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;
Collect all applicable state and local sales and use taxes on their fireworks sales, unless an exemption applies; and
Have a permit or license issued by the Texas Department of Insurance.

Selling Periods

You can legally sell fireworks only during the following periods:

From June 24 to midnight on July 4 – Independence Day.
From Dec. 20 to midnight on Jan. 1 – New Year's Eve.
From May 1 to midnight on May 5 – Cinco de Mayo (only at a location that is not more than 100 miles from the Texas-Mexico border).

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:

From Feb. 25 to midnight on March 2 – Texas Independence Day.
From April 16 to midnight on April 21 – San Jacinto Day.
From the Wednesday before the last Monday in May to midnight on the last Monday in May – Memorial Day.
Five days before the first day of Diwali until midnight on the last day of Diwali.

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

Texas state and local sales tax is due on all sales of the fireworks you sell unless the purchaser issues you a valid resale or exemption certificate.

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 have a valid sales tax permit and will resell the fireworks within the United States or Mexico. You must collect the state and local taxes on all of your sales if you do not receive a valid resale certificate from the purchaser at the time of the sale.

You will be responsible for the sales taxes due on all tax-free sales you made without obtaining the proper resale or exemption certificate to document the tax-free sale.

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

Retail Fireworks Selling Seasons (TDI)

94-162
(01/2024)