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Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts

taxes

AIRCRAFT AND TEXAS SALES AND USE TAX


Airplanes, helicopters and FAA-approved flight simulators are considered aircraft, while other flying devices, including balloons and gliders, are not.

Sales and use tax is due on the sale, lease or rental of an aircraft. Tax is due on materials used to maintain, repair or remodel an aircraft, unless an exemption applies.

When buying an aircraft in Texas, you will pay between 6.25 percent and 8.25 percent sales and use tax on the aircraft’s sales price, less the value of any trade-in. In most cases, the total tax paid is based on the rate in effect at the seller’s place of business.

  • The state sales and use tax rate is 6.25 percent.
  • Local sales and use tax rates vary throughout the state, up to 2 percent.
  • The maximum combined tax rate is 8.25 percent.

If you buy an aircraft from a seller who has a Texas Sales and Use Tax Permit, the seller will collect any sales tax due and remit it to the Comptroller’s office. The seller will give you a receipt that either shows the amount of tax paid or includes a statement that tax is included in the purchase price.

If the seller does not collect the tax and an exemption does not apply, you must pay the tax to the Comptroller’s office using Form 01-156, Texas Use Tax Return (PDF).

If you buy your aircraft from an out-of-state seller for use in Texas, you can claim a credit for sales tax legally paid to the out-of-state seller against the use tax due in Texas.

Aircraft Bought and Used Outside of Texas

An aircraft bought, leased or rented outside of Texas is not subject to Texas sales and use tax if it is predominantly used outside of this state for at least one year:

  • The one-year period begins on the date the aircraft is acquired out of state or the date construction of the aircraft was completed, whichever is later.
    • The aircraft must be substantially complete in the condition for its intended use.
  • An aircraft is predominantly used outside Texas if more than 50 percent of its departures are made from locations outside Texas.
  • You must keep records showing each of the aircraft’s departures.

Leases and Rentals to Related Parties

You can lease or rent an aircraft tax free to a related party if either of the following conditions is met:

  • You paid tax on the aircraft when you bought it.
  • Your purchase was exempt from tax for a reason other than one of the following:
    • You bought the aircraft for resale.
    • Your purchase qualified as an occasional sale.

If your purchase was exempt from tax as an occasional sale, you may still lease the aircraft tax free to a related party if the related party could have claimed the occasional sale exemption on the aircraft if they were the purchaser.

A related party can be an affiliate of your company or an owner or member of either your company or an affiliate.

Exemptions

Several tax exemptions are available specifically for aircraft.

To claim an exemption, you must give the seller a Form 01-339, Texas Sales and Use Tax Exemption Certificate (PDF) when you buy the aircraft.

Divergent Use

You owe tax on an aircraft you buy with a valid exemption certificate (PDF) when it is used in a taxable manner. The tax due is based on the value of the aircraft for the period of time used. You can pay the tax due on your divergent use on your Texas Sales and Use Tax Return. If you do not have a permit, you can pay the tax due to the Comptroller’s office using Form 01-156, Texas Use Tax Return (PDF).

You do not owe tax on your temporary use of an aircraft that you buy for resale.

Maintenance, Repair and Remodeling

Sales tax is due on separately stated charges for materials and parts when you have your aircraft serviced. Tax is not due on the separately stated charges for labor.

Sales tax is not due on a lump-sum charge for maintenance, repair and remodeling, but the service provider must pay sales tax when buying materials used to perform the work.

More Information

94-168
(01/2020)

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