Texas Fireworks Tax
Frequently Asked Questions
- 1. What is the fireworks tax?
- Fireworks tax is a tax imposed on all retail sales of fireworks (1.4G Class) in Texas. The fireworks tax does not apply to such items as toy guns and party poppers that use paper or plastic caps, or to model rockets and motors. Items that are not subject to fireworks tax may be subject to sales tax. Revenue from the tax goes to a program to assist rural fire departments.
- 2. Is the fireworks tax applicable all year long?
- No. Fireworks tax applies to retail sales of fireworks (1.4G) that can legally be sold in Texas only during three periods each year, from May 1 through May 5 (only when sold at a location that is not more than 100 miles from the Texas-Mexico border in a county that has approved the sale of fireworks during the period), from June 24 through July 4 and from December 20 through January 1.
- 3. What is the tax rate?
- It is 2 percent of the sales price.
- 4. Is the fireworks tax in addition to the state and local sales and use tax?
- Yes. Fireworks tax is not part of the two percent local sales and use tax cap but is imposed in addition to sales and use tax. The combined tax rate charts for sales and fireworks taxes can be found online.
- 5. What permits do I need to sell fireworks?
- To sell fireworks, you need a sales tax permit from the Comptroller's office and a retailer fireworks permit. You can get a fireworks permit from your wholesaler, jobber, or the Texas Department of Insurance.
- The Comptroller's sales tax application is online.
- The application for the fireworks permit from the Texas Department of Insurance (TDI) is online at www.tdi.state.tx.us/fire/fmlifirework.html. You may also call TDI at 512-305-7930 for more information on fireworks licensing.
- 6. When is the fireworks tax and report due to the Comptroller's office?
- For fireworks sold from May 1 through May 5 and June 24 through July 4, the report and tax are due August 20. For fireworks sold from December 20 through January 1, the report and tax are due February 20.
For more information, please call our toll-free number at 1-800-252-5555.