Fireworks and Texas Taxes

Texas sales and use tax is due on all fireworks sales in Texas.

Fireworks sellers must:

Have a Texas Sales and Use Tax Permit issued by the Comptroller’s office;
Have a permit or license issued by the Texas Department of Insurance; and
Collect all applicable state and local sales and use taxes on their fireworks sales, unless an exemption applies.

Selling Periods

You can legally sell fireworks only during the following periods:

June 24-July 4 – Independence Day.
Dec. 20-Jan. 1 – New Year's Eve.

In certain counties, the county commissioners’ court approves selling fireworks in their county during certain periods. If your county approves, you can sell fireworks during these periods:

Feb. 25-March 2 – Texas Independence Day.
April 16-21 – San Jacinto Day.
May 1-5 – Cinco de Mayo (only at a location that is not more than 100 miles from the Texas-Mexico border).
May 25-30 – Memorial Day.

Consignment Sales

Consignment sales are transactions in which a purchaser (consignee) pays a distributor only for items the consignee sells and then later returns any unsold items.

If you are a distributor who sells fireworks on consignment, you are a seller for sales tax purposes. You must collect and remit sales tax on all Texas sales made by your consignees.

Exempt Sales and Sales for Resale

You can accept an exemption certification (PDF) instead of collecting the tax on sales to exempt organizations such as Rotary Clubs, Chambers of Commerce and Lions Clubs.

You can accept a resale certificate (PDF) from buyers who will resell fireworks within the United States or Mexico. If you do not collect the sales tax without receiving a resale or exemption certificate, you are liable for the uncollected tax.

Tax Rates

The state sales and use tax rate is 6.25 percent state. Local taxing jurisdictions (cities, counties, special purpose districts and transit authorities) can also impose up to 2 percent local sales and use tax (PDF) for a maximum combined rate of 8.25 percent.

Due Dates

Sales and use taxes are due the 20th of the month following the end of the reporting period.

More Information

Counties Authorizing Cinco de Mayo Fireworks Sales

94-162
(09/2018)