Is buyer’s premium taxed in Texas?

Commonly yes—tax is assessed on hammer plus premium for most taxable goods. Always check the posted terms for your sale.

What is the Texas tax rate?

State rate is 6.25% with possible local add-ons depending on jurisdiction. Vehicle purchases use 6.25% state rate collected at settlement.

How do resale certificates work?

Present a properly completed Texas resale certificate before settlement for qualifying purchases held for resale; the certificate must include your permit number and business details.

Texas Auction Sales Tax: Hammer & Buyer’s Premium.

Tax math — quick formulas

Define: H = hammer price; BP = buyer’s premium (in $); r = tax rate (e.g., 0.0825).

Tax base (common): TB = H + BP
Sales tax: Tax = TB × r
All‑in total: Total = TB + Tax

Example: H = $500; BP = 15% → $75; r = 8.25% → TB = $575; Tax = $47.44; Total = $622.44.

When tax applies (principles)

Most tangible goods purchased at auction in Texas.
Tax base is commonly hammer + premium (per posted terms).
Vehicle purchases: 6.25% state (title/registration handled separately).
Some exemptions exist (e.g., certain numismatics or resale-qualified purchases). Always rely on posted sale terms.

Need a quick total? Use the Texas Auction Fees Calculator.

Resale certificate (basics)

If you buy for resale, provide a properly completed Texas resale certificate before settlement. Include your sales tax permit number, business name, address, description of items, and a signature. Certificates are subject to verification.

Worked examples

Scenario	Hammer	Buyer’s premium	Tax rate	Tax base	Tax	Total
General goods	$500	15% = $75	8.25%	$575	$47.44	$622.44
Vehicle	$2,000	10% = $200	6.25%	$2,200	$137.50	$2,337.50
Resale certificate	$800	15% = $120	Exempt*	$920	$0.00	$920.00

*Resale purchases must qualify and have a valid certificate on file. Always confirm with the auction’s posted terms.

FAQ

Is the premium always taxed?

For most taxable goods in Texas, yes—the tax base includes hammer plus premium. Check each sale’s terms.

How do local rates work?

Texas has a 6.25% state rate, with potential local add-ons depending on jurisdiction. We apply the rate posted for the event.

Do I pay tax if I have a resale certificate?

Qualified resale purchases are exempt when a valid certificate is provided before settlement. Certificates are subject to verification.

Is shipping taxable?

If shipping is separately stated and occurs after the sale, tax treatment depends on the destination and carrier rules posted for the event. Packing/handling may be taxable as part of the sale—check terms.

What about out‑of‑state buyers?

If the lot is shipped out of Texas by a common carrier, Texas sales tax may not apply; if picked up in Texas, Texas tax usually applies. Always follow the auction’s stated policy.

Do coins or bullion have special rules?

Some numismatic items can have special treatment; eligibility and thresholds vary. Read the posted terms for categorical exceptions.

What documentation is needed for resale?

A properly completed Texas resale certificate with permit number, business details, qualifying purpose, and signature—submitted before settlement. Certificates are subject to verification.

Is buyer’s premium always included in the tax base?

Commonly yes for taxable goods. Many auction terms state the tax base as hammer plus buyer’s premium. Always check the sale’s terms.

Are services like inspection or photography taxable?

If they are part of the sale of the item, they can be included in the taxable base. Stand‑alone optional services may be treated differently depending on terms.

How do local rates affect me?

Texas has a 6.25% state rate; local add‑ons may apply based on the event location or fulfillment address, per the posted terms for the auction.

Plan your bid

To estimate a full all-in total, including premium and tax, open the Texas Auction Fees Calculator.

Open Fees Calculator

Texas auction sales tax — clear rules & examples.