas taxes telecommunications services under its general sales and use tax rather than a dedicated communications tax. The state rate applies everywhere; the local layer depends on whether each city, county, transit authority, or special purpose district has voted to tax telecom. On top of the sales tax sit the 911 fees, an equalization surcharge, and the Texas Universal Service Fund (TUSF) assessment.
Quick Facts
| Item | Texas Treatment |
|---|---|
| State sales tax on telecom services | 6.25% |
| Local sales tax | Up to 2% (8.25% combined cap); each local jurisdiction votes whether to tax telecom; never applies to interstate long distance |
| 911 emergency service fee | $0.50 per month per local exchange access line (wireline) and $0.50 per month per wireless connection |
| Prepaid 911 fee | 2% of the purchase price of each prepaid telecommunications service |
| 911 equalization surcharge | 1% of the customer's intrastate long-distance charges each month |
| Texas Universal Service Fund | Assessed on providers' intrastate telecommunications receipts; rate set by the PUC of Texas |
| Internet access | Exempt under the federal Internet Tax Freedom Act; Texas's grandfathered tax ended June 30, 2020 |
How Texas Taxes Telecom Services
Texas imposes a 6.25% state sales and use tax on taxable services, and telecommunications services are taxable. Local jurisdictions can add up to 2% for a maximum combined rate of 8.25%.
The local layer is a choice, jurisdiction by jurisdiction. The governing body of a city, county, transit authority, or special purpose district may vote to impose local sales tax on telecommunications services, but not on interstate long-distance calls. Two neighboring cities can treat the same phone bill differently, so the local rate on telecom cannot be assumed from the general local sales tax rate.
Sourcing has its own rule. Local tax is based on where the call originates, or the billing location if the origin cannot be determined. Mobile service works differently: since August 1, 2002, mobile telecommunications taxes follow the customer's street address, and Texas customers pay tax on all mobile services, including charges for calls made while traveling outside Texas. A street-address rule means zip-code-level rate lookups misassign transactions.
911 And Other Per-Line Fees
Texas collects a 911 emergency service fee of 50 cents per month for each local exchange access line, and a 911 wireless emergency service fee of 50 cents per month on each wireless connection. Prepaid wireless pays a 911 fee of 2% of the purchase price of each prepaid telecommunications service. The Commission on State Emergency Communications (CSEC) administers the wireless funds and distributes them to Texas's 911 jurisdictions.
Two more charges ride along. A 911 equalization surcharge applies at 1% of the customer's intrastate long-distance charges each month. And providers pay a Texas Universal Service Fund assessment on intrastate telecommunications receipts, at a rate set by the PUC of Texas, which providers typically recover as a line-item surcharge.
The 911 fee does not apply to public coin or card-operated telephones, paging or one-way signaling, data-only channels, internet service provider data lines, wireless roaming, private telecommunications systems, or lines already subject to the wireless fee. Neither the 911 fees nor the equalization surcharge may be collected from the state or federal government.
Taxability By Service Type
Per Texas Comptroller publication 94-132, state and local sales tax applies to:
- Basic local exchange service
- Installation and service connection fees
- Intrastate long-distance calls
- Call waiting, call forwarding, paging, and mobile telephone service
- Facsimile and mobile radio service
- Equipment rented or leased with the service
Not taxable or exempt:
- Interstate long-distance calls originating outside Texas
- Local sales tax on interstate long-distance calls (barred everywhere in Texas)
- Services purchased for resale
- Internet access, under the federal Internet Tax Freedom Act
How CereTax Handles Texas
Texas hides its complexity in the local layer. Whether a jurisdiction taxes telecom at all depends on a local vote, and mobile service follows the customer's street address, so the rate on a single invoice depends on exactly where each customer sits. CereTax assigns tax at the rooftop level, tracks which Texas jurisdictions tax telecom and which do not, applies the sourcing rules by service type, and keeps an audit trail behind every calculation. If you serve customers in Texas, book a demo and bring a real invoice.
Sources
- Texas Comptroller of Public Accounts, publication 94-132, Telecommunications Services. Accessed August 17, 2026.
- Texas Comptroller of Public Accounts, Sales and Use Tax. Accessed August 17, 2026.
- Texas Comptroller of Public Accounts, publication 94-167, Texas 9-1-1 Emergency Service Fee and 9-1-1 Equalization Surcharge. Accessed August 17, 2026.
- Sections 771.0711 and 771.0712, Texas Health and Safety Code. Accessed August 17, 2026.
- Internet Tax Freedom Act, 47 U.S.C. § 151 note.
- Texas Universal Service Fund: Public Utility Commission of Texas.
See how other states compare on the telecom tax by state hub.
