Do I need to pay sales tax on online purchases?

Whether sales tax is applicable to online purchases in Texas depends on several factors. Generally, the Texas Department of Revenue mandates that sales tax is charged on most retail sales, including online transactions. This means if you are purchasing tangible personal property or certain taxable services from an online retailer, you are likely required to pay sales tax on that purchase. It is important to note that the seller's location and registration status also play a significant role. Texas uses a system known as "destination-based" sales tax, which means that the applicable sales tax rate is based on the location where the buyer receives the item. Consequently, if an online retailer has a physical presence or nexus in Texas, they are obligated to collect and remit Texas sales tax on sales made to Texas residents. Out-of-state retailers without a nexus in Texas are not required to collect Texas sales tax on purchases made by Texas residents. However, it is the responsibility of the buyer to report and pay any applicable use tax on those purchases when sales tax is not collected. You may wish to review the Texas Department of Revenue's website for detailed information on specific tax rates, exemptions, and any updates related to online sales tax legislation. This source can provide comprehensive guidance on how to handle sales and use tax for your online purchases in Texas.