Specific items purchased by people with disabilities are exempt from Texas sales and use tax and motor vehicle sales and use tax. This publication provides basic information about those exempt purchases.
Some items are always tax exempt for people with disabilities. Other items are exempt when you give the seller a prescription or Form 01-339 (Back), Texas Sales and Use Tax Exemption Certification (PDF). Repairs, maintenance and modifications to the exempt items are also exempt. See on this page “Items and Services Exempt from Sales and Use Tax.”
You do not need to give an exemption certificate to the seller when you buy items that are always exempt. See the chart below for items that are always exempt, and items that are exempt under certain conditions.
Some items are exempt only when bought for medical reasons or to allow individuals with disabilities to function independently.
You must give the seller or service provider either a doctor’s prescription or a properly completed exemption certificate to buy these items or services tax free. See the chart below for examples.
A short description, such as “harness for guide dog,” is enough to document why you are claiming the sales tax exemption. The seller keeps the exemption certificate for their records in case of an audit.
|Exempt by Law||
|Exemption Certificate Required||
Cars, vans, trucks and other vehicles are subject to motor vehicle sales and use tax. Motor vehicles are exempt from tax if they are modified to be used by someone with orthopedic disabilities to help them drive or ride in the vehicle.
The modified vehicle must be used at least 80 percent of the time to transport, or be driven by, a person with an orthopedic disability.
This exemption does not apply to trailers or other vehicles not designed to transport people.
No tax is due on adaptive devices, the labor to install those devices, or any charge to remodel the vehicle to accommodate the driver or passenger with an orthopedic disability. Examples of modifications that qualify a motor vehicle for tax exemption include the following:
To receive motor vehicle tax exemption, you must complete both of the following:
You can give these documents to the motor vehicle dealer when you buy the vehicle, or to the County Tax Assessor-Collector when you title and register the vehicle.
Examples of other modifications that do not qualify include the following:
If you paid tax in error, you can ask the seller for a refund. If the seller chooses not to give you a refund, you can ask the seller for a completed Form 00-985, Assignment of Right to Refund (PDF), so you can request a refund of the tax directly from the Comptroller’s office.
If you paid tax in error on an exempt motor vehicle, you can claim a refund from the Comptroller's office by submitting a Form 14-202, Texas Claim for Refund of Motor Vehicle Tax (PDF).