Hand Sanitizer and Taxation in Texas: What You Need to Know

Is hand sanitizer taxable in Texas?
Texans can still buy tax-free personal hygiene items like hand sanitizer, soap and wipes with a “”drug facts”” label, since they are always exempt from sales taxes. Similar restrictions apply for property tax savings.
Read more on www.texastribune.org

Hand sanitizer has become a standard item in many homes and places of business as the COVID-19 pandemic continues to have an influence on our daily lives. However, a lot of individuals still have questions about whether hand sanitizer is taxable in Texas. Yes, hand sanitizer is chargeable with sales tax in Texas.

On the website of the Texas Comptroller, it is stated that “hand sanitizers, antiseptic washes, and antibacterial soaps are taxable as toiletries.” This means that in Texas, sales tax is charged on any item used to clean or adorn the body. Therefore, you can anticipate paying sales tax on top of the purchase price if you buy hand sanitizer at a retailer in Texas.

What about other everyday objects, though? Can you tax Starbucks coffee? Starbucks coffee is indeed subject to sales tax in Texas. In Texas, it is actually taxed on any food or drink that is ready for immediate consumption. This comprises pastries, sandwiches, and coffee beverages. So, if you stop for a latte and a croissant on the way to work, you’ll have to pay sales tax. In relation to sandwiches, are Subway sandwiches subject to tax in Texas? Both yes and no, is the answer. You must pay sales tax if the sandwich you buy from Subway is meant for immediate consumption (such as eating it there or taking it home). However, you won’t be charged sales tax if you buy a sandwich that isn’t meant for immediate consumption (such a pre-packaged sandwich from the refrigerator section).

What is the 80/20 rule, then? Businesses that sell both taxable and non-taxable goods are subject to this restriction. In essence, a company must collect sales tax on every item sold if taxable sales account for more than 80% of total sales. However, companies can decide to solely charge sales tax on the taxable items if fewer than 80% of sales are made up of taxable goods. Although it can be challenging to follow, it’s crucial for organizations to comprehend in order to comply with Texas tax rules.

In conclusion, many familiar things like Starbucks coffee and Subway sandwiches are taxable in Texas along with hand sanitizer. To avoid any confusion or fines, it’s crucial for both consumers and businesses to comprehend these tax regulations. If you have any inquiries concerning Texas’s sales tax, be sure to speak with a tax expert or look up more details on the website of the Texas Comptroller.